El Segundo (CA) – Positive news coming in the wake of yesterday’s Barcelona launch indicates AMD managed to pick up 2.5% market share points based on revenue in the second quarter, according to iSuppli. The market research firm adjusted its numbers up by 2% from July estimates. Most of this large gain came at Intel’s expense, who dropped 2.1% in the same period. Average sales prices (ASP) were still down and that fact continues to harm both companies financially.
iSuppli’s final tally for the end of the second quarter now estimates AMD stood at 13.4% of the x86 market, compared to Intel’s 78.8%. The 13.4% number brings AMD within 3.4% of the 16.8% market share position it held in the third quarter last year. The rebound appears to be strong, up from a first quarter low of 10.9% and three consecutive quarterly losses in revenue market share to Intel. If this trend continues, AMD could be within striking distance of the 16.8% figure again when the third quarter numbers are known late this year.
Data provided by iSuppli Corp. September 2007.
AMD’s rise in second quarter revenue came through more volume shipments of notebook, desktop and server chips, despite lower ASPs. According to iSuppli, the ASP for both companies will continue to be “active” throughout 2007 as AMD and Intel “react to each others’ pricing”. The remainder of 2007 is forecast to be an “aggressive pricing environment,” we are told.
Impacted most strongly by price in the second quarter were the low-end segments of both desktop and notebook PCs. These markets are expected to grow by 26% in units sold by the end of this year. The report indicates that right now the microprocessor markets are being “dominated by severe pricing pressure” which began after Intel released Core 2 last year.
Matthew Wilkins, principal analyst at iSuppli’s compute platforms research division, said “AMD’s performance in the second quarter of 2007 was both impressive and much needed, as the company managed to halt the three-quarter market share advance of archrival Intel.” He went on to say that over the past twelve months, both companies have managed to consume 2.3% of other microprocessor suppliers, in terms of revenue.