AMD Warns... Again!

It appears that AMD is looking at such a massive loss for Q1 that they had to do it twice. Warning once shows that a company is going through a difficult time. Warning twice points to a much serious condition and shows that the company's problems are growing uncontrollably.

AMD also announced capital expediture cut backs and restructuring in 2007. So like the rosy 2007 prediction Scientia wrote in his early blog, AMD once again proves him incorrect in his claim that AMD is to catch up with Intel at 45nm. Other news also points out how AMD is letting go most of ATI employees. I think its fair to say that AMD has lost the price war. Unfortunately this time, Intel isn't done yet.

AMD WARNS! ... AGAIN! - Financtial Times

"Advanced Micro Devices Inc. says it expects to report revenue of approximately $1.225 billion (US) in the quarter ending March 31, 2007 (1Q07). The chipmaker says its' revenues declined sharply quarter-over-quarter for the computing solutions segment, primarily due to lower overall average selling prices (ASPs) and significantly lower unit sales, especially in the re-sale channel. " http://www.echannelline.com/usa/story.cfm?item=21876

..."But Intel is in such a good position right now even when Barcelona comes on stream, Intel is opening up such a big process/manufacturing advantage that AMD is always going to be behind," he said. "That it can decide to do enough damage to peg AMD at a certain portion of the market for years to come, by hitting AMD so bad that it has to compromise R&D, product development and process/manufacturing investment.
"If the AMD announcements changes from reducing discretionary expenditures and freezing hiring to cutting back on capital investment to cutting R&D and product development teams, then you'll know this is happening."