* AMD’s market share slipping
It’s been about four years since AMD introduced its 32-/64-bit Opteron processor. After a slow start, it’s been nothing but good fortunes for the chipmaker. Buoyed by Opteron, AMD stole market share away from formidable competitor Intel for several years. But things are changing.
After releasing disappointing earnings for the second straight quarter earlier this month AMD saw its market share slip.
According to market researcher iSuppli, Intel grabbed nearly 5 percentage points of share back from AMD in the first quarter of 2007. iSuppli pegs Intel’s share at about 80% for the three months ending March 31, compared to about 75% during the same quarter a year earlier. AMD, meanwhile, held about a 10% share, down from around 15% the year before, iSuppli says.
AMD recognizes its difficulties. Executives blame the $611 million loss on lower unit shipments and lower prices. Intel and AMD have been in a price war for about a year now.
Interest in AMD remains strong, however, and analysts still say its processors hold performance and thermal advantages over Intel, though the gap between the two is slimming. I wonder if AMD’s upcoming quad-core Opteron processor – code-named Barcelona – will help boost its fortunes. Intel has had its quad-core Xeon on the market for months now.
Intel, for its part, posted a profit of $1.6 billion, due in large part to cost cutting measures it began last year.
Considering how the AMD-Intel matchup is faring, it’s not surprising to see Sun, which also posted encouraging financials, forge tighter ties with Intel.
How is the AMD-Intel situation affecting your buying decisions? Let me know.
