November 8th, 2005
Intel's Otellini in the hot seat as AMD gains share
According to a report published today by Current Analysis, AMD sold more desktop and notebook systems sold through domestic retail outlets in October than Intel. The margin was 49.8 percent of PCs to 48.5 percent of the market, but it’s a sign that AMD’s technology bets and Intel’s missteps over the last few years are shaking up the high volume processor business. AMD’s domestic retail share for desktops, for example, grew to 67.7 percent, up from 52 percent in September. The count doesn’t include Dell’s prodigious Intel numbers, but AMD’s growth is more than a blip. Coincidentally, News.com’s Michael Singer has a story that Intel stalwart Dell is offering six Athlon 64 processors for sale on its Web site–probably for performance crazed gamers–but so far isn’t building the chip into systems.
After the recent financial disclosure that third quarter results will fall short, in part due to sluggish consumer sales, Dell might be compelled to discontinue its no AMD systems stance…which wouldn’t make Intel happy. Intel CEO Paul Otellini, who took the helm from Craig Barrett in May, once drove a forklift during his early days at Intel to help make the quarter. He’ll have to roll up his sleeves even further during the next year to fend off AMD’s product momentum, the recent antitrust lawsuit brought by upstart chipmaker and others trying to crack Intel’s market hold. Maybe the Apple deal and VIIV, Intel’s digital entertainment technology brand due next year, will give Otellini something to crow about…
Dan Farber, editor-in-chief of CNET News.com, has more than 20 years of experience as an editor and journalist covering technology. See his full profile and disclosure of his industry affiliations.
