Intel Has Just 2% Market Share

Contrary to popular belief, Intel makes just two percent of the world's microprocessor chips.

Surprised? You wouldn't be if you worked with us.

You read it every day in the press: Intel has 90-something percent share of the microprocessor market.

Nothing could be further from the truth. Although it's true that Intel supplies 90-odd percent of the microprocessor chips used in PCs, the larger reality is that PCs are only a small percentage of global consumption of microprocessor chips. Even if Intel controlled 100% of the PC market (and there were no AMD or other competitors), it would still command only 2-3 percent fo the total microprocessor market.

Intel is a very big fish in a small pond, you might say.

So what about the other 98% of microprcoesor chips? Where do they go, who buys them, and who supplies them? The overwhelming majority of microprocessor and micrcontroller chips manufactured every year go into something other than a PC. This is known as the "embedded" market, mean these chips are embedded into products other that aren't PCs. That's a lot of chips to ignore. Intel has relatively little presence in the embedded market; it is one among many players. Instead, dozens of other semiconductor companies occupy that market space.

Remember, we're talking about unit volume, not revenue. Intel's chips are extraordinarily profitable, so the company's small 2% unit volume equates to a large slice of the revenue pie. Embedded microprocessor chips are comparatively inexpensive, so they generate less revenue individually but more in total. How much more? Give us a call and let's discuss it.