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AMD Tops Intel in U.S. Retail Sales

jimmydins writes "According to digitimes.com, AMD Surpassed Intel in US Retail Sales for the month of September." From the article: "After facing what seemed an insurmountable decline in desktop PC sales during the first six months of 2005, Advanced Micro Devices (AMD) captured a 52% share of the US retail desktop PC market in September, according to Current Analysis. AMD's performance during the back-to-school shopping season topped chip giant Intel's 46% share by six points, said the market research firm. Despite its past successes in surpassing Intel desktop sales in select retail sales weeks, September 2005 marked the first time AMD was able to outperform Intel for an entire month, the research firm stated." In order to keep this in perspective, C|Net points out that this doesn't include direct PC sales, so no Dell sales are included in these numbers. Good showing for AMD just the same, though.

22 of 257 comments (clear)

  1. No Direct Sales? by CynicalGuy · · Score: 4, Insightful

    Seems like an incredibly flawed survey.

    1. Re:No Direct Sales? by Anonymous Coward · · Score: 5, Insightful

      I think the fact that they beat out Intel in the retail market is a good indicator of the validity of their lawsuit against Intel. With a (reasonably) level playing field, AMD wins - Intel may have some explaining to do about the direct sales arena.

    2. Re:No Direct Sales? by Martin+Blank · · Score: 4, Insightful

      From the other view, it may suggest that AMD just needed to mature enough to create demand. The retail market has always been much more fluid than the direct sales market, and this could simply be a sign that AMD needed to be more patient as it pushed ahead.

      Note that I run AMD chips in two of three computers. I like AMD quite a lot. Just playing devil's advocate.

      --
      You can never go home again... but I guess you can shop there.
  2. Numbers, the new hot Christmas toy! by dada21 · · Score: 5, Insightful

    Fun to play with numerical, isn't it?

    What a ridiculous article. Retail sales are meaningless without integrating direct sales (Dell, etc). I run two retail stores (not in IT) and if you based anything on my sales and ignored our e-commerce competition, you'd be predictably wrong.

    First, retailers will generally maximize margins buy promoting less expensive costing products. E-commerce generally runs tight margins on everything.

    Example: Intel Retail PC retails for $799, cost is $619. AMD Retail PC retails for $749, cost is $549. The retailer sees a $10 better margin on the AMD but reduces gross sales. Which one will the consumer pick, generally? Whatever is cheap.

    Don't believe any sales figures any more. They're ignorant of the true market, which is retail, e-commerce, eBay, and buying in pieces from your local OEM "wholesaler."

    Just basing figures like these on whatever market gives you the best results is more to keep shareholders happy.

    1. Re:Numbers, the new hot Christmas toy! by Anonymous Coward · · Score: 2, Insightful

      But as the previous poster points out... Have they?

      Most customers that come into a Best Buy to buy a computer have no idea what they want technically. The sales person tells them what they want and they look at the price tag. That's it!

      So at best you can say that AMD has captured a significant portion of people's thriftyness :) And that is only in situations where people go into a store to buy a computer, and that segment of the population is the LEAST knowledgable (AMD? Intel? Whassat? I want a computer!) segment there is.

    2. Re:Numbers, the new hot Christmas toy! by Bellum+Aeternus · · Score: 4, Insightful

      It means something important. When people have a choice they're starting to trust and buy AMD. This is very bad for Intel. When mega-retailer Dell isn't making the decision for the comsumer, the consumer is buying AMD.

      --
      - I voted for Nintendo and against Bush
    3. Re:Numbers, the new hot Christmas toy! by CSHARP123 · · Score: 4, Insightful

      Just basing figures like these on whatever market gives you the best results is more to keep shareholders happy.
      I agree with you on the survey being meaningless. But AMD is keeping their shareholders happy. You need to chech the 3rd quarter profits
      To Quote "For the quarter ended Sept. 25, sales of chips that power servers, desktop computers, and laptops leaped 44% to $969 million. The division posted operating profit of $209 million, up from $89 million a year ago. "

    4. Re:Numbers, the new hot Christmas toy! by Jeff+Molby · · Score: 2, Insightful

      That's a bit exaggerated. It's true that most retails consumers are incapable of spec'ing a computer, but the vast majority of them have long been aware of the brands "Intel" and "Pentium".

      They'll probably say "Huh?" when you mention "Celeron" and "Centrino", but they're aware of the old faithful brands. A few years ago, none of them had even heard of "AMD". Now that people have been using computers with "AMD" stickers on them for a few years, the brand is starting to stick in their minds.

    5. Re:Numbers, the new hot Christmas toy! by burnin1965 · · Score: 4, Insightful

      Retail sales are meaningless without integrating direct sales (Dell, etc).


      Wrong. The article was specifically about retail sales. If you throw in sales from a non-retail vendor who chooses the CPU manufacturer for you then you are truely playing with numbers by squewing the retail sales numbers.


      First, retailers will generally maximize margins buy promoting less expensive costing products.


      Wrong again. You have it backwards. Retailers will promote the product which will produces the largest margins and greatest amount of revenue. Sometimes this is the cheaper product but in many cases its the more expensive product. The selling price alone is not what drives margins and revenue for a retailer.


      Don't believe any sales figures any more. They're ignorant of the true market, which is retail, e-commerce, eBay, and buying in pieces from your local OEM "wholesaler."


      Again, the article was about retail sales. Throwing in all segments may be an interesting study, but it would not be a study of the retail market.

      Furthermore, considering that retail tends to give the consumer many choices while certain non-retail vendors give the consumer no choice, I think the retail market figures give an interesting perspective on what the consumer really wants.

      And lastly I would like to point out that in the article the author published a chart which shows the market data for the last 9 months. I truely appreciate this because I do agree with you that throwing out a single data point and making a headline out of it can be deceptive. However, by including the data for the last 9 months we can look at trends and follow up the article with our own research if we are curious.

      Note the downward trend from Jan to May and then the sudden jump from Jun to Jul. Rather than being too concerned about who has more market share than the other I'd be interested to know what took place in the market that would cause the sudden shift between June and July.

      I'm not curious enough to actually do any research myself :P but I do find it interesting that the author mentions this shift took place during the back to school period and then suggests part of the shift is due to interest in Media Center PCs. What do Media Center PCs have to do with back to school? Weird.

      burnin
    6. Re:Numbers, the new hot Christmas toy! by ReverendLoki · · Score: 3, Insightful

      If someone was looking for statistics on how AMD and Intel might fare in the marketplace if each where given (roughly) equal footing, then those statistics in fact MUST exclude sales by Dell. That was the main point of my post there.

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
  3. fuzzy (2-bit?) math by yagu · · Score: 4, Insightful

    So, exactly what victory is had here? AMD beat Intel in retail sales? Is that units (cpu's) shipped? Is it gross sales? And, the article says this doesn't include direct sales from vendors like Dell. Hwah? That sounds like a pretty large chunk of total sales of processors to be glibly claiming victory. What percentage of Dell's PCs ship with Intel vs. AMD and what effect does that have on the total numbers?

    As for winning in retail sales, to me this is more market spin (seemingly of which many slashdot articles are) and little real information. When I talk to people who are going to buy, or have bought a PC recently I virtually never hear them discussing the finer points of their decision to buy a particular brand or processor, mostly because 99% of PC consumers don't know and don't care what the processor is (though they really should when it comes to something like a Celeron).

    So to me this just means AMD has been successful in getting their products on the eye-level shelves in the stores. Customers are buying what looks sexy, and what costs the least.

    I've been happy with a couple of AMD machines I've purchased and I like that AMD continues to compete with Intel and hope AMD keeps Intel from becoming the Microsoft of the chip industry (some claim they already have), but I can't pull much real or meaningful information from this article.

    Nothing to see here, move along.

    1. Re:fuzzy (2-bit?) math by Surt · · Score: 2, Insightful

      Except that AMD is regularly begging Dell to name their price. Dell can definitely negotiate an excellent price with AMD, but their exclusivity agreement with Intel is apparently much too valuable. (my guess is >40% off retail, plus coadvertising, given their prices).

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    2. Re:fuzzy (2-bit?) math by Anarke_Incarnate · · Score: 2, Insightful

      And yet they use different brand PCI cards, different brand Hard drives and optical drives. They claim they don't want a second supplier....waaah waah. Smoke and mirrors.pP they don't want to upset the sweetheart deal they have with intel, which is just shy of legal in a monopoly market (monopolies are legal, anticompetetiveness in a monopolistic marketplace is not).

  4. good plan by wraithgar · · Score: 2, Insightful

    Selectively choose the input data set, and I can make the numbers say anything.

  5. Not really surprising by jawtheshark · · Score: 5, Insightful
    When people come to me in order to ask to buy a new PC, I just tell them to get what is on sale at the local computer store. You know those 400€ PC's you all laugh at because they can't play Halflife2. For their needs they are good enough. The only thing I recommend is to get 512Meg RAM, which the shop will usually happily install for a small fee. (I also recommend the Apple Mini, but most people want Windows... Cope!) Those PC's usually feature AMD CPU's. (Typically Semprons, or whatever they are called these days)

    The other end of the computer-buying public are gamers, who already know that they better go with a top-notch AMD64. Those people don't ask me anything anyway, but AMD is simply "the gamers choice".

    Intels customer base only are OEM manufacturers that target the business market. They still get credit for being more stable, which I don't understand because all my AMD machines - from a K6-II 333Mhz, over 2xAMD MP 2400+ to a couple of AMD64 (2400+ to 3400+) just run perfectly fine.

    The other consumers are those that don't ask their Geek friends and only know Intel from the commercials, so it "must be good". (They also think that "Centrino" is a processor, because of the sticker on their machine). That said: I never saw an AMD commercial in my whole life. Do they exist?

    AMD just kicks in the performance/€ factor, and CPU performance has become less important in the last few years. So if you want to save some money, just buy a slower CPU. It's just that simple.
    Oh, I just see that it doesn't include OEM machines (sorry, didn't read the story entirely). Most definately AMD will kick in the self-buidling crowd. AMD is popular with them... (performance/€ + easy overclocking possibilities. Who builds a PC himself with an Intel CPU anyway? ;-)

    --
    Ahhh...the great dumpster continuum. Many a free computer will be found there. -- sowth (748135)
  6. Of course by Jeff+Molby · · Score: 5, Insightful

    There's no doubt that this is only a portion of the battle between the two manufacturers, but the point is that 5 years ago, AMD was getting slaughtered by every measure. They weren't even a factor.

    Now, they've caught up to Intel by atleast a couple metrics. That's not insignificant, especially considering that retail sales have a strong correlation to "mindshare" amongst consumers, as pointed out by a sibling poster.

  7. Data set doesn't matter... by brockbr · · Score: 3, Insightful

    It doesn't matter what set of data was picked.

    Comparing Apple's to Apple's in the same data set, AMD won. Period.

    And no, I don't think it's indicitive of the actual market, but it is a noteworthy sign. (pun anyone?)

  8. Of course it favors AMD by evilned · · Score: 4, Insightful

    Intel's strong suit right now is its laptop processors, and who buys those at retail? AMD's strong suit are desktop processors, which are what people put into home built computers.

    --

    "My head hurts, My feet stink, and I dont love Jesus." -Jimmy Buffett

  9. We switched to AMD after 10 years. by Anonymous Coward · · Score: 1, Insightful

    After 10+ years of being a pure Intel shop sans some toaster applicances, we have been a pure Intel shop when it comes to personal computers.

    We just switched to AMD. We purchased 100 in the last month. I can get a feature rich AMD for $100 less than a feature poor power hungry Intel. $100x100 units a month adds up.

    The HP dx5150 sff are great little machines for workstation use.

  10. But it is a survey of retail sales... by WoTG · · Score: 2, Insightful

    It's not like they hide the fact that it's only retail sales. It tells you different things than a "whole computer market" survey. What a "complete" survey would include isn't exactly clear either, would big iron fit in? Anyway, retail is a good number for seeing what home users are doing in the marketplace. Yes, some home users go to Dell, but by in large, they buy retail. So, in the past when AMD's share was smaller and shrinking, we could guess that Intel's "Intel Inside" or "Centrino" or big Mhz or something else was working. Now, with AMD share growing, either the home consumer is thinking more highly of AMD, or maybe they just don't know either way and buy whatever is on the shelves.

    Anyway, my point is that this survey is as valid as any other as long as you think of it in the proper perspective.

  11. AMD Rocks - We need more AMDs and fair market!! by managedcode · · Score: 3, Insightful

    I have personally done benchmarking of some compilers on AMD64s. I can't reveal the results but the bottomline, AMD's performance was far better than Intels. It Rocks!
    I think it was a pain even at Microsoft to port their software to Intels Itanium. They have said that support for it will be limited in Longhorn. Regarding Media Center, I think Dave first ported to AMD64 and Acer was marketing the combination.
    Their are some serious issues with Intel and not many liked it including Linus Trovalds and he blasted INTEL in one of his e-mails for not giving credit to AMD.(Dig through Kernel archive)
    I like free market and competition. It was the WinTel lobby but these suckers somehow managed to escape from slashdoters, I am glad they are now losing.

  12. Missing the Point by pdxdada · · Score: 2, Insightful

    Personally I don't care what AMD or Intel's exact market shares are, I do however take this as a sign that the market is in a very good place. We have two companies in relatively comparable strong positions and several smaller companies filling out the niche markets (Via, Transmeta ...) and they all run the same code. It's also finally gotten to the point where the market dictates the course of the standard instead of just one company (Intel borrowing the x64 extentions from AMD). The companies are proffitable and the customer has choice. I can only wish the OS market looked like this.

    --
    Don't mess with the bunny, outsideworld.org