 "Analysts say the gloomy gross margin forecast is one of the clearest signs yet that Advanced Micro Devices Inc. (AMD.N: Quote, Profile , Research) is gradually prying loose Intel's grip on the microprocessor industry. Intel, which makes processors for three-quarters of the world's personal computers, said on Tuesday gross margins would be 50 percent in 2007, below the 51.5 percent last year, when its chips suffered a beating at the hands of AMD offerings. Intel has weathered margins below 50 percent before, such as in 2001 and 2002, when the bursting of the tech bubble caught most technology companies -- big or small, hardware or software -- in its blast radius.
Analysts say Intel's current troubles, though, have a different cause, one that is traceable directly to big market share gains by AMD."
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