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AMD cuts 3Q guidance, blames weak consumer sales

AMD cuts 3Q guidance, blames weak consumer sales

Advanced Micro Devices Inc. has lowered its third-quarter outlook, supplying fresh evidence that consumers’ penny-pinching on personal computers has led to a painful back-to-school shopping season for some technology companies.

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AMD is the world’s No. 2 maker of PC microprocessors, the “brains” of those machines.

Its announcement Thursday reinforces a message the computer industry has been sending for the past month: stubborn unemployment and worries that the global economic recovery is sputtering have caused many consumers to close their wallets when it comes time to buy a new PC.

Custom Written Business Plans That’s a reversal from the worst of the recession, when consumers’ clamoring for “netbooks” and other inexpensive computers helped the industry tread water while corporations choked off spending on new technologies. The sides have now flipped: flush with sizable cash hoards, corporations have freed up their budgets and are spending again, while many consumers are girding for prolonged unemployment and are being more cautious about the technology they buy.

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