Global processor shipments slow in Q1

Worldwide PC microprocessor shipments "slowed notably" in the first quarter of 2008, new analysis reveals.

IDC said that shipments of processors for desktop PCs led the slowdown in the quarter with sequential growth of minus 11.9 per cent.

Processors designed for mobile PCs and servers fared slightly better, showing growth of minus 5.9 per cent and minus 6.0 per cent respectively compared to 4Q07.

All three segments experienced solid year-over-year growth, however, led by a 42.8 per cent increase in microprocessor shipments for mobile PCs.

In year-over-year comparisons, overall unit shipments and market revenue grew by 25.7 per cent and 15.9 per cent respectively.

"Total worldwide market shipments tend to decline from fourth quarter to first quarter because of seasonal demand patterns," said Shane Rau, director of semiconductors: personal computing research at IDC.

"However, the sequential decline in unit shipments from 4Q07 to 1Q08 was more than the minus 6-7 per cent decline we typically see.

"Economic concerns in the US, and the effects on corporate and consumer systems purchases, meant a stronger sequential decline in 1Q08."

Intel experienced a small gain over AMD in the first quarter in terms of processor vendor shares.

On an overall unit basis, Intel earned 78.9 per cent market share, a gain of 2.2 per cent. AMD earned 20.9 per cent market share, a loss of 2.2 per cent.

IDC's outlook for the second quarter of 2008 is for another sequential decline of approximately five per cent.

"Processor shipments in the second quarter of a year are typically at their lowest point for the whole year," added Rau.

"This year, IDC's outlook is slightly more conservative than in past years as economic concerns and consumer and corporate confidence remain issues."