Intel Corp (INTC)

[kpf]

Until we understand completely and absolutely why AMD is INCREASING market share

Well, to begin with, while understanding completely is already close to hopeless, understanding absolutely is hopeless.

Having said this, AMDs basic recipe for market-share-gains is nothing special:
1) They grow capacity faster than the market grows
2) They price to sell what they can make
There is only one refinement of the recipe as far as i can see:
3) They run their newest node targeted at mobile
This is very ambitious´from a manufacturing stance and took them quite a while longer than intended to work - but since it does it is particularly ugly for Intel: Any attempt to defend mobile mss by lowering prices would have devastating effects on its ASP - so this looks like a sustainable trend: Currently i see nothing that would prevent AMD from reaching its 30% mss target in mobile first. Probably not next year, but in H1/09, as far als notebooks are concerned. But then, i am aware the portrayal of mobile-market will likely include form-factors occupied by Silverthorne, so the bad 3 will not necessarily show.

K.