Bad week for chip makers

It wasn’t a good week for AMD Inc. or Intel Corp. Both suffered declines in revenue, but it was AMD that was hardest hit and being forced to announce layoffs.
The company said it had a net loss of US$157 million for the third quarter, and immediately announced a restructuring including laying off 15 per cent of its workforce — about 1,800 people — with the goal of saving US$210 million by the end of next year.
Intel had a profit in the quarter of US$3 billion, but that was a drop as revenue was down. It still remains the CPU market leader for desktops and servers, but the company said it’s being hurt by  the global economic slowdown. There may be more to it than that. Both companies are being hurt by the switch in buyer spending from PCs to smart phones, which are largely powered by chips from other companies.
What’s worrisome for Intel, as this story points out, is that it doesn’t expect huge sales in the next quarter of PCs running Microsoft’s new Windows 8 operating system, which will be released Oct. 26.  Meanwhile this report notes that AMD sales have been down for a number of quarters.      
The instability of CPU sales this year is troubling for both companies, but Intel has the resources to weather it out. AMD has always been behind Intel in market share. It will take skilled leadership to right the ship.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@]

Featured Articles

Stemming the tide of cybercrime

By: Derek Manky Technology continues to play a significant role in accelerating...

Power through a work-from-anywhere lifestyle with the LG gram

“The right tool for the right job” is an old adage...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now