* AMD chips to be in three times more laptop models
* Will feature better battery life
By Ian Sherr
SAN FRANCISCO, May 6 Advanced Micro Devices Inc
AMD.N may make some of its largest inroads into the
fast-growing laptop computer market thanks to a new generation
of power-efficient chips to be unveiled next week.
People familiar with the matter who work for AMD said the
company's latest microprocessors are expected to be included in
109 mainstream laptop models in the coming months, the
company's best showing during the crucial back-to-school sales
season. Last year, AMD's chips were available in 40 laptop
"This is the first time we've seen this much attention to
our notebooks," the source said, referencing the company's
And while shifts in market share are yet to be seen,
"typically more design wins dictates more sales," the source
said, adding the company's offerings are growing steadily
across the major PC manufacturers.[ID:nN04129467]
The perennial second-fiddle to market giant Intel Corp
(INTC.O) has struggled to gain market share within laptop PCs,
which have outpaced the growth of desktop PCs in recent years.
AMD's stock has underperformed Intel since the beginning of
the year, losing 14.57 percent of its value, where Intel has
gained 5.44 percent.
However, AMD's stock more than doubled off its 52-week low
of $3.22 to close Thursday's session at $8.27 on the New York
GROWTH AND RECOGNITION
Early signs are that the new range of chips to be unveiled
next week are getting positive responses from top PC makers due
to AMD's attempts to simplify its numerous offerings under its
new "Vision" brand, as well as improved battery life and
performance across the line, according to one of the sources.
In the first quarter of 2010, AMD represented 12.1 percent
of worldwide mobile chip sales, according to IDC. Intel's
market share was 87.8 percent.
While AMD has been slowly gaining market share over the
past year for both desktops and notebooks, its strength slipped
in the lucrative server market, ending 2009 with 10.1 percent
share compared to 13.4 percent in 2008.
Now, AMD says it's focusing on the consumer segment, which
is expected to fuel PC growth.
Latest figures from industry watcher iSuppli peg notebook
PC shipments growing 25.5 percent in 2010, to 209.5 million
units from last year's 166.9 million.
The sources also told Reuters that all of the
microprocessors in the forthcoming laptops will be matched with
AMD's chipsets -- collections of chips that connect the
microprocessing brain to other parts of the computer.
That means AMD can collect more revenue for each laptop
sold than it can when its microprocessors are paired with
chipsets from other companies like Nvidia Corp (NVDA.O).
The PC makers expected to feature AMD's new chips as early
as June include Hewlett-Packard Co (HPQ.N), Lenovo (0992.HK),
Acer Inc (2353.TW), and Dell Inc DELL.O, the sources said.
(Reporting by Ian Sherr; editing by Carol Bishopric)