Chip shipments could face slow growth

Processor shipments could slow down till 2010 due to reduced demand for chips and the global economic downturn, IDC said on Monday.

Growth in processor shipments could slow down in the fourth quarter and through 2009, inhibited by a reduced demand for chips and the global economic downturn, IDC said on Monday.

Despite healthy growth in processor shipments during the third quarter, there is an under-demand for chips, with customers cutting orders from foundries that manufacture the chips, said Shane Rau, research director at IDC.

This dovetails what chip makers like Intel have said during recent earnings calls, hinting at a slowdown in chip demand, he said.

Shipments of PC processors grew 15.8 percent year-over-year during the third quarter of 2008, according to a study released by IDC on Monday. PC processor shipments during the quarter were in the "middle-to-high 80 millions," Rau said, with shipments of mobile processors exceeding desktop PC processors for the first time.

Mobile processors totaled around 50 percent of all shipments, compared to 46 percent for desktop processors. Intel-based x86 server processors -- like Intel's Xeon and Advanced Micro Devices' Opteron -- formed around 4 percent of the shipments.

Intel was the world's leading chip supplier in the third quarter, holding 80.8 percent market share, a 1.1 percent year-over-year increase, followed by AMD, which dropped 1.2 percent to 18.5 percent.

Intel's low-cost Atom processor witnessed healthy shipments in the third quarter, totaling around 5 million units, Rau said. Atom chips are targeted at netbooks, low-cost laptops designed to run basic applications for Web surfing and e-mail.

Atom shipments will continue to witness healthy growth through the economic slowdown, Rau said. Netbooks are affordable, making them attractive as primary PCs, especially in developing countries. They also can be used as secondary PCs, and some PC makers are also bundling netbooks as part of subscriptions, such as to Internet services, especially in Europe, Rau said.

Because it is new, it's too early to determine if Atom - as its own emerging market force -- will put pressure on the prices and costs of higher-end processors, Rau said. Growth for overall chip shipments will gain steam when the worldwide economy stabilizes, which should be in 2010, Rau said.

Until then consumers may find good deals on better-configured PCs, Rau said. With the memory market in the tank and possible price pressure on chips because of the economic climate, PC prices could fall. Those willing to spend cash will likely get a better deal from PC makers willing to compete for that cash.

However, consumers will still need to be able to put down money to get deals.

"People need to be comfortable to put food on the table ... before turning back to say 'oh I can buy a PC,'" Rau said.

Join the PC World newsletter!

Error: Please check your email address.

Tags chip shipments

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?