Intel and AMD extend their dominance of the microprocessor market

02 July 2008

When microprocessors are mentioned, one name immediately comes to mind, closely followed by its young upstart rival - Intel and Advanced Micro Devices, better knon by rthe acronym AMD, respectively.

Not for nothing do they dominate consumer mind space and computer hardware space, considering that between them they constitute a virtual duopoly of the chip market. And what's more, their influence seems to be on the rise.

Lat year first quarter, Intel and AMD accounted for 91.3 per cent of all microprocessor revenue, with Intel grabbing the lion's share at 80.4 per cent. This year, although Intel's share had reduced somewhat to 79.7 per cent, the two combined had notched up a greater market share at 92.7 per cent.

Notwithstanding the quarterly decline year-on-year, Intel management can take heart from the fact that numbers in the first quarter of 2008 were actually better than the previous quarter, or the last one of 2007. Intel revenues had constituted 78.5 per cent of total international microprocessor sales.

AMD's results were a little different. Although yearly growth has been extremely impressive from the 10.9 per cent in the first quarter of 2007 to 13 per cent a year later, sales had actually declined from the last quarter of 2007 when it had breached the 14 per cent mark.

As for chipmakers other than Intel and AMD, the news wasn't good. They lost nearly a point-and-a-half in global market share year-on-year, dropping from 8.7 per cent of revenues in 2007's first quarter to 7.3 per cent in the first quarter of 2008.