AMD has not yet found an effective way to slow its market share decline in the x86 CPU market. According to new market estimates, AMD currently has a 17.7% share, while Intel is at 81.2%.
The new data provided by Mercury Research to PC Magazine sounds somewhat surprising given AMD??™s strategy to hold on to market share at virtually any cost and dirt cheap desktop processor prices. For example a triple core X3 8450 processor can be purchased for less than $100 these days, according to Pricegrabber.com and a quad-core X4 9550 CPU for $144.
We recently reported about what appears to be evolving into yet another price war between Intel and AMD especially in the sub-$200 segment, in which AMD seems to have some compelling offers. However, according to the PC Magazine article, AMD??™s problem isn??™t really the desktop market, it is the notebook in which AMD just does not have Intel??™s depth these days and can??™t quite keep up in a segment that is growing, while the desktop market is declining.
According to Mercury Research, the processor grew by 13.3% in Q3, driven by mobile CPU sales that gained about 27%.
"AMD's share decline was essentially due to their comparatively weaker mobile mix - the market moved strongly to mobile, and Intel having a larger share and mix benefited more, diluting AMD's position," Mercury Research analyst Dean McCarron told PC Magazine. The translation: AMD needs a much stronger mobile product line to stop the bleeding.
Market share numbers have to be taken with a grain a salt and have to be put into perspective, as they can vary greatly from one market research firm to another. However, Mercury Research says that AMD still held a share of 25.3% in Q4 of 2006, the first quarter in which it felt the full brunt of Intel??™s Core 2 Duo processor.
If these numbers in fact are correct, then it is clear that AMD will need to roll out a mobile Fusion processor rather sooner than later to improve its competitiveness.
Source: TG Daily