Sandy Bridge popularity increases Intel chip share

Intel capitalised on a rebounding PC market to increase its dominance in the chip industry, riding the popularity of its Sandy Bridge processors.

In the second quarter of the year Intel saw its share of the chip market grow by 1.1 percent from the previous year to 81.8 percent.  Meanwhile AMD saw its own share drop by a corresponding amount in the same period.

Despite failing to move with the times in the tablet market, Sandy Bridge was a success for Intel, helping inrease its commanding lead over its chip rivals.

Intel pushed its second Sandy Bridge chips strongly and were rewarded with plenty of takeup.  In fact Intelindicated that it was the biggest production ramp it has seen to get the Sandy Bridge chips into PCs.

The popularity of Sandy Bridge with corporate firms was considered of particular benefit to Intel according to Matthew Wilkins at IHS iSuppli.  So while a lot has been made of Intel being affected by the rise of mobile PCs, in the first half of the year it was corporate PC sales rather than consumer that gave Intel an edge.

This is because a recovering PC market saw increasing demand from IT departments to upgrade, with Intel always well placed in the corporate sphere.  The global PC market saw growth, with shipments increasing by 3.7 percent from 82.6 million last year, up to 85.6 million in 2011.

Meanwhile fear over the economy stunted consumer demand, with many splashing their cash on tablets instead, but did not cause too much effect overall on Intel’s fortunes in the second quarter.

Although Intel appeared to see off competition from AMD over the course of a year, sequentially the outcome was different.  AMD saw gains in terms of revenue share, which rose to 10.4 percent, a 0.3 percent increase from the preceding quarter.

This has come down to the firm knocking out more of its Fusion chips, reversing a continued shipment decline over the three previous quarters.