Intel admits to falling behind AMD

Written by Tim Smalley

April 28, 2006 | 11:43

Tags: #behind #conroe #cuts #margins #market #merom #profit #share #woodcrest

Companies: #amd #intel #otellini

At Intel's analyst meeting held on Thursday, CEO Paul Otellini finally admitted that the chip giant has fallen behind AMD, acknowledging the loss of market share, technological leadership and also its profit margins.

Otellini also announced plans for an aggressive strategy to help the company bounce back from its recent period off the boil. The strategy includes a restructuring plan and the company intends to cut its spending by $1 billion by the end of the year.

He also unveiled the schedule for the company's latest generation of CPUs. Woodcrest - the company's upcoming server chip - will ship in June, with Conroe coming in July and the Merom mobile chip rounding off the product stack in August. According to Otellini, these products will provide Intel with a "sustainable industry lead in both performance and performance per watt."

Recently, Intel's market share slipped below 80% and Otellini emphasised the need for improvements in the company's market share. He claimed that Intel's poor performance in market share over the past year was due to a shortage of chipsets.

The upcoming 'Core' architecture, will enable Intel to regain market share according to Otellini. However, if Intel still suffers from a shortage of chipsets after launching its new CPUs, the company will find it hard to regain the market share it has lost. There are also many conspiracy theories going around about the actual performance of Conroe. I guess we will have to wait until independent reviews of the new chips to come out before we find out the true performance of Conroe.

You can read the full scoop here.

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