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AMD Sees Q2 Revenue Slide, Says Llano Sales In Channel Are Down

By Kristin Bent
July 19, 2012    6:33 PM ET

Page 2 of 2

Though its Computing Segment as a whole took a hit, Read said shipments of its mobile processors were up compared to the year-ago quarter. Sales of its low-power Trinity APUs, which are optimized for notebooks and Ultrathins, AMD’s answer to Intel’s Ultrabook line of super-thin notebooks, sold particularly well, with shipments nearly doubling from last quarter.

OEMs HP and Samsung were the first out of the gate with Trinity-based Ultrathins this year, and another wave is expected to launch when Windows 8 becomes available this fall.

"We are also seeing good response to recently launched Trinity systems, including the first Ultrathins from HP and Samsung that hit the mainstream price points," Read said. "We expect a second wave of Ultrathins will launch in the second half of the year aligned with Windows 8."

Read said during AMD’s first-quarter earnings call in April that Ultrathins will be able to compete against Intel’s Ultrabooks because they will be priced more aggressively and targeted at more "mainstream" users.

AMD predicted its third-quarter revenue to decrease by 1 percent sequentially, and its yearly growth numbers to see a dip as well, as demand continues to wane in the global PC market.

"We expect macro headwinds will continue for the third quarter," Read said during the call. "We also believe the PC industry may be resetting to a new baseline and that full year industry growth estimates will be reduced."



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