(Reuters) - Credit Suisse First Boston on Tuesday said it now sees a 14 percent decline in 2001 personal computer unit sales, a wider drop than previously seen, due to slack buying after the recent U.S. attacks, and a poor outlook for early acceptance of the Windows XP operating system. But CSFB analyst Kevin McCarthy said he still expects the 2002 global unit growth to be about 10 percent, although that figure is based on a lower 2001 base. PC industry experts were expecting a boost in XP-related sales, but CSFB said initial consumer interest appears limited.
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(Reuters) - Computer maker Gateway Inc. will phase out using microprocessors from Advanced Micro Devices Inc. and instead use those from Intel Corp., the world's largest semiconductor maker, as the PC maker seeks to cut costs in the face of weak demand. The San Diego, California-based company confirmed on Tuesday that it was making the move to Intel, whose chips it already uses, by eliminating its Gateway Select line, which used AMD's Athlon processors. Gateway has struggled with waning PC demand and has withdrawn from non-U.S. markets, a move it announced in the summer.
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(Reuters) - Advanced Micro Devices Inc., the chief rival to Intel Corp.in the market for microprocessors, said on Tuesday that it will cut 2,300 jobs, or about 15 percent of its work force, and shutter two chipmaking plants in a bid to cut costs. The plants will close Fabs 14 and 15 in Austin, Texas. About 1,000 of the job cuts are associated with closing the plants in Austin. The remainder of the cuts will come from cuts in Penang, Malaysia. As a result of the moves, AMD said it will take a third-quarter charge of $80 million to $110 million, adding that it expects to save $125 million annually.
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(CBS.MW) Sun Microsystems debuted the fastest computer in its lineup Tuesday in an effort to step up its marketing battle with high-end computer rival IBM. At an event in New York, the company unveiled its Sun Fire 15K Unix server computer, which has capabilities shared by some IBM mainframes, to an audience of technology industry executives and business media. The new machines, which come in different configurations ranging in price from $1.4 million to $4.1 million, are meant as a follow-on to Sun's successful Sun Fire 10K server line. The machines will be marketed mainly to large companies as less-expensive replacements for mainframes.
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