New reports show increased AMD market shares in Europe, Intel puts on a brave face and shows record earnings in Q3 2019
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Even though Intel wants us to believe it is doing great by showing off those record earnings from Q3 2019, the reality is a bit different, to say the least. Intel is actually in quite the predicament as the company finds itself unable to meet CPU market demand, and this in turn is helping AMD to see increased market shares in key sectors.
A closer look at Intel’s Q3 2019 financial report reveals that the profits are marginally better on A YoY basis (just 6%), while desktop CPU volumes fell 10% compared to Q3 2018. Intel managed to mitigate this problem by upping the average selling prices for its high-performance prices. Nevertheless, this strategy is not proving that good anymore, since Intel was recently forced to slash most of its HPC CPU prices almost by 50% across the board. Additionally, the CPU giant is still trying to figure out the CPU shortage problem, which has led many OEMs to try out AMD’s solution, and this is clearly demonstrated through reports that show AMD’s market ascension.
According to a new report coming from market analysis firm Context, AMD’s European market share has increased from 7% in 2018 to 12% in Q3 2019. More precisely, AMD-powered system shipments increased from 355,000 to 629,000 over the course of this year. The highest acceleration was recorded in the retail market, where AMD’s share increased from 11% to 18%. On the other hand, the business sector only recorded a 3% share increase, from 5% to 8%.
Most of Intel’s shortage problems come from its efforts to get the 10 nm nodes up and running, since it does not want to fall behind in the performance race against AMD’s threatening 7 nm architecture. In a response to recent complaints coming from HP and Lenovo regarding its CPU shortages, Intel mentions that it will continue to prioritize available output toward the newest generation Intel Core products that support its customers’ high-growth segments, but it also plans to further increase the output capacity in 2020. It remains to be seen if the CPU giant can finally stabilize in this regard. Meanwhile AMD is freely chipping away at the retail and server market shares.