IDC: Processor shipments up 10 percent but market still weak

Market researcher firm IC Insights reports processor sales were up 10 percent in the second quarter of this year. However, the market watcher states this doesn't signal a recovery because the PC market is still in a weak condition. Compared to the same period last year, processor revenue was down 15.3 percent while unit shipments were down just 7 percent. Intel managed to increase its marketshare by 1.6 percent to 78.9 percent for the quarter, while AMD declined by the same amount to 20.6 percent and VIA remained unchanged at 0.5 percent. Intel's gains are mainly attributed to the Atom processor, as sales of this low-cost chip were up by 34 percent.

"The PC processor market didn't recover in 2Q09," said Shane Rau, director of IDC's PC semiconductor research, speaking in a prepared statement. "Instead, the market balanced out due to Intel driving Atom processors into ODMs who manufacture the systems, particularly in China and Taiwan."

The market watcher said the PC market is still in a weak condition and expressed skepticism about any near-term increases in end user demand.

"We have to be cautious not to be over-exuberant that, say, the traditional back-to-school PC buying season will materialize into a bullish second half--it won't," said Rau.

Source: EE Times