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February 26, 1999 8:25 PM PST

AMD outsells Intel for first time

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Advanced Micro Devices' K6 family of desktop chips outsold all Intel-based desktop PCs in the U.S. retail market for the first time, a new report shows.

The AMD K6 line accounted for 43.9 percent of all desktop PC processor sales in January, according to PC Data's January Retail Hardware Report. AMD benefited from a strong demand for PCs selling for less than $1,000, which made up more than 65 percent of the market in January, the first time this price segment has exceeded 60 percent of overall unit sales.

For years, Intel has dominated the worldwide market for PC chips. But as this report shows, AMD has made signficant gains on its archrival by seizing the market for home computers priced less than $1,000 or, in some cases, even $500 or $400.

"This is a major milestone for AMD. This is the first time that a processor family, other than one manufactured by Intel, led the U.S. retail market," said Stephen Baker, senior hardware analyst at PC Data.

Overall, U.S. retail sales in January rose 21.7 percent over last year bolstered by year-over-year growth in the sub-$1,000 segment of more than 180 percent.

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