Breaking News

TerraMaster Launches Storage Upgrade Season with Up to 30% Off During Prime Big Deal Days COLORFUL Launches iGame Guard G114 140W GaN Multi-Port Charger INNO3D TOWER WORKSTATION AWS-511Z-R1 Thermal Grizzly and Noctua introduce WireView Pro II Noctua Edition GPU monitoring device Nikon releases the Z5IIC full-frame mirrorless camera

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Essays
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed

Search form

Slow Game-Console Chip Demand Will Have Negative Effect on AMD Sales

Slow Game-Console Chip Demand Will Have Negative Effect on AMD Sales

Enterprise & IT Jul 30,2019 0

Advanced Micro Devices Inc., the No. 2 maker of computer processors, gave a lower that expected third-quarter sales forecast, indicating low orders for game-console chips from Microsoft and Sony.

Revenue in the current period will be about $1.8 billion, AMD said Tuesday in a statement. The company also pared its forecast for annual revenue.

While sales of PC-related products are improving, the company said revenue is taking a hit because demand from game-console makers is falling short of its original forecasts this year. In the second quarter, revenue in the division that includes server processors and custom chips for consoles declined 12%, AMD said.

The company’s second-quarter net income fell to $35 million, compared with $116 million a year earlier. Revenue in the period was $1.53 billion, 13% lower than a year earlier.

Gross margin, or the percentage of sales remaining after deducting the cost of production, widened to 41% in the second quarter. A year earlier, that measure of profitability came in at 37%.

AMD said it expects full-year revenue to gain at a percentage in the mid-single digits. At the same time, the company slightly raised its forecast for gross margin for all of 2019, to 42%. The sequential and year-over-year increases are expected to be driven by Ryzen, EPYC and Radeon product sales.

Under Lisa Su, AMD is trying to stage a comeback in the business of chips for servers. After owning about a quarter of that market a decade ago, delays to new chips and a failure to keep boosting performance allowed Intel to banish AMD to less than 1% market share. AMD’s new Epyc range of server processors is aimed at clawing back those lost orders.

AMD is also trying to exploit Intel’s delays in shifting production to more advanced technology. AMD now outsources manufacturing of its best chips to Taiwan Semiconductor Manufacturing Co., which seems to be more than a year ahead of Intel in implementing new processes.

At the end of last year, AMD had 3.2% of the market for server chips, up from 0.8% 12 months earlier.

Tags: AMD
Previous Post
Trade Tensions Jeopardize Samsung's Profit
Next Post
Apple Reports Revenue Record Despite Slow iPhone Sales

Related Posts

  • G.SKILL Launches Flare X5X Series with AMD EXPO Ultra Low Latency

  • AMD Advances the Hybrid Future of Quantum Computing

  • AMD Expands AMD Ryzen PRO 9000 Series Processor Lineup

  • AMD Launches Ryzen 9 9950X3D2 Dual Edition Processor

  • MINISFORUM Showcases Agent Computing Solutions

  • Samsung and AMD Expand Strategic Collaboration on Next-Generation AI Memory Solutions

  • AMD Ryzen AI PRO 400 Series CPUs Deliver Advanced AI for Desktops

  • AMD at CES 2026

Latest News

TerraMaster Launches Storage Upgrade Season with Up to 30% Off During Prime Big Deal Days
Enterprise & IT

TerraMaster Launches Storage Upgrade Season with Up to 30% Off During Prime Big Deal Days

COLORFUL Launches iGame Guard G114 140W GaN Multi-Port Charger
Smartphones

COLORFUL Launches iGame Guard G114 140W GaN Multi-Port Charger

INNO3D TOWER WORKSTATION AWS-511Z-R1
Enterprise & IT

INNO3D TOWER WORKSTATION AWS-511Z-R1

Thermal Grizzly and Noctua introduce WireView Pro II Noctua Edition GPU monitoring device
GPUs

Thermal Grizzly and Noctua introduce WireView Pro II Noctua Edition GPU monitoring device

Nikon releases the Z5IIC full-frame mirrorless camera
Cameras

Nikon releases the Z5IIC full-frame mirrorless camera

Popular Reviews

Endorfy Thock V2 Wireless Keyboard

Endorfy Thock V2 Wireless Keyboard

The Quiet Technology Behind the Spin

The Quiet Technology Behind the Spin

SoundPeats Cove Pro

SoundPeats Cove Pro

Akaso Brave 8 Lite

Akaso Brave 8 Lite

Kioxia Exceria Plus G3 512GB microSD

Kioxia Exceria Plus G3 512GB microSD

SoundPeats C30

SoundPeats C30

be quiet! Dark Perk Mice

be quiet! Dark Perk Mice

XbotGo Chamaleon

XbotGo Chamaleon

Main menu

  • Home
  • News
  • Reviews
  • Essays
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed