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Frustration Over Lack Of Market Gains Led To AMD-Intel Suit

AMD has only around 10% of the x86 processor market, a figure that hasn't grown in three years, even though the company has introduced innovative products such as 64-bit capabilities

Advanced Micro Devices Inc. filed an antitrust suit against Intel on Monday because of a growing frustration at its inability to make major market-share gains over the past three years, despite what it sees as bringing demonstratively more-innovative products to market.

"We deserve to have a significantly larger share of the market than we currently have," Hector Ruiz, chairman, president, and chief executive of AMD, said during a teleconference Tuesday. "By any measure we should be participating at a significantly higher number, and the only thing that is keeping us from achieving those numbers are the illegal, monopolistic practices of our competitor."

AMD has about 10% of the overall x86 microprocessor market revenue, the same share it has had for the past three years, Ruiz said. During that time, however, AMD led the way in introducing 64-bit capabilities and dual-core processors to the market, he said.

Nathan Brookwood, an analyst with Insight 64, says he understands AMD's disappointment. But he notes that historically, having the best technology hasn't always ensured a company's success.

"Let's face it, in many segments right now AMD's products are winning most of the benchmarks and have many desirable characteristics," Brookwood says. "If you can't sell your product when you have the strongest ones in the market, then if you have responsible management, you've got to address the issues that are keeping you from succeeding."

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