AMD rises as a winner as it occupies nearly a third of the processor market, and Arm’s climb slows down, according to an analyst report.

Nearly a third of the central processor units’ market has been captured by Advanced Micro Devices Inc (AMD.O) while the rise of British chip technology firm Arm Ltd in the PC market slowed in the fourth quarter of 2022, an analyst reported.

Intel Corp, which remains the largest player in the market for x86 processors, lost a share to AMD. x86 processors work with popular operating systems like Windows. Intel has 68.7% market share while AMD occupies 31.3% of the market in the fourth quarter of 2022. AMD’s share came rose from the previous year’s 28.5%. These market dynamics are according to Mercury Research.

The results came amid what the report of the President Dean of Mercury Research called the worst downturn in the PC chip market since the 1980s and possibly the worst in the history of the industry. After the sales of PCs and laptops rose rapidly for work-from-home necessities during the pandemic, consumers and businesses have slowed their purchases amid recently rising inflation and economic uncertainty.

But the slowdown in sales has worked out differently for AMD and Intel. Last month, AMD beat Wall Street sales expectations while Intel finally accepted that it has “stumbled” in the competition that it has with its long-time rival. Intel’s losses led to unfortunate pay cuts for employees.

While Arm was not available for a comment on the situation, AMD refused to comment on the analyst report.

Apple Inc’s Mac computer line-up also couldn’t escape the sales slump. Apple is the leading source of sales for Arm-based PC chips.

Arm PC chips are led by Apple’s in-house chips and also joined by Qualcomm Inc’s recent PC chips for Windows machines are down from 14.6% last quarter to  13.3% of the market share for the PC chips. However, it is still up from last year’s share which was 10.3%.

Japan’s Softbank Group Corp owns Arm, and it licenses its technology to Apple and Qualcomm for making PC chips. It has made an expansion into new markets like PCs a major part of its sales growth strategy of a public offering expected later this year.

source : reuters.com

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