Intel and AMD benefited from strong sales of computers in the third quarter and managed to gain share in the global microprocessor market due to robust sales of PCs and servers and the cessation of the companies’ brutal price war
Global PC shipments, including desktops, notebooks and entry-level servers, amounted to 68.1 million units in the third quarter, up 13.8 percent from 59.9 million during the same period in 2006, and up 11.1 percent from 61.3 million in the second quarter of 2007.
As per an isuppli research, the companies in their third-quarter financial calls said they had seen a reduction in the aggressive pricing that has ruled throughout most of 2007. This signifies the beginning of the end for the X86 microprocessor price war.
“Pricing trends were influenced by many variables, including the consistent strength in computing markets, Intel’s rapid migration to its new Core 2 architecture microprocessors, and the increasing penetration of multi-core products in the market,” Says Principal Analyst ; Mathew Wilkins .
However, while the pricing battle may be coming to an end, Wilkins believes that the competition will continue to be extremely fierce.
“AMD’s launch of Barcelona and Barcelona-derived products gives the company a stronger portfolio with which to compete, and with Intel shipping its products based on its new 45nm manufacturing process, neither company is resting on its laurels,” Wilkins noted.
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