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PC sales weaken on economic woes and mobile devices competition

July 20, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Computers, Ecommerce, internet, mobile phones, smart phones, Tablets, Technology Companies, Uncategorized

AMD (Advanced Micro Devices) has become the latest firm to warn of weaker than expected PC sales.PC sales weaken on economic woes and mobile devices competitionEconomic uncertainty, the rise of mobile devices, the dollar’s strength and the upcoming release of Windows 8 have all been linked to the trend.

The news follows a report by research firm IDC which suggested PC shipments to Asia Pacific had begun to shrink between April and June.

AMD discussed the problem in a conference call after it posted £23.6 million ($37m)  of net income for its second quarter representing a 39% drop on the previous year.

The company’s shares closed down 13% following the news.

“It is clear that global economic activity is slowing, and this is impacting the PC market,” chief executive Rory Read said, according to a transcript published by financial site Seeking Alpha.

“For the first time since 2001, client PC shipments have declined sequentially for three consecutive quarters and have been below historical averages for the last seven quarters.

“We expect macro headwinds will continue for the third quarter. We also believe the PC industry may be resetting to a new baseline and that full year industry growth estimates will be reduced.”

He added that weak sales of chips designed for desktop computers had first become evident in China before “spreading across the globe”.

The comments agreed with an IDC study which suggested that 30.7 million PCs were shipped to Asia Pacific, excluding Japan, between April and June. That marks a 1% fall on the same period last year.

IDC’s figures suggest that PC sales did grow in Europe, the Middle East and Africa over the same period, but only in light of poor figures the previous year.

1 Comments to “PC sales weaken on economic woes and mobile devices competition”


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