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Intel: Forerunner of PC processor market

Posted: 14 Oct 2002 ?? ?Print Version ?Bookmark and Share

Keywords:Intel? desktop PC processor? Pentium 4? AMD Athlon XP? chipsets?

As Intel continues to raise its clock speeds and further reduce prices, the company is seen to maintain its lead in the desktop PC processor market, reports In-Stat/MDR. Intel is forecasted to hold an 81 percent share in the PC processor market at the end of 2002.

According to In-Stat, Intel's Pentium 4 made AMD's Athlon XP trail behind in terms of clock speed during the first half of this year, and is expected to continue doing so as long as Intel is able to convince end users they need a processor that runs at multiple-GHz speeds. However, AMD's Hammer processor could prove to be a tough competitor in 2003.

"Significant clock increases and the introduction of Hyper-Threading into mainstream desktop PCs will allow Intel to keep faith with Moore's Law, which implies processor performance should double every 18 to 24 months," said Kevin Krewell, a GM with In-Stat. "This race for speed also helps Intel compete with AMD, as Athlon XP has not been able to keep pace and will be pushed into competition with Celeron, much as the K6-2 was. Once the Hammer family begins to ship in earnest in 1H 2003, AMD should be able to respond with its own differentiated processor. Until then, Intel is in the driver's seat," he added.

In-Stat stated that the PC market growth will slow down by only one percent in 2002, to further rebound to 13 percent in 2003. The rebound is expected to be driven by new product launches in 2003, such as Intel's Banias and Prescott processors and AMD's Hammer family of processors, and by pent-up demand.

Further, In-Stat reports that Intel's chipsets will continue to focus on DDR SDRAM support and integrated graphics in 2002 and 1H of 2003 and is said to add DDR-II memory support (with integrated graphics) to Prescott chip sets by the remaining half of 2003.

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