Advanced Micro Devices (AMD) is taking advantage of the increasing demand for low-end sub-$1000 PCs to more than double its market share and apply the pressure to traditional microprocessor giant Intel.
Statistics unveiled by International Data Corporation (IDC) indicate that AMD's percentage of the chip market has risen to 15.5 per cent from 6.6 per cent in the fourth quarter of 1997. In comparison, Intel's quota dropped from 87.1 per cent to 75.7 per cent for the equivalent periodIDC analysts suggested AMD's low-priced chips and aggressive marketing strategy is responsible for the dramatic AMD results.
Industry analyst DataQuest believes that Intel have yet to implement a similar policy and its lack of action in the low-end market is hurting them. Intel sources say that it is a point of concern that they hope to address this year by focusing on rolling out faster and cheaper Celerons to the low end of the market.