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AMD has blamed declining channel sales for short falling revenues in Q1.

AMD financials highlight importance of the channel

The chip maker warned yesterday that revenue figures for Q1 will more than likely fall short of the previously forecasted $1.6 billion to $1.7 billion figure.

According to Channel Register, AMD has confessed that it has lost focus of traditional channel partners since concentrating on the bigger business it received from so-called tier one OEMs such as Dell, HP and IBM.

While the larger contracts were indicative of a strong product line up from AMD, the shift in attention caused it to lose sales in the channel. "We let down our channel partners," said CEO Hector Ruiz.

Ruiz admitted that during the quarter rival Intel managed to snap up channel customers while its back was turned, claiming "We did lose share in the channel to our competitor."

The firm’s CEO also said that it would need to boost its x86 processor market share to thirty per cent if it is to post a profit. With $1.5 billion in the bank, he also said that the firm would need to keep its funds above $1 billion to retain its comfort zone.

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