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Thread: AMD has lowered down the Production in the First Quarter

  1. #1
    Join Date
    Jan 2009
    Posts
    96

    AMD has lowered down the Production in the First Quarter

    "AMD seeks to minimize their inventories of processors, reducing the production of the Q1 2009 well below the market demand expected"

    Among the information that emerged during the press conference for comment and analysis of financial results for the fourth quarter of 2008, AMD executives have made a leak that could justify the potential problems of supply of processors from this company during the second quarter.

    An action that is in fact taken by American producer to deal with the difficult current economic situation is to minimize the maximum light processor products, but also pass on the market since accumulated so far before it is subject to further devaluation.

    AMD's strategy seems to be to actually produce less processors than they are asked by the market during the first quarter 2009. While this strategy will reduce stocks to the lowest, the other would involve considerable difficulties by customers in having a processor to put on the market.

    Is not yet clear whether this type of intervention will be extended to all product lines, or limited to specific types of cpu. It clears that in the fourth quarter AMD has already begun operations to reduce production, in particular for processors for notebook systems for which the balance between demand and supply was not aligned markedly.

    In the short term this strategy could bring benefits to AMD in terms of a substantial reduction of its stock of processors, but it could also mean a total volume of sales even lower than the current international economic scenario could hope.

  2. #2
    Join Date
    Apr 2008
    Posts
    88

    Re: AMD has lowered down the Production in the First Quarter

    Less demand means groped to artificially raise prices...With the crisis raise prices is a suicide ...

  3. #3
    Join Date
    Feb 2008
    Posts
    54

    Re: AMD has lowered down the Production in the First Quarter

    It means that the market is firm and warehouse costs.
    For years, nobody wants to take stock but to order / produce only in order. The warehouse is a significant cost to high risk of devaluation.

  4. #4
    Join Date
    Jan 2009
    Posts
    99

    Re: AMD has lowered down the Production in the First Quarter

    we say that they want to make out a little stock in the warehouse who have, since the risks of producing processors at the cost 100 and, after six months of inventory, find products that have a market price equal to 80.

    the important thing is to have the ability to maintain availability (between production and warehouse) slightly exceeds the demand.

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