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Desktop chip price battle looms as AMD prices Trinity aggressively

Agam Shah | Oct. 3, 2012
A pricing battle is looming in the desktop chip market after Advanced Micro Devices shipped aggressively priced Trinity desktop chips, which might prompt a price-reduction response from Intel, analysts said.

"Given the competitive position AMD has on the graphics side they're going to move a lot," Moorhead said.

It appears that AMD is making a market-share move in the channel, which is the easiest way to get the attention of PC makers in emerging markets, Moorhead said.

"Intel will undoubtedly need to react. And I believe that they will react because they need business as much as AMD," Moorhead said.

Intel and AMD have had a see-saw market share battle over the last few years. At the end of the first quarter this year, Intel's market share dropped to 80.2 percent from 81 percent in last year's first quarter, while AMD's market share rose to 19.1 percent from 18.2 percent, according to numbers released by Mercury Research.

For the last few years, Intel's market share has been hovering at around 80 percent for x86 processors, with AMD's market share hovering in the 19 percent to 20 percent range. The third x86 player, Via Technology, largely sells netbook and embedded chips and its market share is under 1 percent.



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