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AMD plummets in microprocessor market ranking

When it comes to processors for smartphones and tablet computers, companies like Qualcomm and Samsung have come a long way over the last several years. Processors from both manufacturers have turned up in a wide range of devices, with Samsung powering its own smartphones and those from Apple.

Two of the biggest companies in the microprocessor world are Intel and AMD. While Intel has continued to have success in the mobile processor market, even though its processors aren't as power efficient as offerings from other companies in the smartphone and tablet world, AMD has seen its market share continue to decline.
 
A new report his week from IC Insights takes a look at the overall microprocessor market for 2012. A significant downturn in the notebook and desktop computer market combined with a significant increase in sales for tablet and smartphone devices saw AMD plummet from second place to fourth place in 2012.
 
Intel still held the top spot with 65.3% of the overall microprocessor market.

Qualcomm now occupies the second place spot with 9.4% of the market courtesy of its ARM mobile processors for smartphones and tablets. Samsung came in the third spot with 8.2% market share thanks to a huge number of processors in production for Apple devices. AMD was in fourth place with only 6.4% market. Freescale was far behind with 1.9% of the market followed by NVIDIA with 1.4% market.

The overall microprocessor market for 2012 was worth $56.5 billion. The downturn in the personal computer market did see sales growth slow to 2% for the year after growing by 19% in 2011. The forecast is predicting microprocessor sells will increase by 10% for 2013 to $62 billion.

Source: Icinsights



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RE: Market Manipulation
By Coldfriction on 5/21/2013 12:44:31 PM , Rating: 2
As a note, Nvidia is the company that should be bashed everywhere; they are dead last. Somehow the dead last company is worth $14 Billion while AMD is worth $3 Billion. AMD has approximately 6% of the market share, THREE times that of Nvidia and it's market value is 1/4 as much? If there is a chip designer to invest in right now, it's AMD.


RE: Market Manipulation
By BRB29 on 5/21/2013 2:17:01 PM , Rating: 2
Workstation graphics are very expensive and they own more than 90% of that market.

AMD sells value while NVIDIA likes to sell premium more. NVIDIA is also in the mobile market while AMD isn't.


RE: Market Manipulation
By Coldfriction on 5/21/2013 4:18:41 PM , Rating: 2
Now tell me how that factors into the fact that they're dead last in the comparison made? This news is being used to drive AMD's shares down, the same news should have the same effect on Nvidia no? Nvidia's Tegra line is considered one of their biggest failures; it was even dropped for the Nexus 7. Project Shield is a joke. Profit margins for AMD aren't 0%; they move a lot more money around than Nvidia does, even if they've done so poorly in the past without being profitable.

Where in this article does it mention the recent wins that AMD has, such as pulling talent from Apple and Nvidia? 25% of Nvidia's profit during the life of the original Xbox came from it. Nvidia didn't just forget to try to get into the PS3 because of "opportunity costs", it made a profit there as well. Nvidia isn't in ANY game console for the first time in over 10 years. Nvidia is about to become stale if not in decline.

You made my point. This article is a rediculous piece of news that isn't. They are trying to show you the industry through tainted glasses. Good journalism would provide raw data and not percentages and ranks to determine how good a set of businesses is doing. Believe it or not, every business listed can grow and the industry as a whole could be getting better regardless of how they are ranked, but that's not how it's painted, is it?


RE: Market Manipulation
By BRB29 on 5/22/2013 8:36:32 AM , Rating: 2
quote:
Now tell me how that factors into the fact that they're dead last in the comparison made?


Because Quadro parts normally go for $300-5000 each.
Their consumer equivalent go for $70-500.
NVIDIA owns the workstation professional market. Their ASP has normally been higher than AMD.

quote:
Profit margins for AMD aren't 0%; they move a lot more money around than Nvidia does, even if they've done so poorly in the past without being profitable.


Look at how much AMD have to pay in interest expense for their billions in loans. AMD HQ and some of its development is in the US. NVIDIA is entirely overseas where labor and tax is much lower. AMD have less cash than NVIDIA. They usually move money around through loans and stock. They sold their Austin HQ because they're low on cash.

quote:
Where in this article does it mention the recent wins that AMD has, such as pulling talent from Apple and Nvidia? 25% of Nvidia's profit during the life of the original Xbox came from it. Nvidia didn't just forget to try to get into the PS3 because of "opportunity costs", it made a profit there as well. Nvidia isn't in ANY game console for the first time in over 10 years. Nvidia is about to become stale if not in decline.


I'm pretty sure NVIDIA is not in the next console because they cannot give a 2 for 1 package or x86 licensing like AMD. Sony and MS are getting both CPU and GPU in one package. You also noticed that their contract is to build the parts instead of just collecting royalties. I'm pretty sure Intel wouldn't like it if AMD gave away x86. AMD will see a large increase in revenue but I'm not sure about profit margin. At least they are sure to survive for the next 7-10 years.


RE: Market Manipulation
By ilt24 on 5/21/2013 9:03:02 PM , Rating: 2
quote:
Somehow the dead last company is worth $14 Billion while AMD is worth $3 Billion.

I imagine this has something to do with it.

In Q1 AMD lost $146M on $1.09B in revenue.
In Q1 Nvidia made $174M on $1.11B in revenue.

I also imagine AMD MPU sales being down 21% last year while Nvidia's were up 29% could have something to do with it.

Oh and BTW Nvidia is worth $9B not $14B.


RE: Market Manipulation
By Coldfriction on 5/21/2013 11:22:22 PM , Rating: 2
You can't go throwing out legit details in a smear campaign dude. This is a discussion about 2012 that hit the stock market negatively today. Please tell me how this became major tech news today. Usually tech news doesn't look six months in the past, it typically looks six months into the future. I just want to know why this is news and on EVERY tech site; it feels like a political smear campaign.


RE: Market Manipulation
By ilt24 on 5/22/2013 7:45:25 AM , Rating: 2
The info come from a Semiconductor Market Reseach firm IC Insights. Just about ever week they release an article with some market snapshot as a way to promote their services. These snapshots often get parroted by news services and tech sites.

Here is a link to other recent articles they put out.

http://www.icinsights.com/news/


RE: Market Manipulation
By Coldfriction on 5/22/2013 9:53:33 AM , Rating: 2
How does this sound, "Republicans lose the election!!!" That is how this regular "just about every week" snapshot is presenting information in the tech world. It shouldn't be news. Everyone knows AMD is going bankrupt as of six months ago, but somehow it's stock has climbed over 70% since then. This isn't news man, and it is the original author's job to defend the numbers and stats they push, not yours. What you know everyone has known for a long time, but this news helped pushed AMD's stock down 5% on a good news day. And yes, I own AMD stock.

Wouldn't it be better worth discussing how even Intel sees unification of the CPU and GPU as the future of computing? Where is AMD going to be when essentially all but the most hardcore home users buy an Xbox One, PS4, Steambox, etc. instead of a PC for their large screen computing needs? Xbox One runs Windows 8 (probably the walled garden RT version). Steambox is rumored to run on Linux and allow Windows to be installed. Small premade all-in-one systems hooked up to a fancy large screen is the future.

Nvidia's strategy is to put an arm cpu in the graphics card whereas the cpu manufacturers vision is that there won't be a graphics card except for the most enthusiastic of users. Nvidia won't survive well on professional graphics cards only, especially if you look at how companies are moving that to the cloud.


RE: Market Manipulation
By ilt24 on 5/22/2013 11:53:15 AM , Rating: 2
Got it...everyone picks on AMD and Nvidia sucks.

Thanks.


RE: Market Manipulation
By BRB29 on 5/22/2013 12:01:54 PM , Rating: 2
quote:
Nvidia won't survive well on professional graphics cards only, especially if you look at how companies are moving that to the cloud.


So the people running the servers buy the Quadro instead of the users.


"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton














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