Monday, February 6, 2023
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Intel plays it dirty to cause AMD to loose Desktop PC market share

A major Wall Street firm has downgraded AMD as a result of Intel’s destructive actions against its smaller rival in the desktop PC space in order to slow its market share expansion. According to Bernstein Research’s Stacy Rasgon, these actions may come back to bite Intel in the long run, but for the time being, Intel can use its vast manufacturing capacity and ability to offer competitive pricing to outsell its competitor and prevent its entry into the lucrative high-end notebook space.

Rasgon stated that Bernstein has recently become wary of potential PC dynamics as a result of the market outlook and Intel’s semi-destructive behaviour.

In Q3 2022, Intel’s Client Computing Group generated approximately 53% of its revenue, which is why the company must protect this business unit at all costs. Nonetheless, while Intel’s most recent generations of client CPUs are highly competitive, maintaining client PC earnings is becoming more difficult.

Intel
credit: tomshardware

While AMD’s focus on higher-end CPUs for desktops and notebooks limits its market share growth, it steals sales and profits from Intel’s CCG.

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Apple, which uses its own processors in the majority of its computers, is one of Intel’s most important customers. Apple’s PC market share is increasing, and it controlled 13.5% of PC shipments in Q3 2022, implying that Intel has lost around 13% of the PC market since late 2020, when Apple began using its own system-on-chips instead of Intel’s processors.

Rasgon stated that the PC market is weak, CPU sales are down, and competition between Intel and AMD is intensifying. Intel is using its vast production capacity, steep discounts, and close ties with PC makers to ensure that AMD does not ship all of the units it can.

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.

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