AMD has seen its market share of the x86 chip market rise at the expense Intel largely thanks to the product ramps of the forthcoming Sony PS4 and the Xbox One. Highlighting that its strategy of shifting into non-PC x86 is reaping dividends, AMDs market share in Q3 rose from 16.1 percent to 19.3 percent. By comparison, Intel's x86 market share slipped from 83.3 percent in the same quarter last year to 80.2 percent, while the overall x86 market also declined.
The overall market for x86 chips has, however, continued to decline as users embrace smartphone and tablets largely running chips using ARM RISC designs. Sales of x86 chips dropped a further 2 percent in Q3 with few signs that Microsoft's Windows 8 and recent Windows 8.1 update is helping to reverse the trend towards mobile computing. Although Windows 8 has been developed for use on tablets, tablet buyers have opted for devices running Apple's iOS or Google's Android that continue to favor ARM-based chips.
Although Intel continues to refine its x86-based Atom designs for smartphones and tablets, it has been developing an new ultra-low power x86 chip called Quark, which it is positioning to be ready for the next growth area known as the "Internet of things" aimed at emerging markets including smartwatches and other devices. AMD is expected to continue to search for other markets where it can expand its reach where more traditional x86 implementations could reap further dividends. [via PC World