AMD loses 1/3 of its marketshare in Q1

From TG Daily:
"Prices for AMD’s desktop processors fell by an average of about 50%, according to a recent TG Daily analysis . iSuppli told us today that these price cuts were not enough to maintain market shares for AMD. Based on preliminary findings, iSuppli vice president Dale Ford estimates that AMD’s overall market share in the microprocessor industry may have declined 4.7 percentage points from 15.7% in Q4 2006 to 11.0% in Q1 2007. The analyst believes that Intel was able to regain market shares in the same time frame: “On a preliminary basis, I would estimate that Intel increased its market share in microprocessors from 75.7% in Q4 to 79.5% in Q1,” Ford told TG Daily. He described the exchange of market shares as “a big swing” and said that the market share shift was bigger than the firm initially had estimated. "

I've known very well that it is going to be bad for AMD. But losing 4% market share in one quarter is just something that surprises me. I am not so sure now that AMD's cost cutting plans is enough to get them over this problem. That's because AMD's capacity today is designed to meet at least 25% of the market. And under-utilized fab as AMD tries and clears inventory is money down the drain. We should see AMD scale back to pre-2003 levels just to return to profitability. Maybe even less than that just because ATI is adding to the loses.

UPDATE: April 25
Mercury confirms Intel gain a massive 6% market share overall to increase from 75% to 81% leaving AMD a measly 18%. VIA which now doesn't appear to look that bad whilst sharing the gutter with AMD, took 1% share.
AMD blames the channel for the huge sales decline while the channel rejoices in its revenge.