After the warning left by Intel, we now have AMD warning of the collapse of the PC market, which is slowing down rapidly after the peak recorded during the COVID-19 pandemic and is severely affecting the finances of the main PC component manufacturers.
Lisa Su, CEO of AMD, presented the latest financial report to investors and analysts at a conference in which she spoke about the slowdown in the PC market and how the forecast is to continue to see a slow but certain decline.
“We opted for a more conversational perspective on the PC market. We would have thought the PC market would go down three months ago, let’s say high single-digit percentage. Our current outlook on the PC market is that it will continue to go down, let’s say, in a percentage above 10.”
The most recent quarter showed AMD within Wall Street’s expectations but believes the next quarter will worsen as the PC market slowly weakens.
Before AMD warned that the PC market is experiencing significant drops, we had Pat Gelsinger, CEO of Intel, warn that the company expects a drop of 10% or more from July to September 2022, which they expect to be the worst quarter.
The last 3 months of 2022, with the festive season, are seen as an opportunity to improve the PC market, but the results between April and June resulted in an 8% drop in the value of Intel’s shares. Since it expects to drop further between July and September, Intel is not excited about the outlook.
PC sales dropped 15.3% from 2021, and the number of units shipped to stores dropped for the second quarter. This causes stores to reorder, which leaves companies with more inventory, fewer sales, and a need to adjust production management.