Apple had assembly line problems so the Texas plant is not anything close to full production. This delay was a major reason for the lower than expected Q1 revenue. Hopefully be Q2 we will see Apple up and in full production. This leads me to believe that Q2 will have much better earnings.
Sentiment: Strong Buy
AMD pays for the chips on delivery and rebates for bad units, so anything they shipped to Apple in the last quarter should have been booked as revenue in the last quarter (unless Apple's payment hasn't come in) regardless of what Apple does with it after its delivered.
And yeah, the delays suck. I'm ordering an almost all up unit (8 cores 32G ram GPU's and digital drive maxxed) and it looks like even if I ordered it now I wouldn't see it for almost 2 months. I'll wait a bit, my current workstation is adequate, it's just bulky to have in a bedroom. The new unit is VERY sleek.
What lousy business. 250k units a quarter is NOTHING. Apple sells millions of iMacs and tens of millions of MacBook Pros with nVidia GPUs each quarter by comparison. What's that, $50 million in income to AMD at zero margin? Maybe this is why Rory leaked that margins were about to crumble on the CC.
Nobody's buying Mac Pros. They're dumb. Overpriced, only fit into a very specific stylistic milieu, and don't bring any sort of performance advantage.
Apple has lost its touch.
1.1 million units is trivial. Less than double the volume of the old, dusty Mac Pro offering.
On the other hand, Mac Book Pro and iMac sell in volumes 6 to 12 times that projected for the new Mac Pro, and AMD lost that business to nVidia.
$2 billion due in 2015 and no means of repaying it due to crumbling business prospects. AMD is really dying!