AMD CEO Says That There Are Enough Hard Drives

AMD, however, claims that the hit may be insignificant for its business. CEO Rory Read told Marketwatch that he does not see "major pressure in terms of the quarter." Read indicated that hard drive supply in the channel at the beginning of the quarter was healthy, which is in line with Intel's statements, but the blue team said that PC vendors are not ordering as many CPUs as they would in a normal circumstance.

Read conceded that there could be a stronger impact in Q1 or Q2 2012, but he "wouldn't bet against the supply chain," which he described as "very resilient." Read is confident that AMD can take back market share against Intel.

AMD has not issued a Q4 revenue warning and it appears that it is not seeing reasons to do so in the near future. The company will discuss its Q4 results on January 24 and recently scheduled its 2012 analyst day for February 2, which should bring more details how the hard drive shortage may or may not affect AMD's business. Analysts from IHS recently said that the overall hard drive supply will recover in the second half of next year, while IDC is more pessimistic and said that the effects of shortage may be around until 2013.

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  • surfer1337dude
    To be honest I havent rlly seen anything from this "Hard drive shortage" other then stores jacking up prices the day anyone uttered the word shortage.
    35
  • mangostea
    Signs of price fixing? I think so.
    30
  • A Bad Day
    "Hey Bob, our profit margins are too low."

    "Well, a flood in Thailand just took out most of the HDD's manufacturing facilities."

    "Call up our competitors. Time for some, price adjustments..."
    26
  • Other Comments
  • mangostea
    Signs of price fixing? I think so.
    30
  • Anonymous
    Doesn't hit AMD as hard since they have a small fraction of the overall business. Plus nobody is clamoring for FX cpu PCs so they don't have to worry about hard drives for them.
    -14
  • surfer1337dude
    To be honest I havent rlly seen anything from this "Hard drive shortage" other then stores jacking up prices the day anyone uttered the word shortage.
    35