Desktop processor sales experience biggest decline in 30 years as AMD gains market share

Big Picture: A new research report shows that desktop processors have not escaped broader economic trends such as inflation and falling product demand. The tech industry was down in the second quarter, and yet AMD is somehow doing a great quarter, outperforming archrival Intel.

Mercury research reports (by using Tom’s equipment) that last quarter’s desktop processor shipments showed the biggest annual decline since the group began keeping records in 1994. One researcher suspects this is the biggest decline since 1984. .

As the pandemic economy appears to be coming to an end, this decline in demand has manifested itself in poor reporting in various areas. Intel lost half a billion dollars due to a 22 percent decline in revenue compared to last year. Nvidia’s gaming revenue has fallen by a third. Phone shipments have fallen for the fourth consecutive quarter, Chromebook shipments are down 50% year-over-year, and tablet sales growth is flat. One of the few companies that did well was AMD.

Earlier this month, AMD reported a 70 percent increase in revenue year-over-year, which briefly made it more valuable than Intel. Mercury’s report is also bullish on AMD, showing that their market share is growing relative to Intel in many areas.

AMD’s share of the desktop segment grew 2.3% quarter-on-quarter and 3.5% year-over-year. Mercury believes that AMD managed to dodge the forces that hurt Intel.

In notebook and mobile processor shipments, the drop in demand led to a year-over-year decline for AMD and Intel, but less of an impact on AMD. Thus, AMD’s market share increased by 2.3% quarter-on-quarter and 4.8% year-on-year compared to Intel.

Team Red achieved a similar increase in server block market share of 2.3% qoq and 4.4% yoy, representing AMD’s biggest quarterly gain in the server segment since Mercury began keeping records in that segment in 2017.

Similar trends emerged in last month’s Steam Hardware Survey, where AMD’s share of processors rose 2.22% from the previous month.

Both Intel and AMD are planning to release new desktop processors this year. The AMD Ryzen 7000 series will be available next month, while 13th Gen Intel processors could arrive in October. AMD also has new Epyc server processors scheduled for later this year, while Intel has delayed the release of Sapphire Rapids server processors, likely until 2023.

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