Strong Intel sales push global PC chip market to record Q2

Despite bad economy and sluggish time of the year, unit shipments remain strong

By Sharon Gaudin

August 14, 2008 12:00 PM ET

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Computerworld - Defying a bad economy and what is normally a bad season for computer chip sales, worldwide PC microprocessor shipments in the second quarter of this year reached what IDC analysts called record levels.

IDC today reported that global PC processor unit shipments grew 3.1% from the first to second quarter of 2008. And second-quarter sales grew by 16.1% compared to the year-earlier period. IDC didn't disclose its projected sales totals.

Intel Corp., according to IDC, can take a lot of credit for the strong numbers.

"While sequential market growth is unusual in the second quarter of the calendar year, it's clear that in [the second quarter of 2008], Intel's [PC] processor shipments drove the growth," said Shane Rau, an analyst at IDC, in a statement. "Intel's processor shipments alone grew nearly 4.3% [quarter over quarter] and 20.8% [year over year], while AMD's processor shipments were about flat."

Intel is on a roll, according to the IDC figures. The chip maker's market share grew by 0.9% in the second quarter, bringing it to 79.7%. Troubled rival Advanced Micro Devices Inc.'s share of the PC microprocessor market dropped 1.2% to 19.7%, IDC reported.

IDC projects that the overall global PC chip market will continue to grow this year to $32.8 billion by the end of 2008.

"While processor unit shipments exceeded our forecast in Q2 '08, Intel's aggressive approach to the market, through both product and pricing, points to a major, supply-side variable," said Rau. "However, economic concerns cause us to maintain our conservative outlook for the second half of the year."

Read more about processors in Computerworld's Processors Knowledge Center.

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