It seems to be a shrinking market and too expensive to upgrade.
AMD’s share of the desktop processor market is shrinking, according to the analytics company Mercury Research. By the end of Q3 2022, the company controlled 13.9% of the desktop CPU market, its worst result since 2018.
In the laptop chip market, AMD’s share is slightly above 15.7%. But if the desktop CPU market share fell by 6.6 ppp compared to the second quarter, the laptop market share fell by 9.1 ppp.
Analysts believe that AMD’s decline in market share is due to two key reasons. First, the market itself is shrinking; second, the transition to the new AM5 desktop platform has been quite expensive: the new Ryzen chips are not in high demand.
However, AMD still manages to increase its share in the server processor market. The company has been building it continuously for 14 quarters now: Epyc processors successfully compete with Intel Xeon.
AMD’s share of the server chip market is now 17.5%, up 7.3 percentage points year-over-year. Overall, AMD controls 28.5% of the CPU market largely due to chips for consoles and other embedded systems.