Feeds

AMD claws cash back from Intel

Squeeze to continue

Build a business case: developing custom apps

AMD may have flubbed the launch of its first quad-core processors but it managed to claw back a few points of revenue share against Intel in the first quarter of 2009.

Worldwide microprocessor chip revenues across all architectures and vendors, meanwhile, dropped off a cliff to hit $6.9bn, down 20.6 per cent from the $8.6bn in sales for CPUs in 1Q 2008.

That's according to market researcher iSuppli, who's provided both sequential and year-on-year comparisons on the heals of the economic downturn and churn in the x64 chip product lines. And, it can be argued, the sequential numbers are more important than the annual figures.

Compared to the fourth quarter of 2008, AMD's share of microprocessor revenues increased by 2.3 per cent, giving it 12.8 per cent, or about $883m in sales.

By contrast, Intel's share of the microprocessor racket dropped by 2.5 per cent to 79.1 per cent of the pie, or just under $5.5bn. This number includes all of Intel's chips, obviously, meaning Atom and Core desktop and laptop chips and Xeon and Itanium server chips.

Sequentially, other vendors peddling microprocessors accounted for $559m in revenues, or 8.1 per cent of the CPU pie. They gained two-tenths of a per cent share sequentially.

On an annual basis, the market shares hardly changed at all, with Intel actually gaining one-tenth of a point, AMD losing the same, and other vendors getting the same sized slice.

Matthew Wilkins, iSuppli principle analyst for compute platforms research, said AMD lost share sequentially to Intel in three out of four quarters in 2008 and AMD gained share across all types of processors in Q1 sequentially. AMD, though, got the most share back in the notebook sector.

"This was an impressive feat given the economic downturn and the weakness in the PC and server markets," Wilkins said.

Intel's gains in 2008 came in part from the growing netbook market and the increasing use of Atom processors in such machines, with strong server, desktop, and laptop chip sales making up the bulk of the revenues. Atoms were the icing on a three x64 layer cake with some Itanium filling, it would seem.

Wilkins said the contraction in the PC and server space in Q1 was what hurt Intel, but he didn't mention that part of the problem was that the Nehalem EP Xeon 3500 and 5500 server processors were not launched until the end of March.

AMD and Intel will be fighting tooth and nail for every chip sale, particularly in the second and third quarters as server and PC sales are down. iSuppli is forecasting that global microprocessor sales will drop to $28.6bn in 2009, down 15.8 per cent from the $34bn in sales in 2008. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.