Intel Recouped Market Share From AMD In Q1

The sales gap between the two companies widened to a much greater degree than expected by analysts at iSuppli.
Intel increased market share in the first quarter at the expense of rival Advanced Micro Devices.

Intel boosted its share of global microprocessor revenues 4.5% from the fourth quarter to 80.2% of the total market, industry analysts at iSuppli said on Friday in a report. AMD, on the other hand, lost nearly the same amount, falling to 11.1% of the market from 15.7% in the previous quarter.

The sales gap between the two companies widened to a much greater degree than expected by iSuppli, growing to 69.1 points from 60 points in the fourth quarter. Intel's share gains came primarily from its strategic line of Core 2 Duo products, which make up the company's mainstream family of dual-core microprocessors.

"This represents a major reversal of fortune compared to 2006, when AMD had the advantage with its popular dual-core microprocessors and gained share from Intel," iSuppli analyst Matthew Wilkins said in a statement.

The findings were not surprising, given the first-quarter financial results reported by the companies this week. Intel posted a solid performance in the seasonally slow first quarter, reporting a 19% increase in earnings, and a 1% dip in revenues. AMD, on the other hand, swung to a loss of $611 million, as revenues fell 7%. The earnings report was so dismal, that analyst Chris Caso of FBR said in a report that the chip maker was within two quarters of running out of cash.

While Intel's worldwide revenues declined by 12% in 2006, losing share to AMD for most of the year in the server and consumer markets, Intel is expected to regain its losses this year, according to Gartner.

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