Intel Wipes Out AMD’s 2006 Marketshare Gains in One Quarter

News Posted 25/04/07
Author: PV5150
Source: DailyTech

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It’s a widely known fact that AMD are in some major financial troubles at the moment. According to Mercury Research numbers , Intel has eroded away AMD’s market share gains from 2006 in just one quarter. With the ongoing price war between the two chip giants clearly showing no signs of abating, it makes you wonder how long AMD can continue meet Intel punch for punch.

The strong performance by Intel in Q1 represents a whopping 6 percentage point increase from the 74.4 percent share that the company held during Q4 2006. The increases per segment come in at 8 percent for the desktop market, 4 percent for the notebook market and 7 percent for the server market.

Intel erased all of AMD’s 2006 gains and pushed the company back under the 20 percent threshold. Analysts for JP Morgan reported that “Intel’s superior products and aggressive pricing took their toll on AMD. We expect AMD to lose additional share during (the second quarter).”

Intel’s agressive pricing structure; AMD’s oversupply of OEMs with processors when they couldn’t deliver on sales forecasts, and at the same time leaving channel partners out to dry with processor supply have all contributed to AMD’s financial woes. As it stands, AMD’s Q1 2007 resulted in a net loss of US$611 million dollars .

I’ll be the first to admit that competition is healthy and typically good for the consumer. But, AMD had better pull something special together very quickly, for fear of losing the race altogether.

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