The coronavirus pandemic has brought an exponential rise to the tech industry, largely driven by quarantines and people working from home.
Just over two years since the beginning of the pandemic, sales are no longer the same, not to mention the problems caused by the electronic components crisis, which caused several products to be out of stock in stores. According to AMD, this is heavily affecting the PC market and causing it to collapse.
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Pat Gelsinger, CEO of Intel, recently commented that the company expects a 10% or more drop in sales between July and September 2022, which could be the worst half of this fiscal year for the company.
Echoing Intel’s negative forecast, AMD this week warned of the collapse of the PC market, which is falling rapidly after peaking during the coronavirus pandemic and, consequently, severely affecting the finances of major PC component manufacturers.
Lisa Su, CEO of AMD, presented at a conference for investors and analysts the company’s latest financial report, where she highlighted the cooling of the PC market and how it will continue in a slow decline.
We opted for a more conservative perspective on the PC market. Three months ago, we believed that the PC market would drop by, let’s say, high single-digit percentages. Our current outlook for the PC market is that it will continue to decline, possibly by more than 10%.
The last quarter showed AMD within Wall Street’s expectations, but the next quarter could be even worse.
The video game market, which also surged during the start of the pandemic, also saw a drop in sales in the last quarter, which means that the tech business as a whole is suffering.
It is worth remembering that the falling numbers are a comparison with the rise of previous years, so companies are only returning to “normal” before the pandemic.
Does this mean a reduction in prices and the normalization of inventories?