AMD has more than doubled its market share in certain geographic and market segments. The year has been defined in the technology world, so far, by a slowing economy and a sagging PC market. On top of that, rival Intel has quickly reduced the prices of its new Pentium 4, setting off a price war between the two companies.
AMD's largest gains in the third quarter came in consumer PC markets outside of North America. The chipmaker's share of the Japanese consumer PC market jumped to 54 percent from 24 percent in 2000. AMD increased its market share in Western Europe in the quarter to 49 percent from 25 percent in 2000. The chipmaker's gains in the overall U.S. desktop market were smaller, although the company said it moved up to 27 percent from 17 percent in the third quarter of 2000. AMD's strengths in the United States came in small business PCs, where it claimed 40 percent of the market, and in the government sector, where it had 33 percent of the market.
AMD and Intel simultaneously raised their fourth-quarter earnings forecasts last week, citing better-than-expected demand. AMD said demand for Athlon XP chips, two of which are sold out for the quarter, exceeded expectations. AMD expects to ship more than the 7.8 million processors than it shipped in the third quarter.