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PC microprocessor market rebounds, but still weak

Business IT - Technology

PC microprocessor shipments are up around the world, with the increase driven more by Intel and OEM inventory refreshes, rather than the return of significant end-demand for PCs.

In its latest report for the second calendar quarter for this year IDC says, in unusually positive news, that PC microprocessors shipments rose 10.1% from 1Q09 to 2Q09, compared to –10.9% from 4Q08 to 1Q09.

IDC also reports that unit shipments declined 7.0% year over year and market revenue increased 7.9% from 1Q09 to 2Q09, compared to –11% from 4Q08 to 1Q09.  However, second quarter revenue declined 15.3% compared to the same quarter in 2008 and, according to IDC, Intel's overall PC processor shipments increased 12.5% from 1Q09 to 2Q09, while AMD's overall shipments increased 1.8% in the same period.

In his forward forecast for the microprocessor market, Shane Rau, IDC’s director of semiconductors: personal computing research, says that having identified Intel and OEM's refreshing inventory as the major factors in 2Q09 and not the return of end demand, he “cannot yet say that the PC processor market is recovering,” and warns that the market is still in weak condition.”

"Going forward," added Rau, "IDC believes that ODMs and OEMs have balanced out their inventories and so we can't rely on inventory replenishment to drive market improvements.
 
“Instead, we can only rely on what actual end demand really is, and that means we have to be cautious not to be over-exuberant that, say, the traditional back-to-school PC buying season will materialize into a bullish second half. It won't."

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