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Updated
August 5, 2006
Intel May Grab Ground Lost to Rival AMD
by Dan Goodin
Associated Press
Published in the Times Union, Saturday, July 8, 2006 page B10SAN FRANCISCO—Intel Corp.'s attempt to stanch the loss of market share to Advanced Micro Devices Inc., its smaller rival in the computer microprocessor business, appears to be working and may allow it to gain lost ground over the next six months, analysts said Friday.
AMD late Thursday warned second quarter revenue would be about $1.22 billion, or about 9 percent below the previous period. In April, the Sunnyvale-based company had forecast revenue that would be flat or slightly below first-quarter sales of $1.33 billion. It pinned the lower estimate on declining sales of processors for desktop and notebook PCs.
The disclosure came as an abrupt reversal for AMD, which over the past year has picked up about 5 points of market share, mostly at the expense of Intel, according to Mercury Research. With AMD's share hovering around 21 percent, company executives last month said they were preparing to supply 30 percent of the market's needs by 2008.
Steep price cuts from Intel, the world's biggest chip maker, appear to be throwing a fork in those plans, analysts said. Over the past few months, Intel has slashed prices for its PC processors by as much as 30 percent.
Intel, whose processors have been largely outgunned by higher-performing chips from AMD, also has been talking up future price cuts that are to coincide with the release of three new products, due by midsummer
AMD shares fell 27 cents, or 1.1 percent, to close at $23.56 Friday on the New York Stock Exchange. Intel lost 29 cents, or 1.5 percent, to $18.56 on the Nasdaq Stock Market.
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