AMD’s Future to Be Set by Q4 2007?

AMD's Quarterly Results Caused Concerns

by Anna Filatova
04/24/2007 | 12:24 PM

AMD seems to be close to financial disaster. Pessimistic analysts as well as most other analysts who have been always sticking to the principle “hope for the worst if you don’t want to get disappointed”, have been very active towards AMD lately. And one of the primary reasons for that is the financial quarterly report for Q1 2007 that the company has recently made public.

 

The numbers presented in this report look far from acceptable for the company, I would say. And unfortunately, most analysts predict that it may get even worse than that.

According to EETimes, even the most pessimistic forecasts didn’t picture AMD’s current financial situation in such gloomy tones. Besides the aggravating economical situation, the company has lost a significant share of the market. According to iSuppli, Intel’s and AMD’s market shares in Q4 2006 equaled 75.7% and 15.7% respectively, but in Q1 2007 these numbers have changed to 80.2% and 11.1%. This is the first serious change like that over the last few years.

At this time everyone is looking forward to Q2-Q3 2007. This is when AMD is expected to announce new graphics (R600) and new processor (Barcelona) technologies that should (or shouldn’t) help the company make up for the lost market share.

In the meanwhile the same analysts believe that AMD’s current finances will last them only for the next few quarters. What happens next is really hard to tell. The company needed more than a year to shake Intel’s positions. Now they obviously don’t have that much time. Anyway, no matter what is going to happen, let’s wish AMD luck. It is obviously in our best interest :)