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Positive Black Friday Sales Give AMD New Hope

By - Source: Reuters | B 27 comments

AMD's CEO said that sales figures stemming from the Black Friday weekend look reasonably well.

During a conference in Scottsdale, Arizona on Tuesday, AMD Chief Executive Rory Read told investors that the company has seen some positive news stemming from Black Friday sales over the last few days. Currently it's too early to call the 2012 holiday season a big success, but AMD's performance through the Thanksgiving holidays "looked reasonably well".

The news is undoubtedly a glimmer of hope for a company that just announced a restructuring plan that includes a 15-percent reduction of its global workforce in the fourth quarter of 2012. As a result of the restructuring, operational savings – primarily in operating expenses – will be approximately $20 million in the fourth quarter of 2012 and approximately $190 million in 2013.

"Our restructuring efforts are decisive actions that position AMD to compete more effectively and improve our financial results," Read said in October. "Reducing our workforce is a difficult, but necessary, step to take advantage of the eventual market recovery and capitalize on growth opportunities for our products outside of the traditional PC market."

Later in November, AMD reportedly hired on J.P. Morgan Chase & Co., a leading global financial services firm with assets of $2 trillion and operations in more than 60 countries, to explore its options. There was talk of a potential sale, or a liquidation of its portfolio of patents at the very least. But AMD fired back at the rumors, reporting that it's not actively pursuing any kind of sale at this time.

"AMD’s board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD’s highly-differentiated technology assets is the right approach to enhance shareholder value," the company said in an official release.

Read said on Tuesday that despite encouraging PC sales over the Thanksgiving weekend, the industry itself is still facing long-term problems as consumers flock to tablets as their primary computing device. Global shipments are expected to decline slightly this year, the first annual drop since 2001, thanks to a struggling economy in the United States and Europe, and slowed economic growth in China.

Because of this, Read said that he does not expect the PC market – which is reportedly around 85-percent of AMD's business – to recover from the slump for several more quarters. What may fuel the eventual recovery is Windows 8 and the various new form factors that try to trump Apple's own iPad.

AMD's sales numbers may have also increased over the Black Friday week due to its involvement with the just-launched Wii U console. The company, which previously provided GPUs for the original Wii and GameCube consoles, currently supplies its DirectX 11-capable Radeon HD GPU for the new Wii U. Nintendo said it has already sold over 400,000 units in North America alone since its debut last week. In contrast, the original Wii saw 600,000 units sold in the first eight days.

 

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Top Comments
  • 27 Hide
    Anonymous , November 27, 2012 9:11 PM
    If AMD fails, we all loose.
  • 25 Hide
    amk09 , November 27, 2012 9:03 PM
    It will also be providing GPU's for the next generation Xbox and PS4, good news for AMD :) 
  • 21 Hide
    anxiousinfusion , November 27, 2012 9:22 PM
    We only have a few more months until the release of AMD's sea islands 8000 series GPUs, no? I hope that adds to their recovery.
Other Comments
  • 25 Hide
    amk09 , November 27, 2012 9:03 PM
    It will also be providing GPU's for the next generation Xbox and PS4, good news for AMD :) 
  • 27 Hide
    Anonymous , November 27, 2012 9:11 PM
    If AMD fails, we all loose.
  • 20 Hide
    dark_wizzie , November 27, 2012 9:19 PM
    Consumers flock to tablets... Average consumer doesn't know jackshit anyways.
  • 21 Hide
    anxiousinfusion , November 27, 2012 9:22 PM
    We only have a few more months until the release of AMD's sea islands 8000 series GPUs, no? I hope that adds to their recovery.
  • 14 Hide
    dolamite74 , November 27, 2012 9:26 PM
    This is a smart move and lot's of companies do this all the time 8) it's called trimming the fat.
  • 21 Hide
    A Bad Day , November 27, 2012 9:40 PM
    The console business should really help AMD.

    anxiousinfusionWe only have a few more months until the release of AMD's sea islands 8000 series GPUs, no? I hope that adds to their recovery.


    A shame that their CPU department couldn't be as successful as the GPU department.
  • 10 Hide
    jerm1027 , November 27, 2012 9:49 PM
    I think AMD should partner with Canonical to provide us with an Ubuntu tablet. I think Unity would be a good interface for touch and netbooks and Canonical already has a developer preview that looks very promising. If AMD could figure out how to get their low-power APU's to run silky smooth with Ubuntu, it could be a strong alternative to the locked down Win8 RT. If they partnered with another hardware vendor (like ASUS) to give us an open tablet like Google did with their Nexus 7, and a distribute as well (like System76), I can guarantee Linux enthusiasts as well as people on a tight budget would flock to an open x86 Ubuntu tablet, myself included.
  • 10 Hide
    erick81 , November 27, 2012 9:55 PM
    I did my part from black Friday through cyber Monday I bought a Fx-8350 coupled with a Gigabyte 990Fx mb and two Sapphire Vapor X 7770 gpus.
  • 11 Hide
    internetlad , November 27, 2012 10:02 PM
    erick81I did my part from black Friday through cyber Monday I bought a Fx-8350 coupled with a Gigabyte 990Fx mb and two Sapphire Vapor X 7770 gpus.


    If those two 7770's are for crossfire, then you've got me scratching my head.
  • 5 Hide
    erick81 , November 27, 2012 10:14 PM
    internetladIf those two 7770's are for crossfire, then you've got me scratching my head.
    The machine is going to be a gift for my nieces the 7770's made more sense with what I had planned to get for a Cpu and Mb but the 8350 and 990Fx fell into my lap for a price that I couldn't pass up so for now it'll work out.
  • 17 Hide
    RADIO_ACTIVE , November 27, 2012 10:31 PM
    This brought a smile to my face :)  I want AMD to suceed, its better for the consumer (me).
  • 7 Hide
    koss64 , November 27, 2012 10:54 PM
    Black Friday I bought myself a new AMD CPU and board (next month im buying the 6670 to go with it). I love AMD becasue of the performance,price point and reliability.
  • 3 Hide
    DRosencraft , November 27, 2012 11:21 PM
    Between this, and that rumor that Intel is switching over to SoC, this might be the best news day AMD has had in ages. In a few months little bro is gonna be building an AMD Workstation (2x Opteron 6212s and a FirePro V5900).If this keeps up, prior rumors of AMDs demise may turn out to have been greatly exaggerated.
  • 3 Hide
    ddpruitt , November 28, 2012 12:27 AM
    drosencraftIf this keeps up, prior rumors of AMDs demise may turn out to have been greatly exaggerated.


    They always were. They are essentially confirming something we knew a while back. AMD's cutting the fat, they have a steady revenue from consoles, and they can still beat Intel when comes to pure cost. AMD's problem has always been not capitalizing on their advantages.
  • 4 Hide
    Anonymous , November 28, 2012 12:44 AM
    if Intel starts soldering their chips to their motherboards (as reported, may or may not be true) then AMD might get a leg up on them by not doing this
  • 7 Hide
    dozerman , November 28, 2012 12:46 AM

    jerm1027I think AMD should partner with Canonical to provide us with an Ubuntu tablet. I think Unity would be a good interface for touch and netbooks and Canonical already has a developer preview that looks very promising. If AMD could figure out how to get their low-power APU's to run silky smooth with Ubuntu, it could be a strong alternative to the locked down Win8 RT. If they partnered with another hardware vendor (like ASUS) to give us an open tablet like Google did with their Nexus 7, and a distribute as well (like System76), I can guarantee Linux enthusiasts as well as people on a tight budget would flock to an open x86 Ubuntu tablet, myself included.

    I don't mean to sound vulgar, but I might actually literally cream my pants if that happened!!!
  • 2 Hide
    dozerman , November 28, 2012 12:51 AM
    internetladIf those two 7770's are for crossfire, then you've got me scratching my head.

    I've got dual 7770s, but it was because my local store wasn't selling anything else and I wanted to support a local retailer.
  • -1 Hide
    gilgamex , November 28, 2012 2:30 AM
    Margins for profit on consoles are much like margins on Tegra for Nvidia, slim but not negligible. It doesn't rake in very much cash, much like the success of the E & C Series APU's AMD put out for netbooks. They sold pretty darn well but it doesn't equate to very much in profit overall.
  • -2 Hide
    iamtheking123 , November 28, 2012 2:39 AM
    ddpruittThey always were. They are essentially confirming something we knew a while back. AMD's cutting the fat, they have a steady revenue from consoles, and they can still beat Intel when comes to pure cost. AMD's problem has always been not capitalizing on their advantages.
    AMD has zero advantages compared to Intel. Intel isn't charging big bucks because that's the development cost...they charge it because people pay it. Xeon Phi is a great example....$2500 starting price ...why? Because the only people buying it have big grants or government funding and don't care about cost.
  • 0 Hide
    bustapr , November 28, 2012 3:27 AM
    didnt expect this at all. nearly all the websites I visited on black friday and cyber monday were flooded with intel cpus(most of which werent really like a good deal should be, $10 off a 2500k?). good thing people weeded those deals out and picked up some AMD chips. i saw an fx-4100 at $80 somewhere($30 off).

    with the rumors that amd is making chipsets for sony and microsoft on their next consoles, it looks like a brighter road ahead for them.
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