|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | |
MAY 19, 2004
AMD: Barely an Underdog? It's gaining rapidly again on Intel, especially among consumer buyers, and that could help boost it among corporations The third week of April was a very good one for chipmaker Advanced Micro Devices (AMD ). For the first time in recent memory, desktop computers built with AMD chips outsold those based on processors from archrival Intel (INTC ), 52% to 47%, according to research by Current Analysis of La Jolla, Calif. "It speaks volumes that AMD is O.K. with consumers," says Current Analysis analyst Toni Duboise. "AMD has done something that it hasn't done in a number of years." The numbers show just a part of the larger story: Current Analysis counts retail sales only, so they don't factor in corporate purchases or direct sales such as those by PC leader Dell (DELL ). And AMD still trails far behind Intel in notebooks, the hottest category in computers. Nor did the perennial No. 2 stay on top for long. By the following week, Intel was again No. 1 in desktops, 51% to 47%, though AMD was making significant gains in notebooks. Says NPD analyst Steven Baker: "Intel doesn't tend to let them have that opportunity for very long." HALO EFFECT. Make no mistake, however, the long-running horserace between these two PC-processor makers is getting tight again. AMD's desktop share has doubled from 25% since the fourth quarter. And in the week ending May 1, the latest period for which data are available, AMD claimed 24% of notebook sales, up from 17% the week before. The last time the competition was this fierce was back in the late 1990s, when AMD was aiming its slingshot at Intel's Pentium III chips. One reason for the narrowing race is that consumers continue to get savvier about purchasing computers. Increasingly, they see little difference between the performance and reliability of AMD's and Intel's chips. And it doesn't hurt that Hewlett-Packard (HPQ ), which is No. 1 in retail PC sales and No. 2 overall, has a longstanding relationship with AMD. Three of AMD's top-selling models for the week ending Apr. 24 were HPs, Duboise says. AMD's stellar reputation with PC enthusiasts is also giving it a lift. Computer gamers who demand lots of horsepower have embraced AMD's Athlon64, a 64-bit microprocessor that Intel so far hasn't matched. And while that's a narrow niche, it may have created a halo effect that has enhanced its image with mainstream consumers. "There has been a recent glow," says IDC analyst Roger Kay. EARLY ADOPTERS. The $64,000 question: Will AMD's recent retail success finally translate into acceptance in the corporate market? AMD has a small presence in business PCs, which accounted for 63% of total sales in the first quarter, according to IDC. And Dell, the top seller, remains an all-Intel shop. Duboise believes that consumers are increasingly becoming the early adopters of technology and influencing corporate-buying decisions. And if AMD continues to gain acceptance there, it could see its profile among business buyers rise, too. "The consumer space is a more important market than ever," she says. At least for now, AMD is nipping at Intel's heels again.  By Andrew Park in Dallas Edited by Douglas Harbrecht
BW MALL
SPONSORED LINKS
Buy a link now!Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
