AMD’s Gargantuan Distribution Problem

Insider rumors are going around that Dell has scaled back on AMD orders by a significant amount. AMD is now slowing building inventory and is looking at the channel and small white box makers to fill in the gap. This was confirmed the other day by Hector Ruiz, AMD’s CEO. The problem is that the channel isn’t responding and had scaled down their AMD business. AMD had severe logistics problem late last year that a lot of these distributors did not take the risk and stopped pushing AMD based systems.
Expect AMD’s market share gains to stall on the mobile market segment this quarter while possibly losing share on Desktop and Servers. Channel is reporting another round of price cuts for the Desktop parts from AMD.