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C|Net is reporting that Intel lost some major market share in their fourth quarter of 2005. Their market share dropped 11% from 64.4% to 53.3%. And that was only one quarter! This is obviously bad news for Intel, if it was to continue at that rate for the rest of the year, by 2007 they would only have 7% market share. Now, obviously that’s going to an extreme, but it’s interesting to think about.

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5 Responses for "Intel Loses some Major Market Share"
January 19th, 2006 at 10:15 am
1For a company with a 2.5 Billion NET PROFIT in the FOURTH QUARTER ALONE, the loss of market share is hardly the harbringer of apocalypse that this C|net article makes it out to be. They’re in the middle of a major transition and I’m sure the introduction of the Yonah chips will go a long way to enable intel to stay above the profit curve. As depressing as that is (for no doubt AMD holds a not insignificant advantage over Intel when it comes to gaming) I hope that AMD will take this opportunity to NOT sit on their asses and innovate more and finally get Dell to sell more than just the AMD chips on their webpage.
Since I can’t post links here, I’m sending you a quote: (from {3w}intel{dotcom}/pressroom/archive/releases/20060117corp{dot}htm)
Intel Corporation today announced fourth–quarter revenue of $10.2 billion, operating income of $3.3 billion, net income of $2.5 billion and earnings per share (EPS) of 40 cents. Revenue was below the company’s updated expectation of $10.4 billion to $10.6 billion primarily due to lower than expected desktop processor unit shipments and prices. “2005 was our third consecutive year of double–digit revenue and earnings growth, leading to the best operating results in the company’s history,” said Intel President and CEO Paul Otellini. “Although we fell below our expectations for the fourth quarter, we enter 2006 with exciting new products like the Intel® Core™ Duo and Viiv™. Our industry–leading 65nm process technology is ramping dual–core processors into high volume with an expected crossover in performance segments by mid–year.
January 19th, 2006 at 10:31 am
2The thing about AMD is that their chips have to be significantly faster than Intel chips just to compete. Right now they are, but if Intel catches up to AMD speed in a couple quarters, AMD is going down again. Other than 2% of us geeks, most consumers will take a Intel Celeron over AMD Athlon 64FX just because it’s Intel.
One thing I can’t understand is how AMD took marketshare from Intel on notebook computers: AMD mobil chips suck.
January 19th, 2006 at 1:33 pm
3Cliche, that might happen sooner than you think. Now this might be rumor, but sometime back when I was browsing the web, there was an article up some place that showed some Yonah desktop models with benchmark scores rivaling AMD X2 chips in scores! If you consider the fact that the Intel chips don’t even have an integrated memory controller, then that’s pretty amazing (assuming the benchmark figures were true).
I think what we’ll begin to see is that Intel will capture the majority of the market while AMD will continue to cater to the enthusist sector. Not that Intel will really care….Intel’s plans for world domination will no doubt be helped by their new partner Apple…although apparently Intel is not very happy with Apple’s ad campaings :P
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