Global PC Microprocessor Shipments, Revenue Improving
Researcher IDCs Q2 2010 data shows a sequential 3.6 percent bump in unit shipments and a 6.2 percent jump in revenues compared to the prior quarter. Strong first half performance may yield to late summer weakness.
Global shipments of microprocessors in the second quarter of 2010 rose by 3.6 percent and revenues perked up by 6.2 percent when compared to the prior three month period, exceeding the segments average sequential change from the first to the second calendar quarter, according to researcher International Data Corp.s latest study.
IDC is holding to its forecast of 19.8 percent growth in worldwide unit shipments of microprocessors for 2010, despite its data showing weakening demand during the second quarter and an expected tepid showing in August.
"Major OEMs cut PC build orders with their contract manufacturers who, in turn, have cut orders for commodity components," said Shane Rau, IDC director of semiconductors personal computing research.
"While the PC processor vendors re-iterated their solid outlook during their most recent earnings calls, the softness we've seen ultimately makes us concerned for end demand's pull on processors, he said.
Still, IDC pointed to a better than normal performance for PC processors during the second quarter, when revenues typically decline 2.8 percent and unit shipments increase by only 1.6 percent from the first quarter.
"Such a sequential increase in PC processor shipments alone would have been enough to conclude that the first half was strong for the market," said Rau.
System makers bought more and higher-priced PC processors in 2Q10 than in 1Q10, he said. Digging a little deeper into the numbers shows that they bought more mobile processors and more server processors, while desktop processors remained flat."
IDC said that on a sequential basis for the quarter mobile PC processor unit shipments rose 6.5 percent, PC server processors climbed 6.1 percent but desktop PC processors declined by a scant .1 percent.
Intel Corp. is the overall global PC microprocessor leader as of Q2 2010 with 80.7 percent of the market. Advanced Micro Devices Inc. follows at 19 percent with VIA Technologies Inc. in third place with .3 percent share.
Intels piece of the segment slipped .3 percent while AMD gained .2 percent during the period.
For mobile PC processors, Intel commands 86.1 percent, followed by AMD at 13.7 percent and VIA at .2 percent. Intels command of the PC server processor market is even stronger at 93.5 percent with AMD at 6.5 percent.
In the desktop PC processor market, Intel owns 72.2 percent with AMD at 27.3 percent and VIA at .5 percent.