Global PC Chip Shipments Up, Revenues Down In 2Q

Price competition in middle and low-end desktop and mobile PC chips drove overall market revenues down 4.5% quarter to quarter to $7.7 billion, IDC said.



Worldwide shipments of PC processors rose in the second quarter, driven primarily by Intel's ability to defy the usual trend of the quarter being the slowest of the year, a market research firm said Friday. Nevertheless overall market revenues were down as competition drove down prices.

Shipments of PC microprocessors worldwide increased 3.1% quarter-to-quarter and 16.1% from the same period a year ago, IDC said. Much of the increase was due to Intel, which increased shipments nearly 4.3% quarter-to-quarter and 20.8% year-to-year. Shipments for processors made by rival Advanced Micro Devices were about flat.

"While sequential market growth is unusual in the second quarter of the calendar year, it's clear that, in 2Q08, Intel's processor shipments drove the growth," IDC researcher Shane Rau said in a statement.

The Intel-driven increase in shipments, however, did not boost market revenues. Price competition in middle and low-end desktop and mobile PC chips drove overall market revenues down 4.5% quarter to quarter to $7.7 billion, IDC said.

In terms of shipments, Intel had 79.7% of the overall market, a gain of 0.9%; and AMD had 19.7%, a loss of 1.2%.

IDC predicts overall market revenue will grow 7.5% this year to more than $32.8 billion. The researcher said it remains "conservative" in its outlook for the second half of the year, due to potential weakness in the global economy.

In terms of types of processors, Intel registered its biggest gains in mobile PC processor shipments, increasing its market share 1.3% to 86.5%. AMD saw its share fall 1.9% to 12.6%, while Taiwanese company VIA Technologies increased its share by 0.7% for an overall market share of nearly 1%.

Intel's share of the PC server/workstation market fell 0.8% to 86.2%, and AMD's share rose 0.8% to 13.8%. In the desktop segment, share changes were "negligible," IDC said. Intel had 73.3% and AMD 26.4%.

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