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AMD Loses Market Share as Mobile CPU Sales Outsell Desktop for the First Time

Posted 10/26/08 at 01:55:27 PM  by Justin Kerr

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Last week we looked at the financial results for AMD which reported a fairly positive financial outlook.  Even though the company was still losing money, they had managed to bring loses under control and investors were most likely hoping Q4 2008, or Q1 2009 would see the chip maker return to profit. These hopes are slowing being dashed by new market share numbers which according to Mercury Research saw AMD’s total share drop to 17.7 percent. This is a drop from 18.8 percent in the second quarter, and a huge plunge from 25.3 percent they enjoyed in the fourth quarter of 2006.

According to Mercury a large contributor to AMD’s drop is the shift from desktop processors to mobile. For the first time, shipments of mobile parts have exceeded their desktop counterparts in the CPU market. A market where Intel is extremely dominate. AMD drastically needs to improve innovation in the laptop arena if it is to slow Intel who is posting record breaking revenues. The processor market on a whole grew 13.3 percent and according to researchers, seems to be somewhat immune to the chaos in the financial markets. AMD managed to bring about a modest increase in the server and notebook markets but this is more the result of the market growth rather than share gains. AMD’s stock price has dropped to $3.03 in afterhours trading, down from its 52 week high of $13.80.

So, do you think AMD can bounce back?

amd vs intel

COMMENTS:5
TAGS: amd, intel, mobile, cpu, processor, hardware, stocks
COMMENTS
avatarI hope they are able to

Submitted by Subsect on Mon, 10/27/2008 - 3:29am

I hope they are able to mount a come back. Not only I'm a AMD fan, but without AMD, Intel would be allowed to go almost completely unchecked by competition and that only can only mean higher prices.  AMD's a strong company, though.  I have every faith they'll gain some ground in '09.

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avatarYep AMD has been through

Submitted by Keith E. Whisman on Sun, 10/26/2008 - 5:36pm

Yep AMD has been through alot of hard times over the years. AMD is not a fly by night operation. They have been building CPU's forever. I had an AMD 486 CPU back in the day because it was an almost exact copy of the Intel part.

only cheaper. 

 

They will do what they need to do to stay in buisness. They will survive. They have had hurdles like this befor where they make it big then they fall on their faces and then along came the Thunderbird CPU that skyrocketed AMD to stardom but then it was neck and neck with Intel until they released the Athlon64 and then they started the downward slump with intel Core cpu's. AMD will do it again.  

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avatarI predict they'll pull back

Submitted by yogurt80 on Sun, 10/26/2008 - 4:16pm

I predict they'll pull back through in the early spring 09.  I know they have big plans around that time, and I think we'll be pleasantly surprised.  Only time will tell, though.  I remember I used to think Intel was the only way to go- until I started building my own rigs.  I now have three computers with AMD chips, and I love them.

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avatarHey look at ATI

Submitted by Justin.Kerr on Sun, 10/26/2008 - 5:32pm

I hope they can bounce back as well. It's not unheard of. How many of us had written ATI off until the 4850 and 4870 launched. Everybody loves the underdog.

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avatarPoor AMD...

Submitted by HawkPidgeon on Sun, 10/26/2008 - 1:45pm

I really hope they can get back on their feet. AMD procs used to be so great! I still run an old 939 rig... Too bad though, it looks like AMD isn't getting up. Get ready for really high chip prices from Intel! Without competition they'll have a great time charging us high premiums for slower sillicon.

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