Market decline is slowing

May 12, 2009 07:10 GMT  ·  By

According to a recent industry quarterly report announced by research firm IDC, the global PC microprocessor shipments for the first quarter of 2009 were down for the second quarter in a row, confirming an ongoing market decline. The recently announced data demonstrates that the world's number two in PC microprocessors, AMD, managed to gain on its main rival, Intel. In addition, the results also point to a significant decline for Intel's successful Atom processors, designed for small-sized, ultraportable computer systems, also known as netbooks.

“The PC processor market continued to reflect significant decline in end demand for most of 1Q09,” said Shane Rau, director of Semiconductors: Personal Computing research at IDC. “However, some inventory replenishment by OEMs at the end of the quarter helped to slow the decline and bring the quarter in at a level only slightly worse than typical seasonal decline.”

The worldwide PC microprocessor shipments fell 10.9 percent in Q1 2009 from the 17 percent in the fourth quarter of 2008. However, IDC reports that these numbers are slightly higher than those that typically occur between the fourth and first quarters. Intel managed to grab a 77.3 percent of the total market share, recording a loss of 4.7 percent, while its main rival, AMD, gained 4.6% for a total of 22.3%. VIA Technologies earned a market share of 0.4 percent.

In addition, IDC's report also indicates that Intel's shipments for Atom processors for netbooks fell 33% in the first quarter of 2009, pointing out that PC vendors held a significant inventory of Atom processors. However, IDC estimates that the overall market decline is slowing.

The reported figures for the first quarter of 2009 were slightly better than those for the fourth quarter of 2008, due to the increase in demand from PC suppliers, according to IDC. However, the overall market is still weak, with expectations for modest sequential processor unit shipment decline in 2Q09, IDC reports.