AMD gains market share on Intel

Industrywide, revenue drops 25% amid weak global chip sales.
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Advanced Micro Devices Inc. gained ground against rival Intel Corp. in the first quarter, increasing its market share in a weak global market for microprocessor shipments, according to technology market research firm IDC.

AMD finished the quarter with a 22.3 percent share of processor shipments, a gain of 1.6 points from a year earlier and 4.6 percentage points from the fourth quarter of 2008.

Intel's share was 77.3 percent, down 1.7 points from the quarter a year earlier and down 4.7 points from the fourth quarter.

It was AMD's largest market share since the fourth quarter of 2007.

Overall, processor shipments were down 13 percent from the first quarter of 2008, IDC reported Tuesday. Industrywide, revenue fell 25.1 percent over the same period.

Intel could be in for more headaches, based on news reports that European regulators are about to propose a $1 billion fine for alleged antitrust violations.

Bloomberg News reported that the European Union is expected to issue the fine today, based on allegations that Intel improperly used customer rebates to thwart AMD.

In an attempt to maintain its dominance in the chip industry, Intel has for years given rebates to customers if they buy all or most of their chips from the company. AMD filed a complaint with the European Union eight years ago about the practice.

Both companies are fighting the weakest worldwide chip market since 2001, as computer and server sales stall amid a global downturn.

But Paul Otellini, Intel's CEO, said Tuesday that orders so far in the second quarter are "a little better than expected."

In the first quarter, IDC analyst Shane Rau said the market reflected a "significant decline in end demand." IDC says it expects to see a modest decrease in processor shipments for the current quarter.

Rau said processor pricing is volatile and that AMD appeared to gain some share by discounting its prices.

"I think AMD went after some deals that they hadn't gone after before," he said.

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BY Kirk Ladendorf
Source：statesman.com

kladendorf@statesman.com; 445-3622

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