Boston, MA 12\/17\/2013 (wallstreetpr) –\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) manufactures semiconductors and processors used in PCs and mobile devices. The market values the company at $2.60 billion against its 723.66 million outstanding common shares.<\/p>\n
The company has announced the launch of its new R7 260 chipset that is believed to be affordable and targeted at the lower-end market. But this is happening at a time when the company is facing decline in sales and possible drop in revenue and profits.<\/p>\n
The troubles faced by\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) are related to the competition in the market and high operating expenses. AMD has control of its expenses but it can do little to control competition. As for expenses, the company is trying to drive down costs by adjusting its workforce.<\/p>\n
But on the competition side,\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) appears susceptible to Intel Corporation (NASDAQ:INTC)\u2019s growing influence in the PC and mobile chip market.<\/p>\n
Launching a product that is aimed at the lower-end market is a strategy that AMD is trying to apply in efforts to repel the competition impact fronted by Intel. INTC is now using its technology and financial might to control lower-end and high-end chipset markets.<\/p>\n
The weakening position of AMD has been noticed by equities analysts who are trimming their price target and performance rating of the company.\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) is expected to continue struggling in the market given its low-margin games consoles and the generally weakening PC segment.<\/p>\n
In the most recent quarterly data released Oct. 17, the chipmaker reported 4 cent EPS and managed to exceed the expectation of Thomson Reuters. Its revenue figure also topped consensus estimates at $1.46 billion against $1.41 billion. Compared to the same quarter last year, AMD\u2019s revenue was up 15 percent but earning fell significant from 20 cents.<\/p>\n
The company\u2019s position in the market is apparently weakening even when most other semiconductor manufacturers are raking in billions of dollars due to the high demand and prices of chipsets. The concern is whether AMD will be able to stumble on a turnaround strategy before all goes awry.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 12\/17\/2013 (wallstreetpr) –\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) manufactures semiconductors and processors used in PCs and mobile devices. The market values the company at […]<\/p>\n","protected":false},"author":12,"featured_media":12991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[2041,3331,420,419,596,1900,597,595],"stock_ticker":[],"class_list":["post-12990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-advanced-micro-devices-inc-nyseamd","tag-advanced-micro-devices-inc","tag-amd","tag-intc","tag-intel-corporation","tag-intel-corporation-nasdaqintc","tag-nasdaqintc","tag-nyseamd","entry"],"acf":[],"yoast_head":"\n