SAN FRANCISOIntel Corp. increased its dominance over the worldwide microprocessor business in the third quarter, accounting for 80.4 percent of all revenue in the product category, according to market research firm iSuppli Corp.
Advanced Micro Devices Inc. (AMD), Intel's closest rival in microprocessors, accounted for 12.1 percent of worldwide revenue in the category during the third quarter, down from 13.9 percent in the third quarter of 2007, iSuppli said. AMD's market share improved sequentially by 0.1 percent over the 12 percent it held in the second quarter of this year, the firm said.
By contrast, Intel's market share increased both sequentially and year-to-year. The No. 1 semiconductor company accounted for 80.1 percent of microprocessor revenue in the second quarter of this year and 78.7 percent in the third quarter of 2007, according to iSuppli (El Segundo, Calif.).
In a statement distributed Wednesday (Oct. 29), Matthew Wilkins, iSuppli's principal analyst for compute platforms, said Intel's growth is due largely to the strength of the company's product portfolio in the notebook segment.
Intel and AMD's share growth in the third quarter came largely at the expense of smaller suppliers, iSuppli said. The research firm said it believes the increasingly competitive environment resulting from the global financial crisis is the key reason for this.
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While there were some signs that PC demand weakened in the third quarter, iSuppli said, early estimates indicate that PC shipments actually reported healthy growth over the third quarter of 2007, up in the region of 12 to 14 percent. The notebook segment retained its strength and momentum, and continued to be a key growth driver for the PC industry in the third quarter, iSuppli said.
The research firm is maintaining its current PC forecast, calling for unit growth of 12.5 percent in 2008.