AMD has been having a rough fiscal year with significant losses, but the chipmaker is trying everything to return to profitability. The company spun off its foundry operations this year and last week AMD announced that it was merging its CPU and GPU operations into a single department.
Over the last five quarters, AMD has posted declining market share reports PC World. That changed during Q1 2009 with AMD growing its market share as Intel's market share declined. The share of the market AMD holds reached 22.3% for the quarter, a growth of 4.6% compared with Q4 2008.
Intel saw its market share slip 4.7% to 77.3% of the entire CPU market reports IDC. PC World reports that AMD can thank a pricing advantage over Intel for its increased market share. A strong surge in desktop shipments also fueled AMD's growth. AMD saw a total increase in shipments of 13% while Intel faced a 16% decline in shipments for the quarter.
The reason for Intel's decline in shipments is blamed in part on suppliers not purchasing as they depleted inventory of excess mobile processors, particularly Atom parts. Shipments of Atom processors dropped 33% in Q1 2009.
AMD's market share for mobile processors reached 15%, an improvement of 4.7% for the quarter. Intel's portion of the market dropped to 84.3% from 89.1% the previous quarter. AMD did see declines in its server processor market share. AMD lost 1.2% of the server market, all of which was picked up by Intel bringing it to 89.3% of the server market.
Global processor shipments declined for the quarter to reach about 65 million shipped during Q1 2009. That number marks a 13% year-over-year decline in shipments and a 10.9% decline compared to Q4 2008.