"Intel's processor shipments alone grew nearly 4.3 percent quarter-to-quarter and 20.8 percent year-on-year, while AMD's processor shipments were about flat," said Shane Rau, director of IDC's PC chip research in a press statement.

The second quarter is usually a low point for the year, Rau added. Nevertheless, CPU shipments were up 16.1 percent from the same quarter a year ago, showing the strength of the demand in the current period.

Looking forward, IDC predicts PC processor sales for all 2008 will grow by just 7.5 percent to about $32.8 billion. Rau cited concerns about the broader economy despite Intel's aggressive approach to pricing and new product introductions.

Intel is on the cusp of introducing its first 45nm processors, the desktop Core i7 line debuting at the Intel Developer Forum later in August.

Intel captured 79.7 percent of the PC processor market on a unit basis in the quarter, up 0.9 percent. Archrival Advanced Micro Devices had 19.7 percent, a loss of 1.2 percent. AMD has been losing share to Intel steadily since the third calendar quarter of 2007 when it had 23.5 percent of the market, according to IDC.

Intel recorded gains in the notebook segment that now represents one of the largest and fastest growing PC sectors. Intel had an 86.5 percent share of the notebook CPU market in the quarter, up 1.3 percent. For its part AMD logged a 12.6 percent share, down 1.9 percent, and Taiwan's VIA Technologies had 0.9 percent, up 0.7 percent.

AMD had modest gains in the smaller but profitable workstation market rising 0.8 percent to a 13.8 percent share compared to Intel down the same amount to 86.2 percent. Shares stayed at 73.3 percent for Intel and 26.4 percent for AMD in the desktop space.

By: DocMemory
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