Thursday, April 24, 2008

AMD, Intel Increase Revenue Share in Worldwide Microprocessor Market

Revenue market shares of Advanced Micro Devices and Intel Corp., the two main producers of x86 microprocessors in the world, increased again in the fourth quarter of 2007, recently released figures from iSuppli market tracking firm show. The results are logical due to strong demand towards PCs in general and notebooks in particular as well as addition of quad-core microprocessors into lineups.

In the global microprocessor market – consisting of x86, RISC and other types of general-purpose devices – AMD in the fourth quarter grew its share by 0.3% over the third quarter of 2007, whereas Intel increased its revenue share by 0.2% points sequentially, according to iSuppli’s final fourth-quarter ranking.

In Q4 2007 Intel’s revenue share in the market of central processing units (CPUs) was 78.9%, AMD’s revenue share was 14.2% and other producers of microprocessors commanded 6.9% sales of chips.

Combined, AMD and Intel accounted for 93% of overall processor revenues in the Q4 2007, up 1.6% from the fourth quarter of 2006. On an annual basis the two accounted for just over 92% of market revenue in 2007, a gain of 1.4% points from 2006.

“With strong PC demand in the fourth quarter, particularly in the notebook segment, microprocessor average selling prices (ASPs) for both AMD and Intel held firm. Global unit shipments of PCs in the fourth quarter rose by 14.2% compared to the same period in 2006. This strong demand, along with increased sales of higher-end microprocessors, helped to sustain ASPs,” said Matthew Wilkins, principal analyst for Compute Platforms Research at iSuppli.

However, when comparing the fourth quarter 2007 results to the same period in 2006, only Intel grew its share, with its slice of the microprocessor market rising by 3.1% points. In contrast, AMD lost 1.5% of worldwide CPU revenue share.

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