Intel vs AMD: The battle for market dominance

The continuing clash of processor vendors AMD and Intel has undergone one of its most intensive periods. Challenger AMD recently launched its first quad-core x86 microprocessor. The belated launch of the long-awaited server chip code-named Barcelona finally brought to market the “game-changing” technology AMD is promising with what it calls the “world’s most advanced x86 processor ever designed and manufactured”.

Beyond the technological or even economic appeal of Barcelona, channel partners and market watchers are just as excited about the prospect of AMD finally challenging market leader Intel with something new again.

Not to be outdone, Intel is aiming to extend its performance lead over AMD with the introduction of the industry’s first quad-core processors designed for multi-processor servers. The chip giant has rolled out six quad-core Xeon 7300 series processors, which deliver more than twice the overall performance and more than three times the performance per watt of its previous generation of dual-core server chips. The chips are the last to be converted to Intel’s core micro-architecture, a process that has been under way since 2006.

New research from iSuppli Corp estimated that AMD made greater gains than originally thought, in terms of microprocessor market share, in the second quarter of the year. AMD in the second quarter of 2007 gained 2.5 percentage points compared to the first quarter to take a 13.4 percent share of overall microprocessor revenue. The overall microprocessor market consists of RISC and general-purpose devices, as well as the x86-type chips for PCs sold by AMD and rival Intel.

Meanwhile, Intel in the second quarter suffered a two percentage point decrease in revenue share, giving it a still-commanding 78.8 percent portion of the market. This was far greater than the preliminary 0.5 percentage-point increase for Intel and the 0.5 percent increase for AMD iSuppli estimated in July.

Diagnosis 1: Hector Ruiz, Chief executive officer of AMD:

With the launch of the original AMD Opteron processor in 2003, AMD forever changed the x86 computing landscape. The Quad-Core AMD Opteron processor launch is a similar moment. We’re bringing to market the world’s most innovative x86 processor ever designed. I hoped we would have launched our new quad-core products earlier, but the timing doesn’t impact the fact that we are delivering a best-in-class product designed first and foremost to best meet the needs of our customers. Our competitor may have enjoyed a brief window of exclusivity in offering a quad-core product, but that window is shut. The door is wide open for AMD as we believe we are delivering a solution that will prove to be the smarter choice.

We are delivering the most advanced x86 quad-core processor on the market and we have helped prepare the channel better than ever before. We have nine validated server platforms at launch, and AMD’s channel partners can be early to market with Quad-Core AMD Opteron processor-based solutions. We have more than 50 quad-core ready platforms available through leading OEMs. All of these are upgradeable to Quad-Core AMD Opteron processors with a switch of the chip and a BIOS flash. Later this year you’ll see greater channel enablement, including continued rollouts from AMD’s OEM and system-builder partners, and higher-frequency quad-core parts. You’ll also continue to see more validated platforms as we continue to enhance our channel programs.

Ruiz was speaking with Damon Poeter of CRN US.

Diagnosis 2: Andrew McLean, Sales manager of Intel A/NZ:

Intel is executing really well on its roadmap strategy, leading the market with products based on our current generation 65nm processor.

The Intel Core 2 Duo processor has become mainstream just one year after launch. We’ve already sold well over one million quad-core processors, and we now have a seven month time-to-market and performance advantage over other market players. On top of this, Intel has delivered the fastest PC enthusiast quad-core processor in the QX6850, and we’re enjoying a strong run with our latest mobile platform, Intel Centrino Pro.

At the business level, vPro is taking off locally and around the world with over 350 companies deploying the vPro platform
today, just one year after launch. The launch of our next generation of vPro technology earlier this month will only accelerate this demand.

So what happens next? Where is Intel focused for growth moving forward, and why do we feel as a company that we’re in the best shape to take the initiative in the chip market?

The answer is 45nm. The “Penryn” family of 45nm products are crucial as Intel positions itself for sustained competitive advantage. With 45nm, we’ll move ahead in the spaces we’re known for today – mobile, desktop and server – while positioning ourselves as a company to enter new spaces such as consumer electronics, ultra-mobile PC, low-cost PCs for emerging markets, system on chips and more.