AMD inventory buildup reported
Michael McManus, DigiTimes.com, Taipei [Friday 12 January 2007]
AMD today announced that its fourth quarter revenues, excluding ATI-related segments, will only increase about 3% from the US$1.33 billion reported in the third quarter of 2006. The revenue growth is much lower than 6-13% growth range the company mentioned during its third quarter investor conference.
According to Bloomberg, AMD indicated that falling CPU ASPs (average selling prices) impacted the company last quarter, and a report from Banc of America Securities report also noted that AMD was facing renewed competition from Intel in the channel.
The channel had previously seen an en an extended period of AMD CPU shortages, but inventory began piling up at the end of last quarter, with Banc of America noting that the ramp of AMD-based Dell notebook shipments has been slower than expected.
The financial firm added that it expects AMD to offer significant price cuts later this month, right after Intel cuts prices on January 21.
Dell only began shipping AMD notebooks in the fourth quarter of last year, with the PC maker first targeting the entry-level segment with a 15.4-inch model manufactured by Taiwan-based Quanta Computer.
This goes with qcmadness post about 4th quarter earnings report.
The Channel is filling in addition to profits falling