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AMD sells more, makes less

CNET has an article talking about the shifting market share between Intel and AMD and the toll that getting new business can take on the bottom line.

AMD gained share in the x86 chip market with

25.3 percent of chip shipments in the fourth quarter of 2006, an increase from 21.4 percent from the year-earlier quarter and the highest number in its history. Intel, based nearby in Santa Clara, Calif., dropped from 76.0 percent to 74.4 percent over the same period, McCarron said.

Despite improving over all, Intel ate into AMD’s share of the server market thanks in part to its quad core Xeons. The same kind of erosion is starting to happen in HPC as well.

AMD’s gains didn’t mean a financial windfall, though. The company’s average server chip prices dropped, contributing to AMD’s financially difficult quarter.

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