PC MPU sequential Q2 growth more than double average for the quarter

In Q2, Intel earned 80.7% unit market share, a loss of 0.3%; while AMD earned 19%, a gain of 0.2%; and VIA Technologies earned 0.3%.

Suzanne Deffree, Managing Editor, news -- EDN, August 19, 2010

Worldwide PC microprocessor unit shipments and revenues in Q2 increased 3.6% and 6.2%, respectively, compared to Q1, according to the latest PC processor study from International Data Corp (IDC).

The increases may seem meager, but IDC reminded the growth represent better performance than usual for Q2. IDC noted that the average sequential change in unit shipments between Q1 and Q2 is an increase of 1.6% and the average sequential change for revenues is a decrease of 2.8%.

"Such a sequential increase in PC processor shipments alone would have been enough to conclude that the first half was strong for the market," said Shane Rau director of semiconductor PC research at IDC, in a statement. "However, a modest rise in revenues, too, points directly to a rise in average selling prices. System makers bought more and higher-priced PC processors in Q2 than in Q1. Digging a little deeper into the numbers shows that they bought more mobile processors and more server processors, while desktop processors remained flat."

Broken out by market, IDC reported Q2 mobile PC processor unit shipments rose 6.5% quarter over quarter, PC server processors rose 6.1% quarter over quarter, and desktop PC processors declined 0.1% quarter over quarter.

As to vendor performance in Q2, Intel earned 80.7% unit market share, a loss of 0.3%; while AMD earned 19%, a gain of 0.2%; and VIA Technologies earned 0.3%.

By form factor, IDC reported that in Q2 Intel earned 86.1% share in the mobile PC processor segment, a loss of 1.7%. AMD had 13.7% market share, a gain of 1.6%; and VIA earned 0.2%. In the PC server/workstation processor segment, Intel claimed 93.5% market share, a gain of 3.3%, and AMD earned 6.5%, a loss of 3.3%. In the desktop PC processor segment, Intel earned 72.2%, a gain of 0.5%; AMD earned 27.3%, a loss of 0.7%; and VIA earned 0.5%, IDC said.

IDC noted market demand for processors weakened during Q2 and is expected to remain weak in August. The market research company, however, maintained its outlook for a seasonal second half and its forecast for 19.8% worldwide PC processor unit full-year growth.

"Major OEMs cut PC build orders with their contract manufacturers who, in turn, have cut orders for commodity components," said Rau. "While the PC processor vendors re-iterated their solid outlook during their most recent earnings calls, the softness we've seen ultimately makes us concerned for end demand's pull on processors. Likely, the second half of the year will be seasonal given the early build for Intel's Sandy Bridge and AMD's Fusion architecture launches, but lower than the year-over-year growth seen in the first half of the year. 2011 remains a wildcard in terms of sustainable unit growth."