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Jan 12, 2007 at 03:55 PM |
AMD made some very bold projections during an investor conference late last year that had the hallmarks of potential for coming back to bite it! The bullish business outlook then seemed to contradict the consensus that the price war with Intel Corp would continue to hit profits and prices.
With AMD now giving a warning that revenues will not come anywhere close to past expectations due to falling ASPs, it makes me wonder why AMD executives were so bullish. Business is growing, but at a lesser rate than hyped, though it is too early to tell whether Intel has effectively fought back and gained some market share.
Hopefully the wake-up call will see some more rational behaviour at AMD this year, though should the war with Intel drag on, I doubt that much will change!
I will also be concerned about the planned CapEx program for 2007, which could be tempered if profits fail to improve.
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| Senior Technical Program Manager (Dublin, Ireland, 02/04/2008) | | Senior Embedded Design Support Engineer (Shannon, Co Clare, Ireland, 19/03/2008) | | Embedded Support Engineer (Intel Shannon, Co Clare, Ireland, 19/03/2008) | | Senior Component Design Engineer (Intel Shannon, Co Clare, Ireland, 19/03/2008) | | Site Director & GM (South West UK, 06/03/2008) |
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