| SAN FRANCISCO
SAN FRANCISCO Nov 27 Results from the U.S.
Thanksgiving weekend look encouraging for PC sales although it's
too early to made predictions about the entire holiday shopping
season, and the PC industry still faces long-term problems, the
CEO of chipmaker Advanced Micro Devices said.
The growing popularity of Apple's iPad and other
tablets have sapped demand for PCs, and with economic growth
slowing in China and struggling in Europe and the United States,
global shipments are expected to decline slightly this year, the
first annual drop since 2001.
"We've seen some positive news out of Black Friday over the
past several days," AMD Chief Executive Rory Read told investors
at a conference in Scottsdale, Arizona on Tuesday. "Our
performance over that period looked reasonably well but I think
it's a little early to call the holiday season."
Read reiterated that he does not expect the PC market, which
accounts for about 85 percent of AMD's business, to recover for
Manufacturers have been betting Microsoft's
long-awaited launch of its Windows 8 platform in October will
help drive PC sales this holiday season. But Read said the
operating system's release came at an awkward time and held up
inventories going into September, when manufacturers are
normally busy building PCs for the holiday season.
One of Silicon Valley's oldest chipmakers, AMD has been
laying off engineers while looking for new markets for its chips
as it faces depleting cash reserves.
It has hired JPMorgan Chase & Co to explore its
options, although an outright sale of the company is not the
main option, according to sources.
Sales over the Thanksgiving weekend and the holidays in
general are closely watched by investors. U.S. retailers can
generate a third of their sales and up to half of their annual
profit in November and December.
Like its larger rival Intel, Sunnyvale,
California-based AMD was caught flat-footed in recent years with
the emergence and fast growth of mobile devices.
Shares of AMD were up 0.53 percent at $1.88.