Intel Says it will Fight on Quality, Not Price

[GHoosdum]

Intel's European sales head, Jurgen Thiel, has announced that the company plans to fight off AMD's gains in market share with a focus on quality, and not with price cuts.

Intel, the world's biggest chipmaker, acknowledged this week it was under "tremendous competitive pressure" from AMD after it warned last Friday this quarter's sales would be lower than expected, partly because it lost more market share to AMD.

It said, however, it was reversing a trend of making chips that guzzle more power and that it expects to regain its footing when it launches new processors in the third quarter.

AMD, which at one time merely mimicked advances by its larger rival, has turned the tables in recent years with innovations such as putting two processing cores on a single chip, allowing it to handle multiple tasks more efficiently.
Source: Reuters (http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&storyid=2006-03-10T174314Z_01_L10411805_RTRUKOC_0_US-INTEL-AMD.xml)

[RWB]

Good luck with that!

[GnomeWizardd]

what exactly is hte market share between hte two Companies? I am kinda wondering how much AMD has gained

[rapture]

Was this article written in 1999 or something?

It said, however, it was reversing a trend of making chips that guzzle more power

hehe

[Winga]

what exactly is hte market share between hte two Companies? I am kinda wondering how much AMD has gained


The attached article goes on to say that Intel still sells almost four times as many chips as AMD for desktop PCs, and nine times as many for laptops.

The USA makes up just less than 10% of global PC sales. In the first 7 weeks of 2006 AMD took around 82% of the US desktop market share as opposed to Intel's 18%. Intel's still selling more notebooks than AMD at around 63%. These figures are obviously very skewed as they represent less than a two month period, but it gives an idea as to how effective AMD has been at penetrating the market.

However if you looked at Intel's market share on a global scale, they still hold about 77% of the market.

Source: http://news.com.com/Strike+three+for+Intel/2100-1014_3-6045843.html?tag=nefd.lede
http://news.com.com/AMD+once+again+hits+the+roaring+20s/2100-1006_3-6030509.html?tag=nefd.top

[muddocktor]

Another thing to consider too, when reading those numbers. They are talking about brick and mortar store sales and aren't including online and direct marketed sales, such as Dell. If you go add Dell's sales into the picture, I would imagine that it would get quite a bit closer to balance. Still all and all, AMD has put the hurts to Intel for the last year or so at least. They've had the better product for a while now and more and more people and companies are catching on.