There was a "channel check" report issued by John Peddie Research on the graphics market that spilled the beans on how AMD's APU business was doing in the current quarter. The findings were that AMD is getting CLOBBERED by both Intel and nVidia; an acceleration of the trends that have already left AMD a hollow shell of a company.
Juicy comments included:
AMD's notebook APU sales are down a whopping 17% versus the same time last quarter. Think about that. We have Windows 8 and the holiday buying season, and the drop off of demand for APUs not only continued but has picked up steam.
Quarter-on-quarter sales of AMD desktop APUs fell 30%, AMD notebook APUs slid 4.7%, and overall AMD PC graphics shipments were down 10.7%. Recall that last quarter witnessed a massive inventory write-down, a 50% drop in margins, and a 10% revenue miss. It looks like worse is in store for AMD in Q4.
But it makes sense, really. No one wants to be stuck with junk from a loser. The closer AMD gets to going teats up in the mud, the fewer and fewer buyers will accept an AMD component in their system. Failure begets failure, and failure at AMD is chronic, monumental and cultural. AMD will take some more butt-gaping tomorrow, too. $1.50 is the credible near-term target.