Intel and AMD face microprocessor stalemate

EL SEGUNDO, USA: The world’s two largest microprocessor manufacturers—Intel Corp. and Advanced Micro Devices Inc.—held their ground in the third quarter, with neither company able to wrest significant market share away from the other, according to market research firm iSuppli, now part of IHS.

Intel Corp. in the third quarter of 2010 accounted for 80.1 percent of global revenue for microprocessors . Intel’s standing during the quarter was up a slight 0.1 of a percentage point from the year-ago figure of 80.0 percent share, but was down 0.3 of a percentage point sequentially from 80.4 percent in the second quarter.

Advanced Micro Devices (AMD) lost market share on both sequential and year-over comparisons, but the decrease amounted to less than 1 percentage point. The company accounted for 11.3 percent of worldwide microprocessor revenue during the period, down from 11.5 percent in the second quarter and down from 12.1 percent in the third quarter a year ago.

“In reality, the share changes in the third quarter from the two incumbents were extremely small and not at all significant,” said Matthew Wilkins, principal analyst for compute platforms at iSuppli.

“What is significant, however, is that neither company has been able to take any sizable share away from the other. One reason is that each company offers well-matched competitive product portfolios. Another reason is that end markets are not undergoing significant changes in market share of product lineup that would impact microprocessor market share.”

The figure shows iSuppli’s estimates for global quarterly microprocessor market share. The numbers represent revenue for the entire global processor market—including x86, RISC and other types of general-purpose microprocessors. The data is not limited to the x86 PC microprocessor market.Source: iSuppli, USA.

Despite the relatively static dynamics in the third quarter among the two microprocessor giants, Wilkins said the coming months may presage some exciting developments in the market.

“There remains a very competitive situation between the two dominant suppliers,” he said. “In particular, we look forward to seeing the effect that AMD’s forthcoming Fusion products might have on the share situation for these two mega-players.”

Worldwide microprocessor revenues grew 23 percent in the third quarter of 2010 compared to the same time a year ago, and 3 percent compared to the second quarter of 2010, according to Wilkins—a rate of expansion that should be considered very healthy growth.

Source: iSuppli, USA.