News AMD's Ryzen Surpasses Intel at Puget Systems as Sales Boom

[Admin]

OEM reveals that more than half of the systems it sells are AMD-powered.

AMD's Ryzen Surpasses Intel at Puget Systems as Sales Boom : Read more

 

[escksu]

I have to say this is not representative of the entire market, just in case someone thought AMD has overtaken Intel in sales/market share.

The bulk of Intel sales isn't from retail processor sales, its from OEM, esp. from the big 3 (Dell, HP and Lenovo).

 

[Sleepy_Hollowed]

Not surprising, considering that anyone looking for power savings and high processing power, AMD is the bigger bang for the buck at recommended prices.
The only people that I know eyeing Intel CPUs for high powered systems are those looking for compatibility in virtualization, because Intel is ahead on that respect due to their long monopoly.
It's the same case with the non-thread ripper Ryzen processors as well, just the ability to run ECC RAM for workloads that require accuracy is a amazing for the price AMD allows you to have it at.

 

[Jim90]

I have to say this is not representative of the entire market, just in case someone thought AMD has overtaken Intel in sales/market share.

The bulk of Intel sales isn't from retail processor sales, its from OEM, esp. from the big 3 (Dell, HP and Lenovo).

Indeed, the stench of sweeteners is still strong with Intel.

 

[didgetmaster]

I just wish I could buy a 5950x processor without having to pay a 50% premium on ebay. It has now been 5 months since AMD released its 5000 series processors and they still have a major supply problem. Everyone is out of stock. My 10 year old system is getting long in the tooth and rather than having to build a new system every 3 years, I splurge for the top of the line system at the time and it takes more time before it feels 'old'.

 

[tennis2]

Not entirely surprising considering AMDs Zen 3 stuff is finally beating Intel on performance.

However, this data ignores:

• ***number of AMD vs Intel systems that Puget is offering for each timeframe. After all, they only resumed AMD sales in 2017, but we're not being told what the ramp-up looked like.
• relative pricing of "equivalent" AMD vs Intel systems
• "sweet spot" pricing of AMD vs Intel systems.
  • If there are more AMD than Intel system options in the "sweet spots", that's going to skew data.
• Puget (IMO) is more of a premium retailer and generally geared heavily toward the productivity sector. Hence AMDs general core advantage plays favorably in Puget's customer base.

 

[Rookie_MIB]

I must say, who would have thought that just 5 years ago AMD was barely a blip on the radar when it came to high performance processor sales - to this...

 

[tennis2]

I must say, who would have thought that just 5 years ago AMD was barely a blip on the radar when it came to high performance processor sales - to this...

Yeah, they made a gamble with Bulldozer and it definitely didn't pay off. However, with product development cycles, you can't just overhaul an entire architecture in a year or two. Look at how much trouble Intel is having just "revamping" their pre-planned architectures in lieu of their process node woes.

 

[spongiemaster]

Indeed, the stench of sweeteners is still strong with Intel.

Or it's just a simple math problem. Why would Intel need to incentivize sales now when both they and AMD are maxed out on capacity? AMD is selling everything they can produce. Even if everyone prefers AMD over Intel, Intel would still have 80% of the market because AMD can't supply beyond about 20%.

AMD should be dominating sales at a reseller like Puget Systems. AMD's Threadripper is so far superior to Intel's offering, that Intel gave up on the HEDT market and isn't even trying to compete right now.

 

[NightHawkRMX]

Puget systems are often focused on workstations, and similar rigs where AMD has been winning for the last 2 generations, so it would make sense that they sell more AMD than Intel.

However, Intel will still outsell AMD in your typical (imo junk) prebuilt computers from Dell, HP, Lenovo, etc. Intel's production capacity is higher for one. Secondly, typical buyers of these systems aren't constantly watching tech reviews and will just purchase what is familiar, which is Intel.

I have reason to believe intel is doing something similar to what they did to gain prebuilt sales back in the 2000s too. This time they are most likely disguising the oem bribes better as to not get sued for this behavior. again...

 

[watzupken]

Actually no matter what Intel does, the damage is already done. We can see from a few sources that they are indeed losing market share all around, and even if they try to use "under table" methods to retain sale, it will just eat into their profit margins. With big organizations starting to move towards their own ARM based processors and some to AMD to diversify their dependency on Intel chips, its a matter of time we see some impact to their bottomline if this continues.

 

[spongiemaster]

With big organizations starting to move towards their own ARM based processors and some to AMD to diversify their dependency on Intel chips, its a matter of time we see some impact to their bottomline if this continues.

Not likely to happen any time soon. Intel is in a better position to succeed financially in the current market conditions than AMD is. The only way AMD can make more money right now is to increase prices, which they have been doing across all their product stacks, but they can only go so far with that strategy until they are viewed as Intel Jr. There is no way for them to increase production unless TSMC is able to and decides to sell more capacity to AMD which won't be happening in the near term. Intel who is in control of most of their production can continually improve production capacity by improving the efficiency of their fabs as they have over the last few years, and even better they can upgrade old fabs or bring a new one online like they did late last year. Not only that, but they can still add additional capacity by outsourcing to the same fabs AMD is trying to use. All the wafer starts Intel purchased for their GPU's from TSMC is capacity AMD now has no ability to purchase themselves. As long as there are market shortages, Intel doesn't have to have the best product, just something competitive, and they will continue to produce record quarters.

 

[cryoburner]

Or it's just a simple math problem. Why would Intel need to incentivize sales now when both they and AMD are maxed out on capacity? AMD is selling everything they can produce. Even if everyone prefers AMD over Intel, Intel would still have 80% of the market because AMD can't supply beyond about 20%.

While Intel clearly has significantly more production capacity that should keep them in the lead in terms of total sales numbers, I'm not so sure they are maxed out on capacity. Their processors have been seeing a lot of price-reductions at retail lately, and despite those lower prices, availability seems to remain fine, implying they are not selling everything they can produce in the way AMD has been doing with the 5000-series.

There is no way for them to increase production unless TSMC is able to and decides to sell more capacity to AMD which won't be happening in the near term.

Yep, near-term they are kind of limited in what they can do. But long-term they could be more of a concern to Intel. With TSMC seeing very heavy demand, it's likely that they will expand production capacity for leading edge nodes in the coming years, since it's pretty clear that their clients are not getting as much capacity as they would be willing to buy from them. And in the nearer-term, while AMD currently needs to split their limited 7nm production between their CPUs, GPUs and console APUs, we will likely see those divided across a couple nodes next year as 5nm products start rolling out, potentially easing demand on any given node. The console chips will likely stick with the 7nm node for at least a few years, and those are undoubtedly putting a strain on AMD's manufacturing capacity at this time.

So, I could see Intel wanting to work out deals that make it harder for AMD to potentially take more business away from them in the future. And even now, you can be pretty sure that the added competition has been forcing them to sell processors for lower prices than they would ideally like.

 

[TerryLaze]

While Intel clearly has significantly more production capacity that should keep them in the lead in terms of total sales numbers, I'm not so sure they are maxed out on capacity. Their processors have been seeing a lot of price-reductions at retail lately, and despite those lower prices, availability seems to remain fine, implying they are not selling everything they can produce in the way AMD has been doing with the 5000-series.

Intel isn't selling CPUs one at a time, the CPUs that retailers offer are already sold units that belong to the retailers now and the retailers decide if they made enough money from the older models to run special sales to clear out before the new models arrives.

 

[cryoburner]

Intel isn't selling CPUs one at a time, the CPUs that retailers offer are already sold units that belong to the retailers now and the retailers decide if they made enough money from the older models to run special sales to clear out before the new models arrives.

That still implies the retailers have lots of surplus laying around. And if they have processors that they don't expect to get rid of easily without slashing prices, then they aren't buying more of those models from Intel. That is, assuming Intel hasn't reduced the prices that they are selling to them to the retailers at due to surplus on their end, which could also be the case. Those discounted 10-series processors may also be competing with the upcoming 11-series ones, potentially reducing their sales numbers to some extent. Again, they might be selling alright, but there are no shortages or anything that would indicate Intel is "maxed out on capacity", and the atypical price reductions would seem to imply the opposite, if anything.

 

[TerryLaze]

and the atypical price reductions would seem to imply the opposite, if anything.

How are they atypical?! This stuff always happens when something new is about to come out. Even Ryzen 5000 series is more available right now and at msrp.
Each company has their own logistics and some sell their rest stock for cheaper to make space for more profitable new stock and others keep selling their stock at msrp for years to come, it's each companies decision which one they will do.