AMD is experiencing a decline in processor market share

A new report by research firm Mercury Research shows the changes in the processor market during the last quarter of 2020 and shows a decline in AMD’s market share, for the first time in 3 years. While the company has enjoyed steady growth in recent years from about 10% during 2018 to 22.4% During the third quarter of 2020, during the last quarter, its market share decreased to 21.7%, while the x86 processor market grew overall by 20.1% during the quarter.

The launch of the Zen core and the Ryzen, Threadripper and EPYC processors based on it marked the beginning of one of the biggest revolutions in the processor market in recent years, a change that eventually led to a doubling of the company’s market share. However, according to the new report, AMD appears to have moved for the first time in a long time to a negative trend over the last quarter, a relatively small negative change of 0.7% probably caused by shortages and delays in supply, which even made it consider expanding its production capacity by using In Samsung’s foundry in addition to that of TSMC.

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A closer look at the data shows that although AMD’s market share fell 0.7% from the third to fourth quarters of 2020, it is still a 6.2% increase over the previous year. The division into categories is a decrease of 0.8% in the desktop processor market and 1.2% in the mobile processor market, compared to the server processor market, which manages to maintain growth and show an improvement of 0.5% compared to the previous quarter.

AMD Processor Market Share (tomshardware source)

While this is a relatively low decline in its market share, it is still the first trend change in three years for AMD, a change mainly due to the unavailability of processors. At the same time, Intel manages to slightly increase its market share, mainly due to doubling the company’s production capacity in the 14nm and 10nm range, as we are expected to see further changes during 2021 with the announcement of Rocket Lake, Comet Lake Refresh, Tiger Lake H processors And the new Xeon processors, in addition to the company’s plans to outsource to TSMC later.

According to the current report, Intel continues to dominate the bulk of the computing market in all categories, with its market share in the laptops category as of the end of 2020 at 81%, an increase of 1.2% compared to third quarter data, the market share in the desktop category stands at 80.7% (0.8% increase compared to Q3) and the server market share stands at 92.9%, a decrease of 0.5% compared to third quarter data.