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Worldwide PC Microprocessor Market Remained Weak in 1Q09, IDC Reveals

Discussion in 'News' started by btarunr, May 12, 2009.

  1. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    Worldwide PC microprocessor shipments in the first calendar quarter of 2009 (1Q09) fell significantly for the second quarter in a row, according to new data from IDC. While the decline was slightly more than typically occurs between fourth quarter and first quarter, IDC believes that the market's decline is slowing.

    In 1Q09, worldwide PC processor unit shipments declined –10.9% from 4Q08 to 1Q09, as compared to –17.0% from 3Q08 to 4Q08. Unit shipments declined –13.0% from 1Q08 to 1Q09.

    Market revenue declined –11% from 4Q09 to 1Q09, as compared to –18.0% from 3Q08 to 4Q08. Revenue declined –25.1% from 1Q08 to 1Q09.

    Intel's shipments of Atom processors for mini-notebook PCs (which Intel calls "Netbooks") declined –33% in 1Q09 compared to 4Q08, indicating the mini-notebook OEMs held significant inventory of Atom processors coming into the new year. IDC estimates that the inexpensive Atom processors for mini-notebook PC represented 21% of Intel's mobile PC processor shipments in 1Q09 and 6.5% of Intel's mobile PC processor revenues in 1Q09.

    "The PC processor market continued to reflect significant decline in end demand for most of 1Q09," said Shane Rau, director of Semiconductors: Personal Computing research at IDC. "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."

    1Q09 Vendor Highlights

    In 1Q09, Intel earned 77.3% unit market share, a loss of -4.7%, while AMD earned 22.3%, a gain of 4.6%, and VIA Technologies earned 0.4%.

    In 1Q09 by form factor, Intel earned 84.3% share in the mobile PC processor segment, a loss of –4.7%, AMD finished with 15.0%, a gain of 4.7%, and VIA earned 0.7%. In the PC server/workstation processor segment, Intel finished with 89.3% market share, a gain of 1.2% and AMD earned 10.7%, a loss of –1.2%. In the desktop PC processor segment, Intel earned 70.0%, a loss of –3.9%, and AMD earned 29.8%, a gain of 3.8%.

    Market Outlook

    The PC processor market is still in weak condition. While OEM demand picked up notably towards the end of the quarter and going into April, IDC is wary that the demand was due to OEMs replenishing their inventories rather than reflecting a return of solid end demand and return to market normalcy. IDC continues to expect modest sequential processor unit shipment decline in 2Q09.

    IDC's forthcoming report, Worldwide PC Processor 1Q09 Vendor Shares, will provide worldwide market share results for PC processor vendors on an overall unit and revenue basis, as well as by form factor (desktop, mobile, and PC server).

    Source: IDC
     
  2. surfsk8snow.jah

    surfsk8snow.jah

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    I say 3 factors are contributing to this:
    1) Economy (people are holding their wallets a little tighter)
    2) Seasonal - as mentioned in the article this is standard in this quarter.
    3) People don't see as much benefit in upgrading their proc's anymore. Pentium 4's are still pretty well standard in the average layman's PC - Pentium D perhaps. Core 2 took a pretty firm hold very quickly on the new market, but those things are so fast, and XP works near seamlessly with them, most people/families/businesses don't need to upgrade beyond an E6300. Yes, all of us enthusiasts NEED to :D but more out of hobby and addiction to cutting edge than operational necessity. i7 is WOW amazing tech, but unnecessary to standard user. Even to gamers yet. Until we reach a point where this changes (and it will, just as it has), when Pentium D's & then Core2 get honestly severely bogged down under standard computer operations, I don't foresee this factor changing.
     

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