Wednesday, April 19, 2006

AMD revenue share of the x86 market reached 18%

Intel just reported its 1Q06 results, total revenue dropped 5% and EPS dropped 34% from 1Q05. Total revenue from microprocessors was $6.2 billion down from $7.329 billion . This means AMD has grown to 18% in revenue terms, from 15% in 4Q05.

If we look at microprocessor revenue alone. From 4Q05 to 1Q06, Intel's revenue from desktop and server dropped from $4.929 billion to $3.892 billion, Intel's revenue from mobile dropped from $2.4 billion to $2.35 billion. Revene from desktop/server dropped $1 billion in one quarter. Intel claimed that ASP was down only slightly.

For 2Q06, INTEL projected a further revenue drop to $8.0 - $8.6 billion, below seasonal patterns, gross margin will be reduced to 49%. With this kind of revenue and margins, 2Q06 EPS will be 10 cents.

In just one quarter, Intel's cash has been reduced from $11.3 billion to $7.8 billion. Intel has long term debt of $2.6 billion.

Intel's Inventory went up from $3.12 billion to $3.55 billion, this is almost a full quarter of inventory.


Anonymous the architect said...

My guess is that AMD is about half way there, maybe a bit more. Once AMD gets to 30% to 35% of revenue share, that will be the tipping point and Intel's doom will be sealed.

Back in the day of Andy's Intel, anyone who suggested a new font would cure the company's ills would have been fired on the spot.

There is a difference between people who know how to run a technology company and the current infestation of hucksters, morons, marketing droids, and cheapsters that run Intel today.

And the difference is reported in the news everyday.

2:21 PM, April 19, 2006  
Anonymous Anonymous said...

So just before Conroe introduction, AM2 on the table AMD will reach 20% of the market revenue. The real big push for AMD should mean AM2 K8L launched at once. 15-20% performance improvment, 65nm rollout in August, SocketF Opterons in the same timeframe. AMD has 12-15 months with doubled capacity to achieve the real 30-35% percent of the market. But this is possible only where AMD can enjoy another 20% performance margin over Conroe and FX as a pure performance king.

2:29 PM, April 19, 2006  
Anonymous Jeach! said...

Go figure! Intel anounces these kind of numbers and the stock goes up 1% in after hours trading?

I would completely disagree that AMD is half way there. The numbers are down because poeple are in a 'wait-and-see' mode. Once they spruce up capacity and the Conroe is in all channels, revenues will pick up again by the end of 2006.

AMD should continue to grow too.

I would agree that younger people relate with AMD and that Intel has an older following. But I think your discounting the influence that this older generation has.

For example, at my workplace, the CEO has strict orders that all PCs are to be purchased from DELL.

AMD does not only have a technological fight on its hand as most people might think.

They also have to fight:

a) power-of-the-press: analysts who's firms have billions invested in Intel.

b) one of the worlds most powerful brand

c) an older generation of Intel followers who are extremely influencial to corporate purchases.

5:48 PM, April 19, 2006  
Blogger Sharikou, Ph. D said...

When AMD beat EPS estimates by 30% and grew 70% year/year. Reuters and AP had the following headlines:
"AMD has Q1 profit, sees Q2 flat to down "

Intel reported 15% Q/Q drop and projected even more drop for 2Q06. The Reuters headline was

"Intel net falls 38 pct but stems market share drop"

See the difference?

American public is always getting screwed in their brains by the ruling class, politically and economically.

6:50 PM, April 19, 2006  
Anonymous the architect said...

Sharikou said: "American public is always getting screwed in their brains by the ruling class, politically and economically."

Now ain't that the truth. And don't it hurt all those semi-awake geek types to hear it. The ones who fashion themselves free of the matrix, but are trapped like flies in amber.

Talk about brain screwing makes me want to start using words like pedagogy, praxis, and oppression.

But these words would be lost on the masses. Who, unfortunately, are too dumbed down to know how dumbed down they are.

Adult minds who want to grapple with the bars can visit:

7:53 AM, April 20, 2006  
Blogger Sharikou, Ph. D said...

I got information that Intel PR is asking various media to not publicize its bad 1Q06 results. It's money controlling media.

10:26 AM, April 20, 2006  

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