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Friday, 18 April 2014 12:37

PC market is down but AMD can grow in it

Written by Fuad Abazovic



Diversification strategy works

AMD posted some rather encouraging Q1 numbers last night, but slow PC sales are still hurting the company, along with the rest of the sector.

When asked about the PC market slump, AMD CEO Rory Read confirmed that the PC market was down sequentially 7 percent. This was a bit better than the company predicted, as the original forecast was that the PC market would decline 7 to 10 percent.

Rory pointed out that AMD can grow in the PC market as there is a lot of ground that can be taken from the competition. The commercial market did better than expected and Rory claims that AMD’s diversification strategy is taking off. AMD is trying to win market share in desktop and commercial segments, hence AMD sees an opportunity to grown PC revenue in the coming quarters. Rory also expects that tablets will continue to cannibalize the PC market. This is not going to change soon.

Kaveri and Kabini will definitely help this effort as both are solid parts priced quite aggressively. Kabini is also available in AMD’s new AM1 platform and we believe it is an interesting concept with plenty of mass market potential. Desktop and Notebook ASPs are flat which is something that the financial community really appreciated. It would not be so unusual that average selling prices were down since the global PC market was down.

Kaveri did well in the desktop high-end market in Q1 2014 and there will be some interesting announcements in the mobile market in Q2 2014 and beyond.

Fuad Abazovic

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