IDC: Intel Sandy Bridge woes not helps AMD

Committed by a competitor is generally good for business, but recent problems with its chip Intel Sandy Bridge does not enable Advanced Micro Devices to steal market share from its biggest rival, according to IDC.

The delay of an upcoming AMD chip, code-named "Llano," which has been designed to compete with Sandy Bridge, stopped the AMD opportunities to gain market share from Intel, said Shane Rau, a research manager at IDC. The chip Llano, which were due at the beginning of this year, was delayed due to manufacturing defects and will launch no earlier than the middle of this year.

Intel announced the new Core i5 and i7 processors based on the Sandy Bridge architecture for high-end PCs in early January. But shipments hit a snag later that month when Intel has found a design flaw in the 6 series chipset, code-named Cougar point, used in PCs with Sandy Bridge processors. Stopped shipments of chipset, which led to PC makers to delay and issue refunds. Intel has been solved the problem and has begun shipping chipset replacement on February 14.

Trying to take advantage of Intel, AMD chipset woes said 18 February that would launch a new marketing campaign, entitled "ready. Willing. And stable "to promote its CPU and graphics processor.

But such promotions will not make a difference in market share of AMD, Rau said.

AMD doesn't have any equivalent to compete with microprocessors Sandy Bridge, which could ramp up shipments complete by early April, said Rau. Laptop and desktop chips current AMD compete with older chips and Core i3 i5 i7 Intel Westmere architecture, which are still being shipped to PC manufacturers. Most laptops in the market are still based on Intel Westmere chips.

"I don't think there will be lots of opportunity for AMD steal," said Rau.

The market share lost AMD to Intel in the fourth quarter of last year, according to an IDC Study due out on Thursday. Intel had a share of 80.8% of processors shippped, compared to 80% in the fourth quarter of 2009. AMD's market share fell to 18.9% from 19.5% over the previous year. Overall microprocessor shipments in the fourth quarter remained more or less flat, 0.21% fall compared to the previous year.

Until the launch of the Llano, AMD has an opportunity with its new chip low power Fusion, shipments have been encouraging, Rau said. Chip Fusion combines a processor CPU and graphics in a single chips and are targeted at netbooks and low-end desktop.

Overall, IDC predicts that shipments of microprocessor to grow by about 4.0% this year, compared to the growth of 17.1% in 2010. Growth will be driven primarily by large and medium businesses buying mobile computers, while consumer purchases may remain weak due to economic concerns and competition of tablets.

"Media tablets like iPad are working on the edges of the space PC" and damage the shipment of devices like netbooks, Rau said.

Most tablets available today, including the Apple iPad, are equipped with ARM processors. AMD has no presence in the market for Tablet PC and boards based on Intel's chip Trail Oak ship until the end of this quarter.

ARM in time could threaten x 86 PC processors, Rau, he said. ARM into the PC market when released Windows 8, which could be a couple of years off. A pile of hardware and software, including drivers, also must be available so arm PCs are functionally equivalent to x 86 PCs, Rau said.

(IDC is owned by International Data Group, parent company of IDG News Service).