Advanced Micro Devices managed to continue to boost its market share in the U.S. retail market of computers, both desktops and laptops, in October. The result was that in terms of units the company succeeded in surpassing much larger rival Intel Corp., supplied the majority of desktop processors and managed to raise the number of its mobile computers sold. Nevertheless, in terms of sales Intel Corp. still dominated.

Based on data derived from the Current Analysis’ Retail Panel, a panel comprised of the nation’s leading consumer electronics retailers, in October 2005, 49.8% of the personal computers (desktops and notebooks combined) sold in the U.S. retail market utilized AMD processors, thus allowing AMD to narrowly surpass Intel, which accounted for 48.5% of the market.

AMD’s share of unit sales in the U.S. retail desktop space increased from 52.0% in September to 67.7% in October. AMD’s share of unit sales in the U.S. retail notebook space increased from 26.2% in September to 31.5% in October, Current Analysis noted. Despite the company’s superior standing in the arena, AMD’s October revenue share of retail PC sales (40.1%) trails that of Intel (57.6%) because the average selling price of Intel PCs is significantly larger than AMD-based personal computers.

AMD led Intel in the desktop category by 6% margin in the month of September as well, thus, the company sustained growth in the category in October and, subsequently, extended its lead across the entire U.S. retail PC category during the month.

“AMD did the unthinkable by surpassing Intel in October. Continuing to hold this lead in the holiday season would be a colossal win for the company,” said Matt Sargent, director of research at Current Analysis.

October serves as the transition between the back-to-school and winter holiday shopping seasons. The period between Black Friday and Christmas will ultimately define the success of the fourth quarter. However, these October sales results, as well as the well-documented rumor that Wal-Mart will offer a $398 AMD notebook and a $398 AMD desktop on Black Friday, indicate that AMD is in a stronger position to compete with Intel than it has been in past holiday seasons, according to Current Analysis.