AMD stealing market share from Intel

AMD managed to surprise analysts by stealing market share from Intel in the second quarter, beancounters Mercury Research said.

According to the report, AMD’s x86 microprocessor market share grew to 19.4 percent during the second quarter, up from 17.8 percent at the same time last year. However Chipzilla’s market share fell to 79.9 percent. A year ago it ruled with 81.3 percent.

The report said that Intel had priced itself out of the market. There was an increased demand for lower-priced PCs as the economic conditions bit.

Dean McCarron, principal analyst at Mercury Research said that .AMD’s latest Fusion chips were in strong demand.

The maker of expensive printer ink HP and Toshiba have embraced AMD’s Llano, which is aimed at mainstream PCs.

HP has released 11 new laptops with Llano, and laptops with the chip priced between US$500 and $700 are also available from Toshiba, Samsung and Acer.

In the first quarter AMD shipped power-efficient Fusion chips for lightweight laptops and desktops, and these had also done really well, McCarron said.

AMD has confirmed that it sold 12 million Fusion processors through the end of the second fiscal quarter.

Intel’s Core i3, i5 and i7 chips based on the Sandy Bridge microarchitecture sold well, but suffered as demand for AMD’s Llano CPUs went up, McCarron said.

Intel itself has admitted that its chip shipments were partly hurt by a weak netbook market during the second quarter, which seems to confirm that Fusion has been making a real impact in the mobile market.

Overall microprocessor shipments were slow, growing by only 0.8 percent year over year, according to Mercury Research.