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7/1/2008
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Intel Dips, AMD Gains In Year-To-Year Market Share

ISuppli estimates that about half of AMD's year-to-year growth came at the expense of Intel, with the remainder from smaller chipmakers.

Intel and rival Advanced Micro Devices had a mixture of market-share gains and losses in the first quarter, a research firm said Tuesday.

When compared with the fourth quarter of last year, Intel upped its revenue share 1.2% to 79.7%, while AMD lost 1.1% to 13%, iSuppli said. However, year-to-year the results were reversed. Compared with the first quarter of 2007, Intel's share dipped 0.7%, while AMD's share increased by 2.2%.

"Intel was the short-term winner in the first-quarter microprocessor market," iSuppli analyst Matthew Wilkins said in a statement. "But over the previous 12-month period, the trend is reversed, with AMD growing its share."

ISuppli estimates that about half of AMD's year-to-year growth came at the expense of Intel with the remainder from smaller chipmakers. This was a result of AMD's product portfolio becoming much stronger over the last 12 months, particularly for desktop computers, Wilkins said. "Customers clearly are responding to AMD's moves."

At the beginning of the year, AMD added quad-core Phenom desktop processors to its product line. It has also added tri-core and dual-core processors for the "prosumer" and business markets.

For the PC market as a whole, the first quarter was better that iSuppli had expected. Shipments jumped 12.1% from a year ago to 69.9 million units worldwide, according to the researcher. Notebook shipments were particularly strong, growing 30%. ISuppli has predicted a 10.5% increase in PC shipments for all of 2008 over 2007.

Intel and AMD reported that average-selling prices did not decrease in the first quarter from the fourth, an indication that the pricing war between the two rivals has abated, iSuppli said.

Small players in the chip market have lost market share to Intel and AMD over the last 12 months. Combined, the two companies accounted for 92.7% of total microprocessor revenue in the first quarter, up 1.4% from the same period a year ago.

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