Tomahawk, WI 12/04/2013 (BasicsMedia) – Advanced Micro Devices, Inc. (NYSE:AMD) operates as a provider of global semiconductor products, with its operations spread all over the world. It is the number two chipmaker in the world, but has not had the best of times in 2013, where it has had to carry out a number of painful decisions. The company has reduced its workforce, not once, but twice already in 2013 and there is reason to believe that more workers could be sent home in the coming months. It attributes this depressing environment to a number of factors, some of which are beyond it.

AMD Blames Poor Performance on Dwindling PC Sales

Advanced Micro Devices, Inc. (NYSE:AMD) relies mostly on the sale of personal computers in order to raise the level of revenues it needs to make profits, and be attractive to investors while fulfilling its obligations to Wall Street. The only challenge for AMD is that mobile gadgets enjoy better sales than personal computers yet it needs the latter for survival. AMD can do something about this by making chips that are useful in mobile gadgets, instead of laying too much emphasis on semiconductors that are only applicable for personal computers. It has to find ways of diversifying its range of products.

Advanced Micro Devices, Inc. (NYSE:AMD) also blames the poor performance and the fact that it had to send a significant portion of its workers home due to lack of work, on the fact that the company has to contend with poor orders from its clients around the world. What is more, is the fact that some of the customers wait until the very last minute to place their orders at AMD, and this ends up affecting its ability to serve these orders right on time.  A large portion of customers appear unconvinced about the need for piling their stock of chips, and this has not augured well for Advanced Micro Devices, Inc. (NYSE:AMD) too.

Other Factors Responsible for AMD’s Poor Performance

The other reasons that Advanced Micro Devices, Inc. (NYSE:AMD) blames for the poor performance at this point in time is the fact that there is a lot of uncertainty around regarding the U.S government’s policies.  The struggling European economies have not made things any easier for AMD, hence forcing it to carry out some of the unpopular decisions it had to in 2013. China was expected to do a lot better than other global economies, but it has also shown its weak side in recent months and days thus affecting Advanced Micro Devices, Inc. (NYSE:AMD)’s ability to earn as much revenue as it would have wanted.

All the factors listed above have convinced customers not to place as many orders as they would normally do at this time of the year. The company had also announced its intention of winding down its cell phone chip business, and once this decision is implemented, it expects the revenues to continue dropping like never before. To offer proof of how poorly the company has performed, it recently posted losses amounting to $474 million in its latest quarterly financial results. It is difficult to tell precisely when the company will post profits due to these factors.

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