Modest growth in Q3 PC processor sales and revenue

Worldwide PC microprocessor unit shipments and revenue in the third quarter of 2010 (3Q10) increased 2.1 percent and 2.5 percent, respectively, over the previous quarter, according to analyst firm IDC.

However, these figures actually represented a less-than-average performance for a third calendar quarter since the average sequential change in unit shipments and revenue is an increase of 10.6 percent and 9 percent, respectively, the IDC stated in a report released Friday.

IDC also added that between 3Q10 and 3Q09, processor shipments increased 8.6 percent and revenue rose 24.1 percent

Shane Rau, director of semiconductors, personal computing research, IDC, explained in the report that the mediocre growth was due to poor market demand for processors between July and August, adding that original equipment manufacturers (OEMs) were becoming "very reactive to any hint of slackening and demand".

In addition, when OEMs cut their PC build orders, they also caused their contract manufacturers to downsize their orders for commodity components, Rau elaborated. "The whole supply chain is skittish" as a result, he remarked.

Comparing market performance in terms of PC form factors, IDC found that mobile PC processor unit shipments rose 1.6 percent in 3Q10 from 2Q10, PC server processes were up 4.1 percent, and desktop PC processors increased 2.4 percent.

A year-on-year comparison showed that mobile PC processor unit shipments increased 13.3 percent, PC server processors rose 24.4 percent, and desktop PC processors were up 1.7 percent.

Despite the mediocre 3Q10 performance, Rau expressed optimism that the fourth quarter will be a "decent" one for processor sales, highlighting the forthcoming launches of Intel's Sandy Bridge and AMD's Fusion architecture.

Rau said that for next year, even though consumer demand will remain stalled in developed regions, IT executives will still prioritize upgrading their PCs over the next 12 months. This, he felt, will result in a double-digit growth in PC systems and PC processors for 2011.

Intel remains tops
IDC's report also showed that Intel kept its dominance, taking up to 80.4 percent of the overall worldwide PC microprocessor market despite a loss of 0.3 percent.

Rivals AMD moved up 0.2 percent to grab 19.2 percent of the overall market share, while VIA Technologies gained 0.1 to earn 0.4 percent.

In the mobile PC processor segment, Intel lost 0.2 percent to hold 85.9 percent of the market share, AMD stayed the same with 13.7 percent, while VIA earned 0.4 percent, a gain of 0.2 percent.

In the PC server/workstation processor segment, Intel took 93.7 percent market share, a gain of 0.2 percent, whereas AMD had 6.3 percent, a drop of 0.2 percent.

In the desktop PC processor segment, Intel earned 71.8 percent, a loss of 0.4 percent; AMD had 27.8 percent, a gain of 0.5 percent; while VIA took 0.4 percent.