According to the latest numbers from Mercury Research, Intel managed to capture 80.5% of the PC processor market for Q1 2007, from the 74.4% the company held during Q4 2006. The increases per segment come in at 8% for the desktop market, 4% for the notebook market and 7% for the server market. For Q4 2006, Advanced Micro Devices had a share of 25.3% but Intel suffocated it down back under the 20% threshold. AMD has responded to the best of its ability to Intel"s strong Core 2-based product family and the company"s steady stream of price cuts but unfortunately the company has only seen its average selling prices (ASPs) fall along with unit sales.
The company also made a critical error by oversupplying OEMs with processors when they couldn"t deliver on sales forecasts while at the same time leaving channel partners out to dry with processor supply. The increased pricing pressure along with disappointing sales from OEM coupled with the strong performance of dual-core and quad-core processors from Intel has taken its toll on AMD. The company posted a $611 million USD net loss in Q1 2007 and announced that it would restructure its business to cut costs.