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Intel Loses Market Share to AMD

diverge_s wrote to mention an article examining Intel's market share loss to AMD in the fourth quarter of 2005. From the article: "Sales of Intel-based desktop PCs fell 22.3 percent during the fourth quarter, according to Current Analysis. As a result, sales of AMD-based desktops took the lead during the pivotal fourth-quarter holiday shopping season. AMD chips were found in 52.5 percent of desktop PCs sold in U.S. retail stores during that period."

13 of 283 comments (clear)

  1. Godd quality and low prices work :) by gasmonso · · Score: 4, Insightful

    AMD just proves that regardless of your advertising budget, it all comes down to good performance and good price. I don't think I have ever seen an AMD commercial, whereas Intel was all over the TV. Dell has finally taken notice and will start widespread use of AMD chips soon. Thanks for the giving Intel some competition AMD!

    http://religiousfreaks.com/
  2. Beige boxes? by Anonymous Coward · · Score: 5, Insightful

    I wonder whether AMD's success is an indication that PC's are well into their commodities phase and so el-cheapo models at Best Buy are (more than) sufficient for people's use? Intel's in the pricier boxes, so they stand/fall with those vendors.

    1. Re:Beige boxes? by HermanAB · · Score: 4, Insightful

      Well, especially, when the pricier models are worse than the cheaper ones... "Style, is the ability to distinguish quality, without looking at the price tag."

      --
      Oh well, what the hell...
  3. Marketing misstep? by PornMaster · · Score: 4, Insightful

    Anyone looked into the possible marketing misstep by Intel stopping marketing their processors by clock speed?

  4. meh... by DigDuality · · Score: 5, Insightful

    I'm not really a fanboy on either side of this Chevy/Ford arguement. They both support Trusted Computing which makes me wish there was another option out there.

  5. Does anyone even know what chip they have? by ZachPruckowski · · Score: 5, Insightful

    I don't mean this in a negative way, but what percentage of the computer buying public even knows about AMD? I mean, it seems to me that the average person couldn't tell you what chip is in his computer. I mean, the answer I usually get to that question is "Dell" or "HP". So basically, what I'm saying is that it may not be AMD chips that are doing well, but the particular brands they're in?

  6. How's the laptop market doing? by Fearan · · Score: 5, Insightful

    With the decreasing market share of desktops in the consumer computer market, I'm interested in knowing how AMD is doing in the laptop sector and total overall processors sold in comparison with Intel. Most people I know wouldn't consider anything other than Centrino for some reason that I don't understand (marketing?) Furthermore, how will Apple's new MacBook and other Intel offerings affect AMD's apparent marketshare takeover?

  7. Re:VIIV by canuck57 · · Score: 4, Insightful

    Their new push for quality engineering over marketing fluff will surely give them the lead again!

    I am still ticked at my PERL mobo w. P4 HT 2.4GHz that died just out of warrenty.

    If Intel want's back, cheaper, faster, cooler and more reliable come to mind. AMD has this over Intel at the moment and I have a 1.2GHz AMD that keeps on ticking.... so naturally one of those dual core AMD 64 X2 systems is on my list.

  8. Re:El cheapo? by Twid · · Score: 5, Insightful

    I'm calling you out on the "from day one" statement. The AMD K5 was not exactly the pinnacle of performance, features, or price competitiveness. AMD is doing well now, no argument there. I'd like to see an article that compares total chip chipments worldwide, though, rather than say limited statements like "52% of all retail desktop sales, in the USA, in the 4th quarter".

    In related news, my pants were the leading distribution method for iPod nanos, in the USA, in California, in my house, yesterday.

    --
    - "When you want something with all your heart, the entire universe conspires to give it to you" -Paulo Coelho
  9. Elephant in the room is Dell by DrSbaitso · · Score: 5, Insightful

    AMD chips were found in 52.5 percent of desktop PCs sold in U.S. retail stores during that period."

    Of course, Dell doesn't sell many of its computers in retail stores, it is the largest manufacturer in the US, and it doesn't use AMD chips (yet). So the quoted statistic is misleading at best. Still, more competition is always a good thing.

    --
    beware the jabberwock, my son! the jaws that bite, the claws that catch!
  10. Re:Consumer vs Corporate? by HangingChad · · Score: 4, Insightful
    Of course, it's always been my understanding that Intel is dominant in corporate computing...

    If Intel is holding on to dominance in any market segment it's more likely to be the result of their business relationship with a company like Dell, which has been propping Intel up for the last two years while AMD ate away the rest of their market.

    AMD makes a great product at a competitive price. What happened to Intel will happen to every other company that starts thinking they have a right to exist. Intel sometimes acts like they're a government agency.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  11. Re:El cheapo? by dougmc · · Score: 4, Insightful
    from day one they've been in the business of making better products, not cheaper products.
    Eh? I don't know about `day 1', but it wasn't that long ago that AMD was lagging behind Intel in terms of performance, power consumption (though that wasn't such a concern back then) and such. For example, the K5 was intended to compete against the Pentium chips, but the Pentium Pro came out almost immediately after the K5 did and it blew the K5 away. The K6's came closer to beating the Intel offerings, but even then, the Intel chips had a small performance lead, and the fact that 3Dnow never took off further hurt the K6 chips. Back then, people bought AMD because it was cheaper, not because it was better.

    Going back even further, the AMD 8086, 80286, 80386 and Am486 chips generally were just clones of the Intel offerings -- with similar performance, but coming out some time later at a lower price.

    But things have changed. AMD has finally caught up to and passed Intel in many respects, and I suspect that the reason that Intel is still selling so many chips is more due to interia than anything else.

  12. Re:Point of interest by corngrower · · Score: 4, Insightful
    Three things here. First, yes Intel sells more server chips than AMD, but AMD is making strong inroads in this area. In fact, AMD has been limited by their lack of fabrication capacity. The margins in this arena are fairly high, and with the new Dresden Fab coning on line this year, Intel is going to take a big hit. If I'm AMD, and have limited production capacity, I'mg going to be producing chips that give me the biggest margin, and that's going to be the high end chips. Because of their superior performance, AMDs chips will command a price premium to Intels chips.

    Secondly, corporate desktops. The best that AMD can do is to try to underprice Intel, which will be difficult since Intel does have better process technology. Expect prices of the midline chips to fall as Intel lowers prices to maintain market share. With margins as thin as they are in this arena, AMD needs to work to maintain its performance edge on the high end chips where it can command better margins.

    In laptop processors, the Pentium-M's excellent perfomance/power ratio means that AMD is not about to overtake Intel's number one position. AMD's Sempron may have better performance, but it also 25% (AFAIK) more power hungry. This is an important market segment, and while AMD puts up some competition, Intel is still the strongest. The price margins in the market aren't as large as those of the server market, but they're still better than the margins desktop market.

    It's Intel's more advanced process technology that gives them the edge in producing the low power laptop chips, not the manufacturing volume. I wouldn't say that AMD is years behind Intel, just 10 months behind, which is far enough behind to be at a definite disadvantage. AMD should be concerned with improving its process technology while also trying to improve production capacity.