Intel Mobile PC Processor Shipments Exceed Desktop PC Processor Shipments for First Time

SAN MATEO, Calif., August 15, 2008 – Worldwide PC microprocessor shipments in the second calendar quarter of 2008 (2Q08) reached record levels again, according to new data from IDC. Despite the fact that the second quarter is typically the slowest quarter of the calendar year for processor demand and concerns that the economic woes in the U.S. are spreading to other regions, worldwide processor unit shipments grew 3.1% quarter over quarter and 16.1% year over year. Strong vendor price competition in the middle and low end of the desktop PC processor and mobile PC processor market segments caused overall market revenue to decline 4.5% quarter over quarter to $7.7 billion.

"While sequential market growth is unusual in the second quarter of the calendar year, it's clear that, in 2Q08, Intel's processor shipments drove the growth," said Shane Rau, director of Semiconductors: Personal Computing research at IDC. "Intel's processor shipments alone grew nearly 4.3% over the first quarter and 20.8% year over year, while AMD's processor shipments were about flat."

Vendor Highlights

In terms of processor vendor shares, on an overall unit basis, Intel earned 79.7% market share, a gain of 0.9%. AMD earned 19.7%, a loss of 1.2%.

By form factor, in the mobile PC processor segment, Intel earned 86.5% share, a gain of 1.3% and AMD earned 12.6%, a loss of 1.9%. VIA Technologies, based in Taiwan, earned 0.9% share, a gain of 0.7%. In the PC server/workstation processor segment, Intel earned 86.2%, a loss of 0.8% and AMD earned 13.8%, a gain of 0.8%. In the desktop PC processor segment, Intel earned 73.3% share and AMD earned 26.4%; share changes were negligible.

Market Outlook

IDC forecasts that PC processor market revenue will grow 7.5% in 2008 to more than $32.8 billion. "While processor unit shipments exceeded our forecast in 2Q08, Intel's aggressive approach to the market, through both product and pricing, point to a major, supply-side variable. However, economic concerns cause us to maintain our conservative outlook for the second half of the year."

IDC's forthcoming study, Worldwide PC Processor 2Q08 Vendor Shares, provides the worldwide market and vendor share results for PC processor vendors on an overall unit and revenue basis and by form factor (desktop, mobile, and PC server). For more information, please contact Shane Rau at srau@idc.com.

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