DOW JONES NEWSWIRES
Intel Corp. (INTC) recorded a year-to-year increase in its
third-quarter share of global microprocessor revenue, as it
continued to expand its lead over rival Advanced Micro Devices Inc.
(AMD), according to technology researcher IHS Inc. (IHS).
Though Intel has warned its fourth-quarter revenue will fall
short of expectations, the company is still expected to expand its
lead in the global semiconductor market for the entire year of
2011, IHS said.
For the third quarter, Intel booked 83.7% of global
microprocessor revenue, up from 80.9% a year ago and 82.5% in the
prior quarter. AMD accounted for 10.2% of revenue, down from 11.45%
a year ago and 10.53% in the second quarter.
"The boom in media tablet [computer] sales has packed both
upsides and downsides for Intel--hurting its business in netbook
[computer] microprocessors--but boosting its sales of chips used in
data centers to support cloud computing," said Matthew Wilkins,
principal analyst for compute platforms research at IHS.
IHS said Intel was able to outperform the overall market in the
third quarter due to its broad product line that addresses both the
consumer and business side of the microprocessor business. Intel,
whose Atom microprocessors power the majority of netbook computers,
has been hurt by the declining demand for netbooks in 2011 as
consumers turn toward media tablet computers. In the third quarter,
Intel said its Atom microprocessor and chipset revenue fell 32%
from a year earlier.
However, the chip maker saw continued strength in the latest
quarter from the sale of microprocessors for use in data centers
because of rising demand from the mobile and cloud-computing
markets. Consumer and enterprise spending on the public segment of
the cloud is expected to surge to $110 billion in 2015 from $23
billion in 2010, IHS noted.
Earlier this month, Intel warned that its fourth-quarter revenue
will fall about $1 billion short of its previous guidance as
shortages of hard-disk drives, due to flooding in Thailand, are
expected to hurt its core personal-computer market for the next few
months.
In October, Intel reported another record quarter--its sixth in
a row for sales--as the chip maker shrugged off worries about a
softening personal-computer market and benefited from strength in
notebook computers, emerging markets and its business products.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com