According to a report by analysts, the UK based chip technology company Arm Ltd's growth in the global PC market decelerated in the fourth quarter of 2022, while almost a third of the market share for central processing units was taken over by Advanced Micro Devices Inc. (AMD) in the same quarter.
The growth of AMD's market share has been at the expense of the market share of Intel Corp., which still dominates the market for the processors that are referred to as x86 processors, which are compatible with widely used operating systems like Microsoft Corp.'s Windows. According to Mercury Research, Intel had a 68.7% market share for x86 processors in the fourth quarter compared to AMD's 31.3%, which was an increase from 28.5% a year earlier.
The report by Mercury Research President Dean McCarron stated that the PC chip market was experiencing its worst decline since the 1980s and may have ever experienced in the history of the sector. Since the pandemic, when PCs and laptops were in high demand for working from home, consumers and businesses have scaled back their purchases due to rising inflation and uncertainty in the economy.
For AMD and Intel, the slowdown, however, has taken a different course. While Intel acknowledged that it had "stumbled" in its efforts to compete with its longtime rival, AMD outperformed Wall Street sales expectations last month, forcing significant employee pay cuts at Intel.
There were no comments from AMD as well as Arm on the analyst report.
However, the decline in PC sales has also had an impact on Apple Inc.'s Mac computer lineup, which is the main market for Arm-based PC chips.
According to Mercury, Arm PC chips, which are currently holding a 13.3% market share for PC chips, up from a 10.3% share a year ago, are followed by Apple's own internal chips and Qualcomm Inc.'s most recent PC chips for Windows machines.
Ahead of an anticipated initial public offering later this year, Arm, which is owned by Japan's Softbank Group Corp (9984.T), has made expansion into new markets like PCs a key component of its sales growth strategy. Arm licenses its technology to firms like Apple and Qualcomm so that they can use it to create PC chips.
(Source:www.economictimes.com)
The growth of AMD's market share has been at the expense of the market share of Intel Corp., which still dominates the market for the processors that are referred to as x86 processors, which are compatible with widely used operating systems like Microsoft Corp.'s Windows. According to Mercury Research, Intel had a 68.7% market share for x86 processors in the fourth quarter compared to AMD's 31.3%, which was an increase from 28.5% a year earlier.
The report by Mercury Research President Dean McCarron stated that the PC chip market was experiencing its worst decline since the 1980s and may have ever experienced in the history of the sector. Since the pandemic, when PCs and laptops were in high demand for working from home, consumers and businesses have scaled back their purchases due to rising inflation and uncertainty in the economy.
For AMD and Intel, the slowdown, however, has taken a different course. While Intel acknowledged that it had "stumbled" in its efforts to compete with its longtime rival, AMD outperformed Wall Street sales expectations last month, forcing significant employee pay cuts at Intel.
There were no comments from AMD as well as Arm on the analyst report.
However, the decline in PC sales has also had an impact on Apple Inc.'s Mac computer lineup, which is the main market for Arm-based PC chips.
According to Mercury, Arm PC chips, which are currently holding a 13.3% market share for PC chips, up from a 10.3% share a year ago, are followed by Apple's own internal chips and Qualcomm Inc.'s most recent PC chips for Windows machines.
Ahead of an anticipated initial public offering later this year, Arm, which is owned by Japan's Softbank Group Corp (9984.T), has made expansion into new markets like PCs a key component of its sales growth strategy. Arm licenses its technology to firms like Apple and Qualcomm so that they can use it to create PC chips.
(Source:www.economictimes.com)
