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.