AMD Eclipses Intel in the U.S. Retail PC Market

SAN DIEGO, CA. – November 8, 2005 – AMD struck new ground last month when it overtook market leader Intel as the leading supplier of processors for the US retail personal computer market. In October 2005, 49.8% of the personal computers (desktops and notebooks combined) sold in the US retail market utilized AMD processors, thus allowing AMD to narrowly surpass Intel, which accounted for 48.5% of the market.*

AMD actually led Intel in the desktop category by a slight margin in the month of September as well; the company sustained growth in the category in October and, subsequently, extended its lead across the entire US retail PC category during the month.

October serves as the transition between the back-to-school and winter holiday shopping seasons. The period between Black Friday and Christmas will ultimately define the success of the fourth quarter. However, these October sales results, as well as the well-documented rumor that Wal-Mart will offer a $398 AMD notebook and a $398 AMD desktop on Black Friday, indicate that AMD is in a stronger position to compete with Intel than it has been in past holiday seasons.

Looking forward, one can expect that AMD will attempt to replicate its October success throughout the all-important holiday season. According to Matt Sargent, Director of Research at Current Analysis, “AMD did the unthinkable by surpassing Intel in October. Continuing to hold this lead in the holiday season would be a colossal win for the company.”

The following numbers represent AMD’s standing in other US retail PC spaces:

– AMD’s share of unit sales in the US retail desktop space increased from 52.0% in September to 67.7% in October.

– AMD’s share of unit sales in the US retail notebook space increased from 26.2% in September to 31.5% in October.

– Despite the company’s superior standing in the arena, AMD’s October revenue share of retail PC sales (40.1%) trails that of Intel (57.6%) because the average selling price of Intel PCs is significantly larger than AMD PCs.

Contact:
Chalise Zolezzi
Director of Public Relations
858-729-5287
czolezzi@currentanalysis.com

About Current Analysis:

Current Analysis is the industry benchmark for excellence in navigating today’s markets, serving as a critical, third-party expert in market and product analysis by offering competitive response solutions in the telecommunications, information technology and consumer electronics industries.

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* Based on data derived from the Current Analysis Retail Panel, a panel comprised of the nation’s leading consumer electronics retailers

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