AMD took bigger slice of x86 server market in Q3

High-value chip focus pays off?

  • alert
  • submit to reddit

The essential guide to IT transformation

AMD saw its processor market share rise to its highest level in almost three years during Q3, market watcher IDC said this week.

The chip maker took 9.9 per cent of the revenue the x86 processor industry took from customers during Q3, up from 8.5 per cent in Q2, with its average processor price rising ten per cent quarter on quarter.

It's also shipping more CPUs than before - but that it's doing so is almost entirely down to its server products. Its share of the x86 server market grew from 6.9 per cent in Q2 to eight per cent in Q3, IDC said. However, its share of both the desktop and the notebook chip markets rose by less than a single percentage point in each case, to 18.4 per cent and 9.3 per cent, respectively.

Between Q2 and Q3, Intel's share of the number of x86 processors shipped fell by half a percentage point, from 81.7 per cent to 81.2 per cent.

AMD's shift under CEO Hector Ruiz, to focus less on winning big chunks of the market from its arch-rival and more on building a firmer financial footing through higher-value products, does appear to be working, IDC's figures show.

That's not to say the company can't grow its share of the number of processors shipped, but that's inevitably a much harder goal to achieve and certainly one made easier to do so if AMD can show that, as a company, it's much more financially stable. And that means driving revenue and earnings.

AMD worldwide sale chief Henri Richard told Reuters last month that the company will come out of 2005 "a significant player in the enterprise segment".

"I see no reason why we couldn't capture a third of the server market," he said.

He will have to work hard during the coming year. Opteron's share of the x86 server market, even in Q3, is well below AMD's overall server share of eight per cent - there are still a lot of low-priced Athlon MP-based boxes shipping - and Opteron is now up against EM64T-enabled Intel Xeon processors, of course. ®

Related stories

Sun begs partners to sell more Opteron servers
AMD roadmap drops Athlon XP
How MS will end the Dell - Intel love-in
AMD ships Mobile Sempron 3000+
AMD's Opteron loses ground where it kind of counts
AMD updates roadmap
Dell 'to add' AMD CPUs to product line - CEO
AMD signs foundry for 64-bit CPU production
AMD grabs Intel market share in desktop arena
AMD to overtake Intel in 2017...

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story


Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.