AMD Reaches Its All-Time-Highest Processor Market Share in History

AMD Continues to Gain Market Share – Mercury Research

by Anton Shilov
07/28/2006 | 11:49 AM

Advanced Micro Devices, the world’s second biggest supplier of x86 microprocessors, has achieved its historically highest market share in the central processing unit (CPU) shipments ever, according to data presumably coming from Mercury Research.


In the second quarter of 2006 Advanced Micro Devices shipped 22% of microprocessors for desktops, notebooks and servers, while Intel Corp. commanded 73% of CPU shipments, according to data by Mercury Research published by International Business Times. 22% is the highest market share AMD has ever achieved, previous all-time-high stood at 21.8% in Q2 2001. If the published figures are correct, then companies like Via Technologies and Transmeta Corp. supplied no less than 6% of the world’s x86 microprocessors during the Q2 2006, a significant number for both.

AMD’s revenue share also grew to 18% at the expense of Intel, whose revenue share stood at 81%, meaning that the remaining x86 chip suppliers shipped 6% of all world’s x86 architecture CPUs for 1% of revenue.

The revenue share growth was likely to be hugely affected by AMD Opteron 200-series 45% quarter-over-quarter shipments growth, giving AMD 33% of the total server market revenue, meanwhile, Intel’s market share declined by 5%.

AMD was not able to make any progress in the notebook universe, however. Intel’s share increased from 86.3% in Q1 to 86.7% in Q2. AMD unit share declined to 13.3% from 13.6% sequentially.

But while AMD succeeded in increasing its market shares in Q2 2006, the Q3 results may not be that promising, as Intel has just announced its new breed of chips, which offer increased performance, yet moderate power consumption. However, the effect of the recently introduced Intel Xeon 5100-series chips should be seen in two to three quarters from now, according to experts polled by the web-site.

"With the introduction of new generation of [Intel Core 2] microprocessors, we expect Intel to regain market share in the second half of this year,” Joe Osha, an analyst with Merrill Lynch is reported to have said.