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© AMD Electronics Production | March 25, 2011

Intel and AMD: Some things never really change

In a year of major changes for the global microprocessor industry, one thing remained the same: leading suppliers Intel and Advanced Micro Devices (AMD) in 2010 maintained their customary ranks in the market, IHS iSuppli research indicates.
Intel finished the year with 81.0%share of global microprocessor revenue, up a scant 0.4 percentage points from 80.6% in 2009, allowing it to maintain leadership. Meanwhile, AMD ended the year with 11.4% share, down 0.8 points from 12.2% in 2009, keeping it in second place.

The figures present revenue for the entire global microprocessor market, including X86, RISC, and other types of general-purpose microprocessors; the data is not limited to the X86 PC market.© IHS iSuppli

Global microprocessor market revenue snapped back smartly in 2010 following the recession of 2009. Revenue in 2010 surged 25% to USD 40 billion, compared to a 6% decline in 2009.

The microprocessor market traditionally has been dominated by sales of Intel and AMD X86 products to the PC market. However, the year 2010 was marked by the rise of a new platform: the media tablet, led by Apple's iPad—which employed a non-X86 device at its heart designed by Apple and manufactured by Samsung Electronics.

IHS believes unit shipments of media tablets soared to 17.4 million in 2010, up from zero in 2009, with levels expected to grow to more than 240 million units in 2015. As a result, semiconductor revenue from this market segment represent a significant opportunity not just for suppliers such as Samsung, which is already present in the fledgling tablet market, but also for PC processor incumbents AMD and Intel.

Meanwhile, PC microprocessor technology underwent a fundamental change in 2010, with GEMs becoming a major portion of total sales in 2010. GEMs represented more than one-third of total microprocessor shipments for notebook and desktop PCs alike in 2010. Both Intel and AMD announced GEM products targeting the mainstream notebook and desktop segments in 2010, as they raced with each other to keep on top of this new technology trend.

Fourth-quarter market data revealed no significant changes in worldwide microprocessor market shares as well.

Intel accounted for 81.5% of global microprocessor revenue during the period, gaining 0.5% of share compared to a year ago in the 4Q/2009. On a sequential basis, Intel gained 0.7% of share from the 80.8% it held in the 3Q/2010.

For both sequential and year-over comparisons, AMD lost market share, with the greatest loss occurring relative to the 4Q/2009. In the 4Q/2010, AMD accounted for 10.9% of the worldwide microprocessor market by revenue, down from 11.4% in the 3Q/2010, and down from 12.2% in the 4Q/2009.

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