Intel and Advanced Micro Devices (AMD) are in a constant “race” to see who will dominate the market. But let’s look at the dynamics and advantages of each company.
On the one hand , Intel, the world's largest chipmaker by revenue , appears to have a "good card " against AMD, in the form of billions of dollars in cash, which it can use to finance a potential "price war" with rival AMD. Intel appears to have a multi-phase plan that will develop into its main " weapon " that will ensure its dominance in the market. Of course, most of this plan is not yet known. However, what is already clear is that the first phase of the plan concerns price cuts for Original Equipment Manufacturer ( OEM ) partners , which may lower the chain resulting in more affordable computers and laptops, a scenario that is desirable. In addition, Intel has a huge but dwindling amount of cash . It is estimated to have over $12 billion in revenue as of mid-2019. Price cuts are not an unheard of phenomenon for Intel. It is worth noting that Intel is still at the top of the market. For example, it holds an 80% market share of desktops and laptops and a 90% market share of servers respectively.
On the other hand, AMD, a company that manufactures integrated circuits, is Intel's main competitor and not without reason, as AMD always manages to maneuver against Intel, even at the last minute. AMD has only $ 1.2 billion in cash . Undoubtedly, AMD is growing rapidly, especially in the laptop and server markets . In fact, it is expected that by the end of 2020 it will hold a share of around 10% of the server market.
Given these figures, if a "price war" with AMD is in Intel's immediate plans, then the latter should be worried and start thinking about the possibility of further dividing market share.
