AMD Blames Poor PC Sales For $1.1BN Drop in Q3 Revenue (Doesn’t Mention Crypto)
Mike Sanders / 12 months ago
Typically speaking, most publically traded companies tend to reveal their Q3 revenue results on November 1st (or very shortly after). AMD, however, dropped a little bit of a surprise on the market yesterday by announcing their performance figures early. – Now, for those of you unaware, when revenue figures are discussed/revealed ahead of their normal schedule, this is usually a sign that things haven’t gone entirely according to plan.
And following a report via TheRegister, this appears to be the case as AMD has confirmed that its actual revenue for Q3 2022 is circa $1.1BN (yes, billion) down on their initial projections. Somewhat bizarrely though, the reason they’re giving for this is apparently due to an overall drop in PC sales.
So AMD, it has nothing to do with the cryptocurrency crash then?…
AMD Reveals Q3 Revenue is $1.1BN Below Their Projections!
It should be noted that, overall, AMD has still done well over the last quarter with year-on-year revenue up by nearly 30%. With that being said, however, with an original projection of $6.6BN revenue for Q3 2022, AMD has revealed that the actual figure is closer to $5.6 billion.
In an official statement, AMD CEO Dr Lisa Su said:
“The PC market weakened significantly in the quarter. While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain.”
A key factor which she didn’t even touch upon, however, is that their Q3 2022 revenue was undoubtedly based on the projection that cryptocurrency mining would continue to, at least in part, be a positive factor in sales. Following Ethereum switching to ‘proof of stake’, however, which has seen GPU mining pretty much die in one fell swoop, and in combination with what at best can be described as a stagnating Bitcoin value, this has clearly had a role to play in their overall revenue shortfall (whether AMD wants to admit it or not!).
Timing is Also A Factor
It should, of course, be noted that with the release of AMD Ryzen 7000 happening only 2 weeks ago, gaming consumers were hardly motivated into spending money on what was shortly set to become a last-gen platform. I know for a fact that I have no further interest in purchasing any late-in-the-day Ryzen 5000 upgrade unless prices for high-end models fall quite significantly (which, generally speaking, they have not).
It’s not dissimilar to the situation with graphics cards. GPUs are struggling to sell at the moment because people don’t want to spend high on current-gen tech when next-gen models are literally just on the horizon.
So, in regards to them blaming the revenue gap on a drop in PC sales, AMD undoubtedly has a moderate point here. – Let us reemphasise again though, while their Q3 2022 revenue is down, AMD is still doing well. Just clearly not as well as they originally hoped!
What do you think? – Let us know in the comments!