A rare quarterly report of a major US corporation does not comment on the impact of exchange rates on the company's business and key financial indicators. In conditions where the bulk of sales are generated by foreign markets, and there is concentrated production of goods, a strong dollar is not very conducive to an increase in real revenue. In some cases, the situation is exacerbated by the fact that US companies keep free funds in offshore areas outside the United States. In the case of
Apple, for example, such investment has already become the subject of criticism from the authorities of the country.
At its meeting with analysts, AMD found it necessary to note that 90% of its money is held on American accounts. For this reason, AMD feels comfortable in moments of currency fluctuations and seasonal downturns. However, it is important to understand that the sales structure of AMD can not be very different from other companies that manufacture components for PCs and gaming consoles. The largest customers of AMD, as is known from the annual report, are in Japan and China, and the American
market is only the third largest in terms of revenue. Consequently, AMD depends to some extent on local currency exchange rates, as the company's pricing policy is not always fully able to compensate for their fluctuations. Moreover, with the same Sony, AMD has a long-term contract, in which the possibility of correction of prices is certainly strictly limited.
Last year, AMD completed with $ 1.26 billion of free funds. It can not be said that this is a huge amount, because the company is still working with losses, but AMD has placed no less than a billion dollars in the accounts of American banks, which means that the national economy has benefited from this. Related Products :
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