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iSuppli Corp: Intel and AMD Benefit from Strong Demand, Price-War Lull in Third Quarter

Monday, December 03, 2007; Posted: 08:29 AM
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El Segundo, Calif., Dec 03, 2007 (M2 PRESSWIRE via COMTEX) -- INTC | charts | news | PowerRating -- Intel Corp. and Advanced Micro Devices Inc. (AMD) in the third quarter both managed to gain share in the global microprocessor market due to robust sales of PCs and servers and the cessation of the companies' brutal price war, according to iSuppli Corp.'s final ranking.

In the third quarter, Intel accounted for 78.7 percent of global microprocessor revenue, up 0.3 of a percentage pointfrom 78.4 percent in the second quarter. AMD fared even better, with its share rising by more than the twice the level of Intel's to reach 13.9 percent, up 0.6 of a percentage point from 13.3 percent in the second quarter. The two microprocessor suppliers gained at the expense of their smaller rivals, whose collective share of global revenue declined to 7.4 percent in the third quarter, down from 8.2 percent in the second quarter.

The table attached presents iSuppli's final revenue ranking of global general-purpose microprocessor suppliers in the third quarter. Please note that this ranking accounts for sales of all types of general-purpose microprocessors, including RISC chips as well as the PC-oriented X86 devices sold by Intel and AMD.

Yet again in the third quarter, the two microprocessor giants accounted for an increasing share of total market revenues. Combined, Intel and AMD claimed almost 93 percent of global microprocessor revenue in the third quarter of 2007-an increase of 2 percentage points compared tothe third quarter of 2006.

A quarter to remember

Intel and AMD benefited from strong sales of computers in the third quarter. Global PC shipments, including desktops, notebooks and entry-level servers, amounted to 68.1 million units in the third quarter, up 13.8 percent from 59.9 million during the same period in 2006, and up 11.1 percent from 61.3 million in the secondquarter of 2007.

The companies in their third-quarter financial calls said they had seen a reduction in the aggressive pricing that has ruled throughout most of 2007. This signifies the beginning of the end for the X86 microprocessor price war, iSuppli believes.

"The combination of strong PC and server demand-combined with stable microprocessor prices led to a prosperous quarter for both Intel and AMD," said Matthew Wilkins, principal analyst at iSuppli.

Several factors contributed to a reduction in microprocessor market share in the third quarter.

"Pricing trends were influenced by many variables, including the consistent strength in computing markets, Intel's rapid migration to its new Core 2 architecture microprocessors, and the increasing penetration of multi-core products in the market," Wilkins said.

However, while the pricing battle may be coming to an end, Wilkins believes that the competition will continue to be extremely fierce.

"AMD's launch of Barcelona and Barcelona-derived products gives the company a stronger portfolio with which to compete, and with Intel shipping its products based on its new 45nm manufacturing process, neither company is resting on its laurels," Wilkins noted. ___________________________________________

All Information and Intellectual Property Contained Herein is the Sole Property of iSuppli Corporation

About iSuppli Corporation

iSuppliCorporation is the global leader in technology value chain research and advisory services. iSuppliprovides market intelligence services for the EMS, OEM and supplier communities in addition to servicing consumer electronics and media concerns. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to multimedia content and services. More information is available at www.isuppli.com

CONTACT: Jonathan Cassell, Editorial Director and Manager, Public Relations, iSuppliCorporation Tel: +1 408 654 1714 Tel: +1 408 921 3754 WWW: http//www.isuppli.com

M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

For full details on Intel Corp (INTC) click here. Intel Corp (INTC) has Short Term PowerRatings of 6. Details on Intel Corp (INTC) Short Term PowerRatings is available at This Link.
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