by Anton Shilov
06/13/2007 | 02:24 PM
Advanced Micro Devices’ positions in the market of workstations have never been really strong primarily due to the fact that not a lot of system builders used AMD’s chips in business-oriented personal computers. While along with popularization of AMD Opteron processors the company’s market share began to increase slowly, the introduction of new dual-core and quad-core Intel Xeon processors have managed to fight nearly everything back.
Back in Q2 2006 the market share of uni-processor (UP) and dual-processor (DP) AMD Opteron workstations was 3.6% and 13.3%, respectively, which was not even close to Intel’s 96.4% and 86.7%, but still was historically highest. But then Intel introduced its Core 2 micro-architecture along with dual-core as well as quad-core processors and started to fight back the lost share, which lead to logical results: Intel Xeon chips commanded 98% of UP and 92% of DP workstations in Q1 2007, whereas AMD Opteron central processing units could be found only in 2% of single-processor and 8% of dual-processor workstation systems, a report from Jon Peddie Research estimates.
“We’d expected AMD’s share to moderate or level off by the time Intel improved its dual-socket Xeon platform in mid-2006, but we hadn’t anticipated the decline we’ve seen. The extent of Intel’s rebound will put that much more pressure on AMD to deliver quad-core
Considering that Intel has been adding more competitive quad-core chips into the lineup recently, it can be expected that Q2 2007 will also bring AMD nothing but losses in the workstation segment. Moreover, as quad-core AMD Opteron chip for UP workstations code-named
Overall, the workstation market continues to pleasantly surprise. As expected, quarterly growth rates have subsided a bit from the 25 – 35% increases (year-to-year) JPR had seen in late 2005 and early 2006, but they remain strong. All told, the industry shipped 674 thousand workstations in the Q1 2007, up 15.2% over the same quarter of 2006. Average selling prices (ASPs) held flat, allowing revenue to also increase a healthy 15% to around $1.7 billion, according to the research firm.