U.S. Businesses More Willing to Buy AMD- and Cyrix-Based PCs, Ziff-Davis Survey Shows; Intel's Strong Brand Loyalty Questioned in July Poll of 2,624 Sites

Business Wire, August 5, 1998

LA JOLLA, Calif.--(BUSINESS WIRE)--Aug. 5, 1998--Thirty-four percent of 2,624 U.S. businesses surveyed say they are considering purchasing PCs with AMD or Cyrix processors instead of Intel-based processors, according to a new study by Ziff-Davis (NYSE:ZD).

Intel has traditionally controlled more than 90% of the consumer and business PC processor markets, according to ZD Market Intelligence, the Ziff-Davis group that conducted the July survey. When asked their interest level in purchasing non-Intel-based PCs, 27% of this group responded that they were "highly interested."

Further research by ZD Market Intelligence indicated that AMD (www.amd.com/products/cpg/cpg.html) and Cyrix (www.cyrix.com) have strong retail market share; combined, they represent 60% of the market for desktops selling under $1,000 and 38% of total X86 desktop PCs selling in the U.S. retail channel as of June. This is up dramatically from June 1997, when only 5% of total desktop PCs selling in retail used a non-IntelCPU.

The retail findings are from ZD Market Intelligence's StoreBoard channel-tracking service, and represent sales in the primary U.S. retail PC channels. The findings on business-users' buying intentions comes from ZD Market Intelligence's syndicated workplace survey, the Computer Intelligence Technology Database, which interviews more than 200,000 U.S. workplace establishments annually.

"Obviously, we are at a crossroads. AMD and Cyrix have been very successful in the consumer market and they now want to enter the highly profitable business market," said Matt Sargent, Industry Analyst for ZD Market Intelligence. "Traditional thought had it that the business market would remain loyal to Intel. However, our research indicates this is not the case. Even this early in the cycle, when less than 5% of business sales are non-Intel-based, we show more than 30% of the businesses considering switching."

ZD Market Intelligence has compiled more detailed data on channel sales of PCs by processor vendor, and the types of businesses indicating interest in non-Intel PCs. Additionally, Ziff-Davis group MicroDesign Research has prepared a white paper that examines the performance and price differences of AMD, Cyrix and Intel processors. Access to this information can be obtained on the Web at www.zdinfobeads.com. InfoBeads is the ZD Market Intelligence site devoted to online access of market metrics for the computer and communication industries. InfoBeads provides information such as buying patterns, channel and market trends, forecasts and market share.

ZD Market Intelligence, formerly Computer Intelligence, is a leading provider of sales and marketing solutions to a wide spectrum of computer and telecommunications companies. More than 10,000 users access ZD Market Intelligence data on a regular basis.

ZD Market Intelligence's extensive research capabilities provide a variety of products and services that help companies sell and market more effectively. All are based on proprietary-information databases of technology usage and buying activity in large- to medium-size businesses and homes.

Headquartered in La Jolla, ZD Market Intelligence has U.S. offices in Cambridge, Mass.; Norwalk, Conn.; Sunnyvale, Calif.; and Dallas, Texas. European headquarters are in Paris, with sales offices in the United Kingdom, Germany and Spain, and sales agents in Belgium and Switzerland. Samples of ZD Market Intelligence's extensive market data and research results, timely commentary from industry authorities and previews of upcoming technology events are available on the company's Web site, www.zdintelligence.com (formerly www.ci.zd.com).

MicroDesign Resources (www.mdronline.com) is an information services company focused on enabling technology for personal computers and the high-performance microprocessor industry. Based in Sebastopol, Calif., the group's work is aimed at engineers and others who need to understand and select new technologies.

Ziff-Davis is a leading integrated media and marketing company focused on computing and Internet-related technology, with principal platforms in print publishing, trade shows and conferences, online content, market research and education. The company provides global technology companies with marketing strategies for reaching key decision-makers.

Visit www.zdintelligence.com or www.zdinfobeads.com/default.asp?module=insider&topic= Commercial_PC&story=Intel_0805

    CONTACT:  ZD Market Intelligence
               Glenn Grant, 800/880-0973
               glenn_grant@zd.com
                    or
               Rogers Communications
               Judith Vanderkay, 781/224-1100
               jvanderkay@rogerscom.com