We recently reported of Advanced Micro Devices’s (AMD) uphill battle to challenge rival Intel’s dominance in the micro-processor market. According to the technology market research firm IDC, AMD could be catching up to Intel sooner than everyone thought. The IDC released a report today that indicated that AMD may be gaining ground in the fight to surpass Intel.
In the first quarter of 2009, AMD earned 22.3% of market share, gaining 4.6% from the last quarter whereas Intel earned 77.3% of market share, losing 4.7% from the last quarter. IDC reported overall weakness in worldwide PC processor unit shipments, with shipments declining 10.9% from 4Q08 to 1Q09. Market revenue declined 11% from 4Q09 to 1Q09. Revenue declined 25.1% from 1Q08 to 1Q09.
“The PC processor market continued to reflect significant decline in end demand for most of 1Q09,” said Shane Rau, director of Semiconductors: Personal Computing research at IDC. “However, some inventory replenishment by OEMs at the end of the quarter helped to slow the decline and bring the quarter in at a level only slightly worse than typical seasonal decline.”
AMD has been struggling with sales in the enterprise space. In April, AMD reported significant losses in the first quarter of 2009, with as revenue falling 21% to $1.8 billion. The company lost $416 million, compared with $351 million in same quarter last year.
According to Rau, AMD saw an increase in market share thanks to a pricing advantage over Intel and an increase in demand for desktops. AMD previously had five straight quarters of declining market share so things are looking up for the chip processor. Of course, Intel is still ahead in the race but perhaps AMD’s recent microprocessor offerings could also help close the gap slowly but surely.