Intel increases its Q1 microprocessor share

However, rival AMD gained share in 2007

By Jim Carbone -- Purchasing, 7/2/2008 8:44:00 AM

Intel increased its dominance in the microprocessor market in the first quarter of 2008 over the fourth quarter of 2007 due in part to stable processor pricing.

Intel gained 1.2 percentage points of share and now accounts for 79.7% of global microprocessor revenue. Advanced Micro Devices (AMD) revenue share decreased 1.1 points as its share fell to 13%, says researcher iSuppli. Both suppliers saw their sales revenue increase in the first quarter as they ceased their price war.

AMD was able to increase its share 2.2 points compared to the first quarter of 2007. Intel’s share in the first quarter of 2008 slipped .7 of a point compared to the first quarter of 2007.

“Intel was the short-term winner in the first quarter microprocessor market,” says Matthew Wilkins, principal analyst, compute platforms for iSuppli. “But over the previous 12-month period, the trend is reversed, with AMD growing its share.”

Reflecting the robust demand situation, both Intel and AMD noted that their prices did not decrease in the first quarter compared to the fourth. This price stability is another indication that price pressure has abated and the pricing war between the two microprocessor suppliers has ceased-- at least for now.

Both Intel and AMD in the first quarter continued to gain share at the expense of smaller players in the market. Combined, AMD and Intel accounted for 92.7% of total microprocessor revenues in the first quarter of 2008, up 1.4 percentage points from the first quarter of 2007.

Also see: Intel cuts processor prices