Chicago (IL) – 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.

Don't forget....

Oct 25, 2008 00:29     

Intel owns x86, AMD is licensing it from them, and part of that license, is a market share cap. They are capped in how much market share they are allowed to reach. AMD will always be second fiddle to Intel because of this. Read this for a little more info: http://arstechnica.com/news.ar...tions.html
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re: Don't forget....

Oct 25, 2008 01:56     

I agree with "agreements" in the first post. Intel pretty much holds an unfair market share on the x86. AMD has and (unless IBM steps in) always will be 2nd in the market. It's just the way the board was setup.
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Something To Think About

Oct 25, 2008 11:43     

http://www.youtube.com/watch?v=jvGtGitwMR0
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Well, too bad

Oct 25, 2008 17:24     

No innovation of late, poor management, too bad.
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Try being competitive

Oct 26, 2008 00:44     

AMD should try being competitive in the past they had the upper hand in price per performance, then performance per watt. Now they don't offer much other than lowest price low end cpu offering (you can still pick up an Athlon 64x2 4400 for $40).
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Dumb argument on Phenom X3 and X4

Oct 26, 2008 17:28     

I find this absolutely a dumb excuse "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.". Who wants a slow tri-core that will be slow in most everyday apps and games? Who wants a space heater quad core that doesn't overclock well, requires a more pricey motherboard that supports 140W processor and still slower than competition? Yet if you check NewEgg, the best selling quad core is still the Q6600 for 4 times, including last month. Most of the previous winners are dual cores, plus a few Intel quad cores. The only AMD winner there is the X2 5000 dual core, the rest were all Intel for the past 2 years. The problem is AMD has been slow in releasing compelling and interesting products, while the competition is forging ahead. Certainly a 45nm refresh would get some attention but AMD has been awfully quiet on that... I wonder why...

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Still Prefer AMD

Oct 27, 2008 07:43     

I will (almost always) prefer AMD over Intel. I like to support competition. It is competition that keeps products being improved and helps keeps prices down. If Intel was the only CPU maker, they could give you what they want you to have and make you pay what they want you to pay. It would be the hard ware equivelant to what Microsoft has been doing with its contracts and FUD.
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