Can someone explain why gross margin is down? Are PS5/X1X chips selling really cheaply? I can only see client CPUs going up in margins with Renoir.
Why is gross marging going down? It has increased constantly from 1Q19 to 1Q20 from 41 % to now 46 % (over all).
Additionally the new console SoCs are currently not within balance sheets. AMD said last year, that (only a small portion) will be seen as of 2Q20 and major revenue (generated by these SoCs) will affect financial numbers starting as of 3Q20.
Currently, still declining old SoC production/requirements are reducing the Enterprise, Embedded and Semi-Custom segment. The interesting part here is, that AMD says, that "
lower semi-custom sales " are "
partially offset by higher EPYC processor sales", which means, that their over-all Epyc sales are still quiet small.