The latest survey from IHS iSuppli show a mixed bag of results for both AMD and Intel. Intel shows better results year-to-year, while it looks worse in Q2 from Q1. AMD on the other hand shows the opposite result, which could mean it is recovering?

The result from IHS iSuppli’s survey looks more interesting than in a long time, where AMD and Intel are moving in different directions. The numbers only show the revenues in percantage of the total processor market each company has – including other types of processor architectures like RISC, and  VIA counts among ”Other”. They don’t represent the market shares each actor has.

  Q2 2010 Q1 2011 Q2 2011
Intel 80.7% 82.6% 81.8%
AMD 11,6% 10,1% 10.4%
Other 7.7% 7.3% 7.7%

Annually Intel increased 1.1%, while AMD dropped 1.2%. A qualified guess is that AMD were unable to compete with Intel for a long time. AMD it had to lower prices in 2010 and with the launch of Sandy Bridge it became harder to keep market shares.

AMD presented a better Q2 with an increase of 0.3%, while Intel dropped 0.8%. The winners were both AMD, and other actors that also increased with 0.4%. The result is in line with AMD’s more competitive lineup with the Brazos platform and Llano that started shipping to OEM and ODM in Q2.

Even if AMD’s shares for Q2 2011 is 19.4%, vs. 17.8% Q2 2010 it is selling products with a lower ASP (Average Selling Point), which results in lower profits per sold unit. Intel has dropped and was in Q2 2011 at 79.9%, while in Q2 2010 it had 81.3%. Intel has managed to maintain profit on the global processor market since it can sell processors at a higher ASP.

Is Llano, and the oncoming Bulldozer what the company needs to get back on track?

It will be interesting to see how these numbers will change for Q3 that ends today. The numbers will take a while, but AMD has started shipping Bulldozer for servers to its closest partners, and had Llano out on the market almost the entire quarter. If it was enough to increase profit, as well as market shares we should have an answer near the end of the year.

The joy will be shortlived for AMD, Intel has Sandy Bridge-E coming, while it is not expected to ravage retail it will make a difference in servers. It is up to AMD’s new 16-cores Interlagos to stand up to Intel’s new platform. Ivy Bridge is expected in about 6 months on the new 22nm process, and will be fighting Llano’s sucessor; Trinity that is due shortly before if the schedule holds. How the new products will affect the two companies is hard to say, the only thing we know for certain is that we are heading into a more fierce battle than in a long time.

Source: IHS iSuppli


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