Advanced Micro Devices managed to once again increase microprocessor market share in the third quarter, based on figures released by IDC market tracking agency. The achievement comes as the market of central processing units increased substantially, thus, both AMD and Intel Corp. succeeded in selling more microprocessors than previously.

Worldwide PC microprocessor shipments grew 14.3% sequentially to reach record levels in the third calendar quarter of 2007. Consequently, worldwide PC microprocessor revenue rose 14.8% to $7.95 billion in Q3 2007.

On an overall unit basis, AMD earned 23.5% market share, a gain of 0.4%. Intel earned 76.3%, a loss of 0.4%. By form factor, AMD’s share in the mobile PC processor segment rose 1.9% to 18.9%, and its share in the PC server processor segment grew 0.7% to 13.9%. Market shares changes in the desktop PC processor segment were negligible. Given that IDC uses different market share determination methodology, its figures cannot be compared with historical figures by Mercury Research.

“The third quarter of 2007 was the second quarter in a row to exceed expectations in terms of PC processor unit shipments. We attribute the market’s performance to Intel’s and AMD’s aggressive pricing for their new platforms, which stimulated early demand from PC OEMs building PCs for the back-to-school buying season. However, we also believe that real end demand is there. OEMs are passing processor savings onto consumers, who, instead of buying cheaper systems, are purchasing more robust configurations, partially to support Windows Vista,” said Shane Rau, director of IDC’s semiconductors: personal computing program.

Shipments of processors designed for mobile PCs continued to lead the market, growing 26.6% in Q3 2007, reflecting considerable worldwide demand for mobile PCs in the second half of the year. Shipments of processors for desktop PCs and for PC servers also fared rather well, increasing by 7.7% and 4.6%, respectively.

IDC expects strong market demand for PC processors to continue in the fourth quarter.

“Both Intel and AMD noted in their Q3 2007 earnings calls that demand remains strong. In fact, both companies noted how the broad-based demand is spread across processor segments and regions of the world,” said Richard Murphy, IDC inquiry analyst.