AMD Picks Up Market Share from Intel

AMD logoThe global PC market continues to take a beating at the hands of the economic recession around the globe. As PC sales fall to the lowest point in years in many categories, the sales of microprocessors in both consumer and business computers and servers are also falling.

The global PC market continues to take a beating at the hands of the economic recession around the globe. As PC sales fall to the lowest point in years in many categories, the sales of microprocessors in both consumer and business computers and servers are also falling.

ISuppli has released its numbers for the microprocessor industry for the first quarter of 2009. The research firm reports that Intel's four-quarter long growth streak has ended with the world's largest chipmaker seeing a decline in sales and market share.

Intel saw its market share drop by 2.5 points for the quarter with its share of the global processor revenue dropping to 79.1% from 81.6% in Q4 2008. AMD took advantage of Intel's situation and grabbed up nearly all of Intel's lost market share. AMD grew its market share by 2.3 points to 12.8%, up from 10.5% in Q4 2008.

Matthew Wilkins from iSuppli said in a statement, "After losing share to Intel on a sequential basis during three out of four quarters in 2008, AMD managed to reverse the trend in the first quarter of 2009. AMD increased its allocation of global microprocessor revenue due to strong performances in each area of its microprocessor portfolio, particularly in its Notebook products. This was an impressive feat given the economic downturn and the weakness in the PC and server markets, which caused global microprocessor revenue in the first quarter to decline by 20.6 percent to $6.9 billion, down from $8.6 billion during the same period in 2008."

Despite Intel losing market share on a quarter-to-quarter basis, the chipmaker sill posted a slight growth year-over-year compared to the 79% market share it held in Q1 2008. ISuppli reports that the decline in market share seen by Intel is a result of a contraction in the PC and server markets. Both Intel and AMD saw revenues decline over the quarter. Intel has the Atom processor to thank for much of its performance.

"Intel widened its lead in 2008 partly due to its Atom microprocessor, which has achieved major success in the fast-growing netbook PC market,” Wilkins said. “However, the strength of Intel’s broad product line in microprocessors for desktops, servers and notebooks was the major factor driving its success.”

2009 has been an important year for AMD. The firm spun its foundries off into a new company and more recently it unveiled the world's first DirectX 11 GPU.

Source: DailyTech

Tags: AMD, CPUs, Intel

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