The recent figures from Mercury Research are painting a grim picture for Intel. The data shows that AMD is steadily gaining market share from Intel in desktops, laptops, and even servers. This should be a cause for concern for Intel as they see their dominance being challenged by their competitor. The overall x86 chip market share for Intel might show an uptick, but this is mostly due to the decline in sales of AMD’s SoCs, particularly the chips used in gaming consoles.
One of the major factors contributing to AMD’s decline in market share is the loss of console sales, especially in Microsoft’s Xbox consoles. The cyclical nature of game consoles means that sales tend to fluctuate, and with the end of the current generation of consoles approaching, it was only a matter of time before AMD’s market share took a hit. This decline in console sales is inevitable, but it is still a blow to AMD’s overall numbers.
AMD’s Growing Market Share
In desktop x86 CPU share, AMD has seen a growth from 19.4% to 23% in the second quarter of 2024. Similarly, in laptops, AMD’s market share has gone up from 16.5% to 20.3% year-on-year. The most significant increase has been in servers, where AMD has improved from 18.6% to 24.1% from Q2 2023 to Q2 2024. These numbers clearly indicate that AMD is on the rise, while Intel is losing ground in all three segments.
Despite the buzz surrounding Arm chips, Mercury Research reports that sales of PCs powered by Arm CPUs are actually falling. This seems contradictory, especially with the introduction of new Snapdragon X chips by Qualcomm. However, sales of Chromebooks, which often use Arm CPUs, are also declining. It will be interesting to see how Qualcomm’s new CPUs perform in the market in the coming quarters.
Intel Still Dominant
While Intel might be losing market share to AMD, it is essential to note that Intel still holds a significant position in desktops, laptops, and servers. Intel continues to dominate the market in all three segments, despite the gains made by AMD. Suggestions of Intel’s imminent demise might be premature, as they remain the biggest player in PC processors.
The recent market share trends indicate a shift in the industry dynamics. Intel is facing stiff competition from AMD, especially in desktops, laptops, and servers. The decline in sales of AMD’s SoCs and the rise of AMD market share are clear indicators of the changing landscape in the x86 CPU market. It will be interesting to see how Intel responds to this challenge and whether they can maintain their dominance in the face of growing competition.
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