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PC processor market decline slows down

Posted: 18 May 2009 ?? ?Print Version ?Bookmark and Share

Keywords:PC processor? market processor? decline market?

Worldwide PC microprocessor shipments fell for the second consecutive quarter in the first quarter, down 10.9 percent from Q4 08, according to a report released by market research firm IDC.

IDC described the sequential decline as slightly more than that which typically occurs between Q4 and Q1. IDC analysts believe that the market's decline is slowing.

PC processor unit shipments declined 17 percent between the third and fourth quarters of last year, according to IDC.

Market revenue declined 11 percent in the first quarter from Q4 08 after falling by 18 percent from the Q3 08 to Q4 08, IDC said. Q1 PC processor revenue was down 25.1 percent compared with Q1 08, IDC said.

In a statement, Shane Rau, a research director at IDC, said the PC processor market reflected a significant decline in demand for most of Q1. "However, some inventory replenishment by OEMs at the end of the quarter helped to slow the decline and bring the quarter in at a level only slightly worse than typical seasonal decline," Rau said.

Intel Corp.'s shipments of Atom processors for netbooks were down 33 percent in Q1 compared with Q4 08, IDC said. The firm attributed this decline to significant inventories of Atom processors held by OEMs coming into the year. IDC estimates that the Atom processors represented 21 percent of Intel's mobile PC processor shipments and 6.5 percent of the No. 1 chip vendor's mobile PC processor revenues in Q1.

But Intel's unit market share of PC processors declined to 77.3 percent in Q1, down 4.7 percent from the previous quarter, IDC said. Advanced Micro Devices Inc. grew its unit market share by 4.6 percent to achieve 22.3 of the market in Q1, IDC said.

Intel's unit share of the mobile PC processor segment slipped to 84.3 percent in Q1, down 4.7 percent from the previous quarter, according to IDC. AMD gained 4.7 percent to hold 15 percent of the market, the firm said.

In the PC server/workstation processor segment, Intel gained 1.2 percent to hold 89.3 percent of the unit share in the first quarter, while AMD held 10.7 percent, IDC said.

Intel also lost unit market share to AMD in the desktop PC segment in Q1, IDC said. Intel had Q2 unit share of 70 percent, while AMD's grew to 29.8 percent, the firm said.

Weak market
IDC said the PC processor market is still in weak condition. While OEM demand picked up towards the end of the quarter and going into April, IDC is afraid the demand was due to OEMs replenishing their inventories rather than reflecting a return of solid end demand and return to market normalcy. IDC said it continues to expect modest sequential processor unit shipment decline in Q2 09.

IDC is planning a forthcoming report called Worldwide PC Processor 1Q 09 Vendor Shares, which the firm said would provide worldwide market share results for PC processor vendors on an overall unit and revenue basis, as well as by form factor.

- Dylan McGrath
EE Times

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