Wednesday, March 7th 2007

AMD Aiming for 30% Market Share

AMD has reiterated that its main aim at the moment is to achieve a 30% market share in order to break Intel's monopoly. Speaking at the Morgan Stanley Technology Conference in San Francisco today, Hector Ruiz (chief executive of AMD) said "The environment is very competitive, very competitive. We need to break the monopoly, and for that we've got to get above 30% [market share]." Ruiz also announced that AMD was looking likely to fall below its first-quarter sales guidance of between $1.6 billion and $1.7 billion. By the end of 2006, Intel accounted for 74.4% of the overall processor market, with AMD in control of 25.3%, whilst Intel made up 77.7% of server chip sales. AMD has a strong challenge on its hands in the form of Intel's Core 2 Duo processor, which is becoming more popular among consumers allowing Intel to gradually claw back some of its market share.
Source: Xbit Labs
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29 Comments on AMD Aiming for 30% Market Share

#26
Easy Rhino
Linux Advocate
Wile EIt really doesn't have everything to do with performance, it does have everything to do with marketing. Remember, the average user isn't likely to notice a difference between, and I'm just pulling an example out of my arse here, an AMD 3800+ X2 and say an Intel E6400 in computers with otherwise identical specs. For surfing and office apps, it just isn't that big of a deal. Gamers, enthusiasts, and a/v content producers are the only ones that will notice a huge difference. (AKA: The people frequenting this forum, and others like it) And last I checked, AMD still had the lead in energy efficiency and price, which can be a huge selling point for the average user. That's not even taking into consideration the OEM and Server markets. It will all boil down to nothing more than marketing strategy on AMD's part.
both intel and amd do not care about the end user. we are an afterthought. intel and amd sell the vast amount of their chips to companies like dell and HP. these companies then sell their products with either an amd or an intel chip. right now more of these companies use intel because of price/performance ratio. dell and HP dont care about how cpus are marketed before they buy them, they care about how they are marketed afterward. so you might see intel with an advertisement that says 'buy a pc with an intel processor' it basically says go out and buy dell.
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#27
Wile E
Power User
Marketing also goes beyond the adds you read in magazines and see on tv. It reaches into the corporate world as well. I'm still saying that if they market themselves properly, 30% is achievable, regardless of processor performance.
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#28
Easy Rhino
Linux Advocate
Wile EMarketing also goes beyond the adds you read in magazines and see on tv. It reaches into the corporate world as well. I'm still saying that if they market themselves properly, 30% is achievable, regardless of processor performance.
yea i agree there. im sure there are some corporate dumbasses who watch way too much tv and see a nice shiny new advertisement from intel and say to themselves, " hey why doesnt our company have intel?! " and of course there is a lot in a name. the general public hears 'intel' and they think a high quality chip because that is what they see more of. but i just cant see that if amd advertised more it would have a big enough impact to change things. they really need a kick ass chip that is low wattage and is cheap as dirt. until then intel will get the bigger contracts.
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#29
niko084
I think what a lot of people are missing here... AMD is into a whole lot more than PC Processors, and is the king of a lot of other domains in chip architecture. They are absolutely huge, and processors is something small on the side they have been doing for years, and happen to do it very well. A 30% marketshare would be big for them, and they will obtain it, but pc processors is not where their money comes from *yet*
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