AMD’s Server Share Surpassed 10% Mark

Wednesday 27 July 2005 @ 12:16 am

Advanced Micro Devices (AMD) claimed 11.2% of the market for x86 server chips in the second quarter of 2005. This is believed to be a major milestone for the company to capture 50% share of the processor market by 2015.

Mercury Research figures released by AMD show that the second largest chipmaker enjoyed its market share rise from 7.4% in the first quarter to 11.2% in the second quarter, a 51% jump.

In the second quarter, AMD saw its revenue from sales of all its microprocessors increase 38% over the same period last year, with revenue hitting the USD$767 million mark. The company attributed the increase to record server and mobile processor sales, a 6% higher overall average selling price, and record sales to its largest customers, including Hewlett-Packard and Sun.

Revenue generated by AMD’s server processor, Opteron, rose 89% from the first quarter to the second, according to AMD. The benefit from this milestone is two hold as server chips sell for more than desktop ones, besides, the business market remains larger than the consumer market. An increase in sales of Opteron servers also gives AMD an opportunity to sell chips to manufacturers of business desktops and servers too.

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