AMD Shares Drop
The shares of AMD, a leading manufacturer of computer technologies, has slipped by a massive 7 percent after the company announced that its Q3 revenue will be down by 10% compared to Q2 revenue.
This news comes after analysts were predicting that AMD's revenue was set to his $1.38 billion, but according to the latest announcement from AMD, it is likely to come in under $1.3 billion for this quarter. Their gross margin will also be much lower than expected at 31 percent, rather than 44 percent.
While analysts may be stating that this is due to widespread problems, not just for AMD but for the whole industry. AMD are blaming their recent downturn on weak demand for their products.
It's not expected to pick up soon either, even with the launch of Windows 8 on the horizon the launch of the OS isn't expected to shift many hardware units. With many efforts to sell new hardware in the form of things like ultrabooks and the latest generations of CPUs, the AMD and likely the Intel camp can't ignore the business that is shifting to the tablet market. This is of course bad news for Intel and AMD alike given the rise in use of ARM processors and other alternatives to the two CPU giants.