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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.

29 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.
    3. Re:No Direct Sales? by greg_barton · · Score: 3, Funny

      by CynicalGuy

      Seems like an incredibly flawed survey.


      Hmmmm... I'm sensing a pattern here...

  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 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
    2. 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. "

    3. Re:Numbers, the new hot Christmas toy! by Waffle+Iron · · Score: 5, Interesting
      Retail sales are meaningless without integrating direct sales (Dell, etc).

      Who's to say what's meaningful? For example, auto manufacturers have often met production milestones by stuffing huge numbers of a particular model into their captive auto rental subsidiaries. Are the market share numbers that include those artificially created purchases more meaningful than the sales numbers for dealer sales to individuals? It depends on what aspect picture you're interested in.

    4. 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
    5. 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.

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      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: 3, Informative

      In case you (or someone reading this) really doesn't know:

      Dell is the worlds largest PC seller, with $49 billion in sales last year.

      They ship 0% of their systems with AMD processors, due to some unholy deal they made with intel.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  4. In other news... by Tezkah · · Score: 4, Funny

    Tezkah reports: Chef Tezkah holds the record this week for most meals sold! He captured 52% of the meal market for the first six months of 2005. Congratulations Chef Tezkah! Its important to note that this doesn't include any meals sold in restaurants, but good showing for Tezkah just the same.

  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)
    1. Re:Not really surprising by Lumpy · · Score: 3, Interesting

      Who builds a PC himself with an Intel CPU anyway? ;-)

      thos of us that are forced to becuase all current video editing apps (prosumer not the cheeze crap that coesm with cameras and firewire cards) require Intel P4.

      I can not wait until Sony Vegas comes out as 64 bit for AMD next year. I'll drop this Adobe crap like a hot potato for that and jump on the AMD 64 bandwagon fast. (still wish I could get MAC editing platform as cheap as a wintel platform)

      Adobe Premiere Pro does not work well under AMD. they have Intel specific code in the rendering that causes performance issues. Same goes for Canopus and Sony vegas as of the current versions.

      Some of us use their computers for work.

      --
      Do not look at laser with remaining good eye.
  6. What this says... by BJZQ8 · · Score: 4, Interesting

    What this says is that AMD is making serious inroads on Intel. Just a few years ago, AMD beating Intel at anything, by any metric, would have been laughable.

  7. Retail is the word here by Rectum2003 · · Score: 4, Interesting

    I think it is not so surprising that AMD sells more Retail CPUs than Intel, considering their cheap prices, their great performance and the cheapness of their motherboards/chipsets. They are the perfect home system. However, when you consider than the vast majority of PCs sold in America and troughout the world are trought direct sales (say Dell) as the Ed implied, and through wholesale (Businesses), AMD is marginalized.

    Why? Because they can't promise the same level of production as Intel does. They do not produce their own motherboards, and while some third-party manufacturers produce some great silicon, most are abobinable pieces of flaky crap. For most mom'n'pop users at home, stability and performance don't matter too much, and those $40-60 MoBos are a bargain.

    Anyway, props to AMD for their successes!

    1. Re:Retail is the word here by manno · · Score: 5, Informative

      "They do not produce their own motherboards, and while some third-party manufacturers produce some great silicon, most are abobinable pieces of flaky crap."

      "most" huh?

      I have made dozens of A-64/A-XP PC's in my day, and I've used motherboards made by Tyan, MSI, Asus, AsRock, Abit, Biostar, Foxconn, Gigabyte, and ECS. Using Chipsets by AMD, Uli, Nvidia, and Via. And out of the 100+ boards I've been shipped I've only had problems with 2 that weren't my responsibility. With one and only one exception and that's if I installed Nvidia's Software IDE Driver, that being said I've experienced similar issues with Intel's Software IDE drive, called "Intel Application Accelerator" or something like that. So I call that a wash, and don't install either.

      How do you define most... for argument's sake lets say that I'm lucky, and assume normal return rates with electronic goods, when I was in the distribution biz, we expected 20% of all of our electronics to come back whether it was defective or otherwise. So let's put it at 20% how on Earth does 20% constitute "most"? You literally don't have a clue as to what you are talking about.

      Let's continue shall we?

      "when you consider than the vast majority of PCs sold in America and troughout the world are trought direct sales (say Dell) as the Ed implied, and through wholesale (Businesses), AMD is marginalized.

      Why? Because they can't promise the same level of production as Intel does. They do not produce their own motherboards, "

      Do you think Dell buys Intel manufactured motherboards? Wrong! One of Dell's largest suppliers for cases/Mobos ect. is Foxconn/Hon Hi, In fact one of the major suppliers for every PC manufacture sprawling from Dell, to Intel, to even that sacred cow Apple is Foxconn/Hon Hai. Please post "facts" on just the topics you understand.

      mod -1 FUD

      -manno

  8. 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.

  9. I don't see how this matters... by indytx · · Score: 3, Interesting

    Laptops are now outselling desktops, and AMD has lagged behing Intel in its portable chips designs. Now, a breakdown based on the numbers of CPUs shipped would be interesting.

    --
    Make love, not reality television.
  10. How does that saying go...? by Grfxho · · Score: 3, Interesting
    "Figures never lie, but liars always use figures."

    While I think a full out celebration would be premature, this same set of numbers showing an increase from a previous data set is still a positive sign...isn't it?

    --
    Greatness. It comes in many forms, sometimes it comes in the form of sacrifice - that's the loneliest form.
  11. Perhaps not now... by WidescreenFreak · · Score: 4, Informative

    Why? Because they can't promise the same level of production as Intel does.

    AMD just opened a new manufacturing facility in Germany that, if I recall correctly, will be able to product 100 million more chips per year. Whether that's CPUs or IC chips I don't know, but it's clear that AMD is growing. That's still not going to overtake Intel any time soon, but it's encouraging.

    And so what if AMD doesn't produce their own motherboards? Okay, Intel has the facilities to do both. So what? Why does that matter? Dell doesn't manufacture their own hard drives or memory chips or ... just about anything that goes into a Dell PC. Why do you hold AMD to standards that are not required for other electronics manufacturers? As long as AMD has an open relationship with other motherboard manufacturers where technical specs are available to make appropriate motherboards, then so what if AMD doesn't make their own? If certain mobo manufacturers don't make quality products, then don't buy from them. Buy from competitors. Don't blame AMD for bad products from other companies.

    --
    The Overrated mod is for reversing inappropriate, positive mods, not for voicing disagreement with a post.
  12. Idea for TV commercial by Spy+der+Mann · · Score: 3, Interesting

    Commercial Idea (c) myself 2005, i hereby grant exclusive, permanent, non-revokable license for use to AMD.

    ---
    The typical hare and turtle cartoon race. But they're in racing cars. The Hare starts first in its "Famous inside" car. The turtle starts next, and its car reads: "AMD powered."

    The race starts, and we see the hare pushing the gas to the bottom. But when it looks back, there's no turtle! Where is it? Oh, the turtle just crossed the finish line! The hare's jaw drops as the turtle is already being cheered by the fans and given the gold medal.

    The hare opens the race car, and sees (instead of the engine), an AMD CPU.

    The tagline: "AMD. Faster." (When the phrase is said, the background switches to a bar chart comparing "AMD" and "Other", showing AMD is faster)
    ---

    Seriously, if AMD wants to win the market, they should start making TV and radio commercials. Remember what happened to the Amiga. It was a superior product, but lack of marketing lead to bankruptcy.

    Only when customers start asking for "AMD processors", vendors will start using them.

  13. 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?)

  14. Buggy Pentiums by ewg · · Score: 3, Funny

    I'm pretty sure these statistics were prepared on a PC with one of those faulty Pentiums.

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    org.slashdot.post.SignatureNotFoundException: ewg
  15. 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

  16. Dell's disservice to its customers by unsigned+integer · · Score: 3, Funny
    I can only imagine the hookers and blow that Intel is sending to Dell, to keep it exclusively using Intel processors. Benchmarks, tests, performance reviews, all laud praise onto AMD and their processors, yet Dell continues to steadfastly use sub-par chips.

    Ah, to be the Dell CEO and snorting lines off a hooker's ass ...

  17. Somewhat meaningful by DaEMoN128 · · Score: 3, Informative

    Let us look at these numbers. They exclude most of the market (I know very few people that buy retail computers). I am not suprized that AMD beat intel in the retail market. Most people that are buying preconfigured boxes from a retail store are usually looking for a cheap computer. AMD will win in this case.
    I think this is a sign that AMD is getting a shelf presence. That is it. 5 years ago, you couldn't find a computer with AMD inside it without doing some serious looking. Now you can find 4 out of 9 on walmarts computer page. I personally build only with AMD for now, but I have no issue with Intel processors (other than the loss of my left arm to pay for it). It is a good sign that AMD is becoming mainstream to the public, not just the enthusiast.

    It should only be a couple of years more before Dell ships an AMD system. HP, shuttle, alienware, velocity micro, and monarch already do. I dont know about Gateway 2000.

    all in all, Good for AMD!

    FYI, 1 Athlon XP, 1 Duron, 1 G4, 2 Xenon, and 1 P4M at home.

    --
    Stop signs are only Suggestions
  18. 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.