AMD vs. Intel sales

Interesting front page article. AMD market share in the first quarter of 2003 was 16.6%. Compare that to first quarter of 2005 which was 16.9%. Not much of a difference. What that means is that Intel currently still totally dominates with 83.1% of the market share.

http://www.overclockers.com/tips00794/

batboy said:

Interesting front page article. AMD market share in the first quarter of 2003 was 16.6%. Compare that to first quarter of 2005 which was 16.9%. Not much of a difference. What that means is that Intel currently still totally dominates with 83.1% of the market share.

http://www.overclockers.com/tips00794/

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That's really too bad since AMD has had so many opportunities to cut into that market. Unfortunately with such stupid business practices, AMD is content to stay right where they are. Until they get some new blood in that company with progressive thinking, AMD will always have a little tiny corner of the market and that's it.

Pedantic point - but dont Via and Transmeta sell cpus too so the Intel %age whilst not far off 83.1% will not be exactly that much. (Probably a couple of percent less)
End of the day Intels strength and available revenue to spend on marketing and channel links far outweighs AMDs superiority in actual products (except the mobile segment that is )
Its gives Intel a virtuous cycle and one that is very difficult (some might say impossible) for a company of AMDs size to break not matter what Intel put out as products.
The more erudite may say that Intels superiority in the mobile segment and the fact this is the most rapidly increasing product segment are not coincidence. (Another reason why Intels decline year on year is less than 2%).

One thing to note, is that Amd is selling processors with a higher profit margin then before. So even though their marketshare is not growing, their profits might be...

Intel
1.Brand Recognition
2.Better Supply Lines/ Distribution Channels
3.Major OEM PC manufacturer accounts

People will pay a Premium for Intel Product. Intel is the 800lb Guerilla of the Processor world. You cant stop them, you can ONLY hope to contain them.

A multitude of significant events would need to take place in order for AMD to EVER see a chance to regain many, MANY years of lost ground.

dropadrop said:

One thing to note, is that Amd is selling processors with a higher profit margin then before. So even though their marketshare is not growing, their profits might be...

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True enough, but it might just be that their losses aren't as great as they used to be.

Well, it seems they are at least making a push in some of the server segment

(doubled marketshare 13% to 27% in only 2Q in quad CPU market!)

http://www.xbitlabs.com/news/cpu/display/20050613204719.html

This isn't really a suprise.

Regarless of the cause of increased profit, I see increased margin as a good sign. This opens up capital to increase production, R&D, or whatever is needed and shows investors and creditors that AMD is making money in an extremely competitive market. I've always liked the underdog and continue to be impressed with AMD's abilites as one.

OC Detective said:

End of the day Intels strength and available revenue to spend on marketing and channel links far outweighs AMDs superiority in actual products (except the mobile segment that is )

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Yeah that's a good point. AMD has a lot to overcome, but if they continue making superior products, they will continue to gain market share. They have increased their market share for 4 straight quarters, so things are headed in the right direction, but just maybe not fast enough. Who knows what will happen in the next 4 years, AMD might gain another .3 percent or they might find a way to take a big chunk of Intel's market share.

the thing here that kind of sucks is that when amd does come out with a innovation that gives them a step up intel isnt too far behind to make use of said idea. intels roadmap that plans to start using hypertransport (had to spell it out so nobody replied with "only intel has hyperthreading!") by 2007 is interesting and a good thing for the consumer but it will no doubt take away a bit of the "edge" that amd has enjoyed performance wise over intel. this goes both ways of course as they both borrow and take ideas from each other it just hits amd harder when intel borrows something from thier side of the camp rather than vice versa.

lately it seems like intels been working overtime trying to think things up just to think them up. i have alot of faith in thier development teams dont get me wrong it just seems like lately the marketing team has been the ones who dictated the design of the cpus (prescott is a great example of a incredibly inefficient cpu that has been sold in droves) where they shoot more for a raw mhz to woo the customer with numbers more than trying to bring more power to the clock cycle (a great example is how a intel would spin its wheels really really fast in the mud while amds cpus just take off from the line. the intels wheels are spinning faster but whos getting more done). they are thankfully moving away from this as they look more into thier old pentium 3 based dothan cores and getitng away from netburst architecture . ddr2 is good for another chuckle as its benefits have eluded me throughout the various kits of it ive owned. how many people are going to go to ddr2 as opposed to just going from ddr to ddr3 even with the denser memory and less power consumption they dont justify the change to me (particularly since ive yet to find the benefit of running the memory faster than the system bus other than to point out e-penis size)

maybe we'll hear more of the ibm/toshiba joint venture (think those are the big 2 involved) as the chips theyre working on sound pretty amazing themselves.

dropadrop said:

One thing to note, is that Amd is selling processors with a higher profit margin then before. So even though their marketshare is not growing, their profits might be...

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According to the last annual statement, revenue growth & net cash flow is actually down.

AMD

Qtrly Revenue Growth : -0.80%
Qtrly Earnings Growth : -138.60%
(= year over year)

~ Change In Cash and Cash Equivalents

- for 2002 ... + $1,460
- for 2003 ... + $678,344
- for 2004 ... - $49,806

In my opinion AMD will become more competitive once the new production
facility opens. Right now they simply can't put out the volume larger customers like Dell require.