PC processor shipments hit record level

The PC microprocessor market has hit record levels of unit shipments in the third quarter of 2008, according to market research firm IDC.

However, the outlook for the processor market in the fourth quarter of 2008 and 2009 is very murky.

Worldwide PC processor unit shipments grew 14 per cent quarter over quarter and 15.8 per cent year-on-year. Market revenue increased 7.6 per cent quarter-on-quarter and 4.1 per cent year-on-year to $8.3 billion (Dh30.49bn).

Intel's new Atom processor for ultra low-cost mobile PCs, which Intel calls Netbooks, made a notable difference in the overall market performance.

Without Atom, unit shipments went up 8.3 per cent quarter-on-quarter and 8.7 per cent year-on-year.

In terms of processor vendor shares, on an overall unit basis, Intel earned 80.8 per cent market share, a gain of 1.1 per cent, AMD finished with 18.5 per cent, a loss of 1.2 per cent, and VIA Technologies earned 0.6 per cent.

By form factor, in the mobile PC processor segment, Intel earned 87.4 per cent share, a gain of 0.8 per cent, AMD finished with 11.5 per cent, a loss of 1.1 per cent, and VIA earned 1.2 per cent, a gain of 0.3 per cent. In the PC server and workstation processor segment, Intel finished with 85.6 per cent market share, a loss of 0.6 per cent and AMD earned 14.4 per cent, a gain of 0.6 per cent. In the desktop PC processor segment, Intel and AMD earned 73.5 per cent and 26.4 per cent share respectively.

Due to the market's strong performance through the first three quarters of 2008 and anticipated high volume of Atom processors, IDC has raised its PC processor market unit forecast for this year to 18 per cent.

However, the worldwide demand environment looks weak, and both Intel and AMD indicated an uncertain outlook for the market.