AMD claims it has 15 per cent X86 market share

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Forerunner
HECTOR RUIZ from AMD kicked off the firm's quarterly conference call by saying its microprocessor business showed 80 per cent year on year, quarter on quarter, growth.

AMd continued its strong trajectory in the enterprise, said Ruiz. Ebay is using loads of Sun Opteron systems using Solaris OS, he said. China is boosting AMD sales, said Ruiz.

Fab 36 is ramping well, claimed Ruiz. The fourth quarter was outstanding, he boasted.

Robert Rivet claimed AMD grew in the quarter. It had reduced debt by $639 million, successfully floated Spansion, and reported a good financial quarter. The Spansion float needed additional details including non-GAAP results.

Gross margin wasn't far short of 58 per cent. AMD said sales of all of its stuff grew over the quarter. Server and desktop growth was driven by customers adopting dual core AMD chips. North America, China and Europe showed strong growth. Rivet said there were lean inventories - or shortages as we call them here at the INQ.

AMD forward statements don't depend on Spansion. The next quarter will be flat, but is still a 70 per cent increase comparably, said Rivet. 2005 was a very good year, he said. AMD is very well positioned for 2006.

Platform adoption has never been stronger, added CEO Hector Ruiz, who claimed AMD's marketing is now recognised as world class. World class marketing is an odd term. A PR spinner has probably written this bit. AMD has "seized the mantle" of technology leadership from its competition.

Yields at Fab 36 will produce production by the end of this quarter, said Ruiz. AMD is poised and ready to gain more share. It will grow at least twice the rate of the industry, Ruiz claimed.

Ruiz said the server business was AMD's fastest growing part, mobile CPUs were doing OK, and then desktop chips too. Ruiz said: "I can't give more granularity than that."

The famous financial analysts, emerging from under their desks, asked Ruiz some questions at the end of the conference call. Ruiz said the market is very price competitive. But cost didn't drive AMD, claimed Ruiz. At the value end, there is very little room for pricing movement.
 
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