Windows 8, media tablets stunt PC microprocessor demand in 2012

Combined with macroeconomic uncertainty, disappointing demand for Windows 8 devices and media tablets replacing PC cut revenue for PC microprocessors last year, says IDC.
Written by Liau Yun Qing, Contributor

A combination of macroeconomic uncertainty, slower-than-expected adoption of Windows 8 and the trend of media tablets replacing low-end PCs have caused revenue for microprocessors designed for mobile PCs, desktop PCs, and PC servers to shrink last year.

In a statement Wednesday, Shane Rau, vice president for PC and server semiconductor and enabling technologies research at IDC, said revenue for PC microprocessors dropped 2.4 percent in 2012. Economic and technological inhibitors which caused the drop in revenue in last year will likely continue into the first half of the new year, he said.

Commenting on 2012, Rau said: "Macroeconomic uncertainty forced OEM and IT customers to reduce orders and focus on execution, and reduce expectations after the launch of Microsoft's Windows 8 operating system in late October. Delays in PC purchases caused by Windows 8 and the encroachment of media tablets on low-end PCs have further cut into PC microprocessor demand growth."

However, revenue for PC microprocessors is expected to bounce back in 2013. IDC said revenue is expected to grow at 1.6 percent to reach US$40.7 billion.

IDC said worldwide PC microprocessor market revenue will grow at a compound annual growth rate (CAGR) of 3.4 percent from 2011 to 2016 during which unit shipments will grow at a CAGR of 3.2 percent.

Shipment for PC microprocessors is expect to grow at a rate of 3.2 percent to nearly 384 million units this year, the research firm said. 

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