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The Battle For Market Share Between Intel And Amd

The battle for market share between Intel and AMD

Intel has used innovation and new technology to regain their market share from AMD.

Introduction
I believe it is Intel’s use of innovation and incorporation of new technologies into their products that has allowed Intel to regain their market share from AMD. I will focus mainly on the market share and product developments to prove my hypothesis correct.

Intel is the world leader in chipset design and AMD (Advanced Micro Systems) is the only competitor, they are both US-based companies. Several years ago, ’03 - ‘05, AMD was generally accepted as the better choice and far outstripped Intel in sales figures. Intel poured huge resources into R&D and has since regained their market majority.



Theory
In my theory I have explained some key business terms.

R&D – Research and Development. The first stage in the product life cycle, it is the high-tech, research stage behind new products. Because of the nature of the industry Intel and AMD are in, it is understandable that they have very high ‘R&D’ investments. It is necessary to spend these large amounts because they are at the leading edge of their technology in a fast-moving market. It is notable that Intel tend to move too fast for their own good, for example, consumers were very happy with CoreDuo but Intel released a new version before the first one had really begun to sell, essentially they paid the R&D costs of two products but only sold one.

Market Share – The percentage of the market influenced by a certain product or brand. In this particular market the winning product tends to be whichever Dell and PC World endorse. I think that Intel have regained their market share by because of their competitive advantage, I have expanded on this below.

Competitive advantage – Any factor or selling point that gives a company something over competitors. In the context of computer hardware industry, Innovation is by far the most important, closely...