Intel and Amd Computers Have Become an

¶ … Intel and AMD Computers have become an integral part of life for nearly every individual. In today's society, computers are used for everything from creating documents, spreadsheets, and web pages to booking flights and hotels, and from downloading music and burning CDs to creating PowerPoint presentations. What this means is that numerous companies have entered the marketplace, competing with one another and developing new innovations. This paper compares Intel and AMD, two companies that provide the same service to customers and compete with one another.

INTEL Intel is the world's leading maker of computer processors, holding an 80.6% share of the PC market. If Intel processor sales for Microsoft's X-Box are included in the tally, Intel's market share was 81.2%. The increased Intel market share apparently came from a strong push in low-price Celeron processors, which ended up making Intel overall processor ASPs for the quarter flat. Intel's revenues since June 30, 2001-March 30, 2002 have been as follows: (1) $6,334,000,000 (period ending June 30, 2001); (2) $6,545,000,000 (period ending September 29, 2001); (3) $6,983,000,000 (period ending December 29, 2001); and (4) $6,781,000,000 (period ending March 30, 2002).

Intel's trademark and groundbreaking invention was the Pentium chip; the chip which is known by the now ubiquitous "Intel Inside" sticker on nearly all personal computers. In addition to the Pentiums I, II, III, IV, and MMX, Intel manufactures the Celeron and Celeron Tualatin chips, lower cost versions of the Pentium IV chip. III. AMD AMD is the world's second leading manufacturer of computer processors, holding an 18.5% share. If Intel processor sales for Microsoft's X-Box are included in the tally, AMD's market share was 18%.

Even though AMD lost some market share, it essentially increased its ASPs sharply by selling a higher mix of higher price Athlon processors, even though their market share declined. Intel's revenues since June 30, 2001-March 30, 2002 have been as follows: (1) $985,264,000 (period ending June 30, 2001); (2) $765,870,000 (period ending September 29, 2001); (3) $951,873,000 (period ending December 29, 2001); and (4) $902,073,000 (period ending March 30, 2002). AMD's trademark and groundbreaking invention was its Duron chip. In addition to the Duron chip, AMD manufactures the Athlon, Athlon Thunderbird, and Athlon XP chips.

While there used to be a difference in processing speed between Intel's chips and AMD's chips, this difference has been sharply reduced over the past few years as each company has seen.