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Desktop CPU sales see biggest decline in 30 years as AMD gains market share

The picture as a whole: A fresh research report implies that desktop CPUs haven’t escaped broader economic trends like inflation and falling product demand. The tech industry’s Q2 numbers are down around, yet AMD is somehow coming off a fantastic quarter, making gains on chief rival Intel.

Mercury Research reports (via Tom’s Hardware) that last quarter’s desktop CPU shipments saw their biggest year-on-year decline because the group started keeping records in 1994. One researcher suspects this is actually the largest decline since 1984. The report suggests reduced OEM inventory and falling demand will be the primary driving factors.

Because the pandemic economy is apparently ending, that declining demand has manifested in bad reports in a variety of areas. Intel lost half of a billion dollars amid a 22 percent year-over-year revenue decline. Nvidia’s gaming revenue dropped by one-third. Phone shipments fell for the fourth consecutive quarter, Chromebook shipments decreased 50 percent year-over-year, and growth for tablets flattened. Among the only companies that did well was AMD.

Earlier this month, AMD reported a 70 percent year-over-year upsurge in revenue that briefly made it more valuable than Intel. Mercury’s report can be upbeat regarding AMD, showing their market share growing against Intel’s in multiple areas.

AMD’s slice of the desktop computer pie grew 2.3 percent from the prior quarter and 3.5 percent year-over-year. Mercury thinks AMD were able to dodge the forces that hurt Intel here.

In notebook and mobile CPU shipments, falling demand resulted in year-over-year declines for AMD and Intel, but impacted AMD less. Thus, AMD experienced a 2.3 percent quarterly gain and a 4.8 percent annual gain in market share against Intel.

Team Red made similar gains in server unit market share 2.3 percent quarter-over-quarter and 4.4 percent year-over-year representing AMD’s biggest quarterly gain in servers since Mercury’s records for the reason that segment began in 2017.

Similar trends appeared in last month’s Steam hardware survey, where AMD’s CPU share rose 2.22 percent on the previous month.

Both Intel and AMD intend to launch new desktop CPUs this season. AMD’s Ryzen 7000 series will undoubtedly be available the following month, while Intel’s 13th generation processors could launch in October. AMD also offers new Epyc server chips planned for later this season, while Intel delayed its Sapphire Rapids server CPUs, likely into 2023.

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