The latest figures from Mercury Research are painting a grim picture for Intel as it continues to lose market share to AMD in desktop, laptop, and server CPUs. According to the report, AMD has experienced significant growth in the x86 CPU market, with its share in desktop CPUs growing from 19.4% to 23% year-on-year. In laptops, AMD’s market share has increased from 16.5% to 20.3%, and in servers, the company has seen an improvement from 18.6% to 24.1% over the same period.
The overall uptick in Intel’s total x86 chip market share is primarily due to declining sales of AMD’s SoCs, particularly in gaming consoles. With Microsoft’s Xbox console sales plummeting, AMD’s loss in this sector was inevitable given the cyclical nature of game consoles. However, it’s essential to note that Intel and AMD are the only players in the x86 CPU market, making AMD’s gain synonymous with Intel’s loss.
Despite the increasing buzz around Arm CPUs, Mercury Research indicates that sales of PCs powered by Arm CPUs are on the decline. The introduction of Qualcomm’s new Snapdragon X chips has not yet made a significant impact, given the faltering sales of Chromebooks. It will be interesting to see how Qualcomm performs in the market in the coming quarters, especially with the recent release of CPUs compliant with Microsoft’s Copilot+ AI standard.
Intel’s Continued Dominance
While Intel may be facing challenges in certain segments of the CPU market, it still maintains a stronghold in desktops, laptops, and servers. The company holds the majority of market share in all three segments, emphasizing its continued dominance in the PC processor industry. Despite the setbacks, it is premature to suggest that Intel is on the brink of demise.
The latest market share figures indicate a shifting landscape in the CPU market, with AMD making significant gains at Intel’s expense. The decline in AMD’s sales in gaming consoles, coupled with the growth in desktop, laptop, and server CPUs, highlights the evolving dynamics of the industry. As technology continues to advance, it will be interesting to see how Intel and AMD adapt to meet the changing demands of consumers.
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