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Worldwide PC Microprocessor Market Remains Weak

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

 

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).

 

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