The latest figures from Mercury Research have revealed a troubling trend for Intel, as AMD continues to chip away at its market share in both desktop and laptop PCs, as well as servers. While Intel has seen an overall uptick in total x86 chip market share, this growth is overshadowed by AMD’s significant gains in key areas. In the second quarter of 2024, AMD’s desktop x86 CPU share grew to 23%, up from 19.4% the previous year. Similarly, AMD’s market share in laptops increased to 20.3%, up from 16.5% in the same quarter last year. In servers, AMD made impressive strides, improving from 18.6% to 24.1% during the same period.
One significant factor contributing to AMD’s loss in market share can be attributed to declining sales of its SoCs, particularly those used in gaming consoles such as Microsoft’s Xbox. As console sales have dropped, AMD’s market position has been weakened, highlighting the cyclical nature of the gaming console industry. With the current generation of consoles approaching its end, it is expected that AMD will face further challenges in this sector.
Intel and AMD are the main players in the x86 CPU market, and any gain made by AMD directly impacts Intel’s market dominance. AMD’s recent market share growth in desktops, laptops, and servers reflects a steady trend of consumers gravitating towards AMD’s offerings. Intel, on the other hand, has experienced a decline in market share across these segments, slipping from 80.6% to 77% in desktops, and facing similar losses in laptops and servers.
Despite the rise of Arm-based CPUs in the tech industry, sales of PCs powered by Arm CPUs have seen a decline. This includes Chromebooks, which have also experienced a drop in sales. While Qualcomm’s new Snapdragon X chips have garnered attention, their impact on the market has yet to be fully realized. It will be crucial to monitor the performance of Arm CPUs in the coming quarters to assess their market traction.
Although Intel is facing challenges with the loss of market share to AMD, it still maintains a formidable position in the PC processor market. Intel continues to hold the majority of market share in desktops, laptops, and servers, highlighting its enduring presence in the industry. While Intel’s current trajectory may not be as strong as in previous years, it is premature to predict its imminent demise. Intel remains a key player in the PC processor market, and its reputation and market presence cannot be overlooked.
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