AMD Reports Q2 2019 Market Share as Intel Sticks to Its Guns on Pricing


This site may earn affiliate commissions from the links on this page. Terms of use.

Over the past month, AMD let fly with two-thirds of its 7nm product lineup. Both the desktop and server spaces have now been refreshed with 7nm CPUs. Intel’s response? Meh.

Let’s do the market share data first. Heading into Q2, AMD has a series of pushes and drags on its market performance. Positive factors include Intel’s ongoing CPU shortage (expected to peak in Q2 2019) and the strong overall market response to Ryzen in desktop, laptop, and server. Negative factors include ongoing trade disputes with China and the possibility of a 12/14nm sales slowdown as the 7nm launch approached.

Data on AMD’s market share in desktop, server, and laptops was provided by Dean McCarron of Mercury Research via THG. We’ve covered Mercury Research’s figures before — sticking with one firm allows us to create an apples-to-apples comparison for how AMD’s market share is evolving over time. There’s good news on multiple fronts for the smaller CPU manufacturer:

AMD-Market-Share-Q2-2019

Data by Dean McCarron, Mercury Research. Chart by ExtremeTech

AMD’s desktop market share was flat in Q2, at 17.1 percent of the channel. This isn’t necessarily surprising. AMD has been cutting prices on its older 2000 series parts to stimulate uptake, but there was an unmistakable surge of interest in third-generation RyzenSEEAMAZON_ET_135 See Amazon ET commerce after those chips launched. We don’t know how strong the surge will be, but European retailer Mindfactory released July sales data showing that AMD shipments skyrocketed after July 7. The DIY retail market for CPUs is typically estimated to be between 10-20 percent of the space. If AMD continues to enjoy high retail demand, we will see that reflected in the Q3 2019 figures for overall desktop market share. As always, when considering data from a single company or source, keep in mind that it reflects information at that specific retailer, not the wider market.

Notebook share is the major winner, both year-on-year and quarter-on-quarter. AMD has picked up two percentage points of share since the beginning of the year and grown its market share by 1.6x relative to Q2 2018. The challenge for the company will be keeping that share as Intel’s CPU shortage lessens. Some analysts have predicted that AMD would lose its gains in this area as Intel shipped more cores; we’ll see what Q3 shows us in that regard.

The server market continues to tick upwards, with AMD claiming 3.4 percent of the space now, up from 1.4 percent the previous year. AMD didn’t hit its previous goal of taking 5 percent of the entire server market by Q4 2018 (the company told us earlier this year that it believed it had secured at least 5 percent of the 2S / dual-socket server space). We’re not concerned by the relatively slow server ramp — the Epyc CPUs AMD just launched are the most impressive performance leap the company has ever delivered in that market.

Overall, AMD’s market share figures show a company executing well and gaining share. AMD has predicted that its Compute and Graphics revenue will increase by 1.2x over 2018 when the impact of slowing semi-custom design sales is taken into effect (Xbox One and PS4 sales are falling as the new console cycle builds momentum).

As for Intel, the larger CPU vendor is sticking to its guns. Intel’s August CPU Price List gives the expected list prices in 1K units for its complete product lineup. There are no changes whatsoever. These official price guides don’t necessarily reflect the price that chips are selling for in the retail channel, and they certainly don’t reflect the price that OEMs pay in bulk, but they represent Intel’s officially communicated pricing.

IntelPricesAugust

The full document is available for your perusal, but it looks like the above straight down the line. Intel may adjust its pricing quietly behind the scenes, or it may make larger, formal cuts at a later date, but the firm is sticking to its guns for now. From Intel’s perspective, this makes good sense. AMD may have just launched an impressive suite of products, but Intel presumably wants to see how the market responds to them before it makes a determination about what to do.

Intel’s response to AMD since 2017 has been to avoid direct price cuts and instead introduce different products at adjusted price points. That might not work in server, given that Cascade Lake has already launched and there aren’t going to be opportunities to respond to AMD with a new family deployment in the near term. Intel might cut prices later this year, or opt to wait to change its product alignments until Cooper Lake or Ice Lake are ready to ship. For now, AMD continues to gain market share with expected improvements in the back half of 2019 related to the 7nm Ryzen refresh.

Now Read:




10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something

Sony Will Likely Raise PlayStation Prices If Chinese Tariffs Increase


This site may earn affiliate commissions from the links on this page. Terms of use.

The US and China have been engaged in a trade war for months now, but the two nations have thus far managed to avoid a new round of mutual escalation. While the United States has threatened to raise tariffs on a range of Chinese goods from 10 percent to 25 percent, the Trump Administration hasn’t actually done it yet. According to Sony’s Senior General Manager of Finance Department and Corporate Planning, Naomi Matsuoka, the company may have no choice but to raise console prices in the United States if the tariffs go through.

In the quote below, the reference to “Level four” tariffs refers to the fact that this would be the fourth set of tariffs imposed by the United States in the ongoing trade dispute. These are typically referred to as “tranches” (a tranche is defined as “a portion of something, especially money”). Tranche 4 tariffs are expected to impact $250B worth of Chinese goods if they go into effect. Tranches 1-3 previously covered goods collectively worth $250B, so the 4th tranche represents a substantial expansion in terms of the number of goods to be tariffed, as well as a significant increase in the tariff amount.

Sony-Earnings

When asked about the potential impact of tariffs on Sony’s PS4SEEAMAZON_ET_135 See Amazon ET commerce business, Matsuoka responded with the following:

Well supposing hypothetically, the Level four tariffs are actually decided, so this is based on the assumption that it will take place up to the — it’d be up to the timing of that as well as the specific conditions attached. But supposing — and we are not currently assuming that, but if this is actually invoked, what will be the impact? What we are foreseeing is that in Game & Network Services, hardware business will be affected… higher tariffs on these products will actually impact distribution and employment and consumers in the United States will be a negative for the U.S. economy as such.

So our subsidiary are working with the industry associations and government associations, approaching the government where we have sent the opinion leaders to the government. And as of now, we are of course contemplating these actions based on the potential risk for Level four and for all the products affected, for instance the changing of the production sites or passing through of the prices to the market or changing the continuous sales structure.

So, we are considering risk ahead of the current actions if this happens. And once the decision is made to introduce Level four, all the contributing actions will be put to force to mitigate the negative impact.

Nintendo, Microsoft, and Sony have all previously asked the Trump Administration not to raise tariffs on consoles, noting that the machines are largely built in China and that moving their supply lines would be difficult to impossible. That may be true for some companies more than others, however, as Nintendo has already said it’s moving production of the Switch Mini to Southeast Asia to avoid potential tariff entanglements. It’s also possible that it’s easier with some product lines as opposed to others — Sony and Microsoft may have long-term production contracts on the PS4 and Xbox One that are difficult to break, or the two companies may face short-term problems with supply chains and the associated costs of setting up shop in a new location.

As for the actual trade negotiations themselves, there has been a little movement on that front. China said three days ago that it would begin larger purchases of some farm products and the US and China trade delegations met on Wednesday, July 30 for several hours. The meetings did not resolve any outstanding issues, however, and the ongoing trade war continues with “No deal in sight” according to the New York Times. The White House called the talks “constructive,” while the Chinese state news media characterized the talks as “frank, efficient, and constructive.”

This was the first formal meeting of the two sides since talks fell apart three months ago. President Trump has tweeted that there may be little chance of a trade deal before the 2020 election is complete. If the Tranche 4 tariffs actually go into effect, we may see the impact on consoles from multiple manufacturers and different product generations, depending on whether Sony, Microsoft, and Nintendo can secure a waiver. The trade talks will resume again in September.

Now Read:




10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something