Published in PC Hardware

Intel is draining AMD

by on08 July 2015


Not just soft sales

AMD is losing ground against Intel and it is not just because of poor PC sales.

It is true that both Intel and AMD have been suffering from a decline in PC and server sales lately, but figures from Amercia's markets show that AMD is being eaten alive by Intel 

Firstly AMD's results show a dropoff compared with Chipzilla, which continues to pull ahead. AMD's revenue has been headed in the wrong direction.

AMD's revenue of $5.5 billion last year is essentially flat with 2012 and down 14% from 2010. And while Intel hasn't been exactly growing like wildfire, it's been steadily increasing revenue.

When you compare the two with each other the gap gets worse. In 1990 AMD had revenue that was more than a quarter of Intel's. That ratio climbed back to about 15 per cent on AMD's resurgence in the mid 2000s.

Now, AMD's revenue is 9.9 per cent of Intel's.

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According to a note to clients from Christopher Roland at FBR there is little reason to buy a new PC with this version of Windows.
New versions of Windows give PC makers a boost as consumers bought new machines – but that's not likely to be the case with Windows 10 since Microsoft is writing the software to run perfectly well on existing PCs. Windows 10 is also free upgrade to current

Windows users. AMD is expected to lose an adjusted 37 cents a share this year.

This means that Microsoft's free Win10 could be the nail in AMD's coffin. Historically, consumers have overwhelmingly upgraded their PC operating systems through the purchase of new PC hardware.

"While this was our original outlook for the Win10 upgrade cycle, we recently reduced our 2H15 and 2016 PC outlook as Microsoft is offering consumers a free Win10 cloud upgrade for all Win 7 and 8.1 owners," Rolland said.

Last modified on 08 July 2015
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