In 1Q07, the market ratio of Intel and AMD based MBs stood at roughly 78.6% and 21.4%. In contrast to the previous quarter, AMD's market share declined slightly, due to Intel's more complete product line, market penetration of lower priced products and Dell's worse-than-expected shipment results.
Following the launch of its dual-core processors in 2H06, Intel has started to substantially extend its quad-core processor lineup. The scheduled release of its new Bearlake chipset in 2Q07 has been designed to support multi-core architectures. Its current 965PM and 965G chipsets are already compatible with the quad-core processor.
In 1H06, Intel began using the 65nm process in producing its chips. Products employing the 45nm process are set to be shipped in 2H07. 15 different models of its Penryn processors are planned for launch, covering the DT, NB and sever segments. Intel's rapid achievements and comprehensive product line in 2007 has helped it gain a significant edge over rival AMD.
Intel's strong comeback has prompted AMD to accelerate its deployment of more advanced transistor technology. During the CeBIT show in Mar07, it showcased the wafer of its latest quad-core Barcelona Opteron server fabricated under the 65nm process. It is scheduled to mass produce in 2H07, and extend to DT applications in 3Q07.
Despite the attempts by AMD in closing its gap with Intel, it still trails behind. In 1Q07, it unexpectedly cut its CPU prices to secure its market share. Such price slashing measures are not usually seen during the first quarter. In mid 1Q07, it adjusted the price of its AMD Athlon 64 DT processor and mainstream dual core products; which included 17 different models. Price declines in the high-end dual core 5600+ and 5400+ processors saw a price drop reaching as high as 35-45%.
Although the world's two most important CPU manufacturers have introduced numerous multi-core processors to the market, and adopted more advanced process technology, the high price tag has been a huge obstacle. In addition, the current mainstream CPUs are already sufficient enough to most users. On a different note, not many system programs have been modified in accommodating the newer CPU architectures. Therefore, single core CPUs remain as the most sought after product. This includes Intel's Pentium D and low-end Celeron D and AMD's Sempron.
Moreover, to smoothly run the stunning new 3D graphics in Microsoft's Vista OS, a more powerful CPU is naturally required. However, according to actual benchmark tests, the most important component upgrade is instead the memory module. This undoubtedly will hinder the CPU market growth. For the time being, consumers are expected to back away from the more expensive multi-core CPUs in favor of the lower-priced models, as manufacturers continue to introduce additional price cuts.
