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Intel gains microprocessor share on Sandy Bridge success

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Intel in the second quarter accounted for 81.8% of global microprocessor revenue, up 1.1 percentage points from 80.7% in the second quarter of 2010. Chief Intel rival Advanced Micro Devices Inc. (AMD) suffered a corresponding 1.1 percentage point decrease in share during the same period.”Intel in the second quarter benefited from the combination of a recovery in PC demand and strong shipment growth for its new Sandy Bridge line of microprocessors,” said Matthew Wilkins, principal analyst for compute platforms research at IHS. “Strong corporate PC sales were particularly beneficial to Intel, as the enterprise computing segment has been outperforming the consumer market.”PC recovery fuels rebound in microprocessor salesAfter contracting on a sequential and annual basis during the first three months of the year, the global PC market returned to growth in the second quarter, with total shipments of 85.6 million units, up 3.7% from 82.6 million during the same period in 2010.This contributed to a 10% year-over-year leap in global microprocessor revenue in the second quarter. Global microprocessor revenue in the second quarter of 2011 amounted to USD 10.8 billion, up from USD 9.8 billion the same time a year ago.PC sales were propelled by strong demand from corporate information technology (IT) departments, which now are engaging in efforts to refresh their hardware. In contrast, consumer PC demand was weak because of rising competition from tablets and due to increasing economic concerns. This benefited Intel, which derives a greater proportion of its microprocessor revenues from the corporate market.Sandy Bridge provides bridge to growthMeanwhile, Intel also aggressively increased production of its Sandy Bridge line of microprocessors, helping to expand its market share. The company described its production increases for the microprocessor as the fastest ramp-up of any product in the company’s history.The Sandy Bridge line integrates graphics as part of the processor package, and is targeted at corporate and consumer markets across desktop and notebook PC platforms.AMD performs better sequentiallyWhile Intel was the star of the microprocessor market on a year-over-year basis, AMD’s second-quarter performance appears better when using a sequential comparison.AMD’s share of the microprocessor revenue in the second quarter rose to 10.4%, up 0.3% from 10.1% in the first quarter. This compares to Intel’s 0.7 percentage point decline from 82.6% in the first quarter.AMD’s strong increase in shipments of its Fusion microprocessors helped the company to halt the sequential decrease in shipments that it has suffered for the last three quarters.”AMDs results were powered up by Fusion microprocessors, which delivers improved computational performance. It also provides PCs with DirectX 11 graphics capability without the need for a discrete graphics card,” Wilkins said.

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