CPU Shipments Increase in Q2, Demand for PCs Didn't

Intel logoThe computer market has been chugging along this year despite the recession with the most robust sales in the industry being on the netbook front. That is good news for Intel, who provides the majority of netbook processors on the market.

Research firm IDC issued a report this week that gives some shipment numbers for the CPU market for Q2 2009. According to the report, demand for new computers from consumers and businesses has not increased despite shipments for the quarter improving. IDC also reports that it does not expect back to school PC sales to be as robust as some expect.

IDC analyst Shane Rau said, "IDC believes that ODMs and OEMs have balanced out their inventories and so we can't rely on inventory replenishment to drive market improvements. Instead, we can only rely on what actual end demand really is, and that means we have to be cautious not to be over-exuberant [and believe] that, say, the traditional back-to-school PC buying season will materialize into a bullish second half. It won't."

Intel again owned the overall x86 CPU market with 79% of the entire market for x86 CPUs. AMD held a distant second place with 21% of the market and VIA has a very distant third place with a slim 1% of the x86 market. Overall processor shipments grew 10% for the quarter, but that was not on increased demand for computers.

The increase in shipments was due to OEMs replenishing inventories and was helped by a refreshed line of netbooks that hit market during the quarter. Shipments decreased 15% for the quarter when compared to Q2 2008.

Intel shipped 12% more CPUs in Q2 than it did in Q1 while AMD shipped 1.8% more CPUs over the quarter. IDC figures that about one in four of all CPUs that Intel shipped were the Atom variety and the chips accounted for 8% of all Intel mobile processor revenue for the quarter. Intel had predicted in Q1 that the bottom of the computer market had been reached, but demand for PCs has yet to increase.

Source: DailyTech

Tags: AMD, CPUs, Intel, VIA

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