Intel retakes market share from AMD in Q1

Intel Corp. regained 4.5 percentage points of market share against rival Advanced Micro Devices Inc. during the first quarter, market researcher iSuppli Corp. said Thursday.

Intel took 80.2% of global microprocessor revenue during the three-month period that ended March 31, up from 75.7% in the fourth quarter of last year, iSuppli said. AMD's share of global microprocessor revenue dropped to 11.1%, down 4.6% from the 15.7% share of the market it controlled in the fourth quarter of last year.

The market researcher said that although most people knew Intel that had gained market share over AMD in the first quarter, the gap was much greater than expected. Sales of Core 2 Duo microprocessors boosted Intel's gains during the quarter, iSuppli said.

AMD reported a far larger loss than expected for the first quarter, at $611 million, blaming "significantly" lower microprocessor unit shipments and lower selling prices for its performance. AMD and Intel have been engaged in an ongoing price war for more than a year.

Wall Street analysts had expected AMD to post a first-quarter loss of $0.48 per share, but instead the company surprised them with a loss more than double that amount, at $1.11 per share.

AMD's decline in the first quarter represents a major reversal of fortune compared with 2006, when it had the advantage over Intel with its own dual-core processors, iSuppli said.

Copyright © 2007 IDG Communications, Inc.

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