AMD’s Market Share Drops, Intel’s Rises in Q1 2010 – IDC

Shipments of Microprocessors Show Tremendous Annual Growth

by Anton Shilov
04/29/2010 | 07:03 PM

The market of central processing units (CPUs) decreased slightly in the first quarter of 2010, but increased dramatically compared to the Q1 2009, according to the latest figures by International Data Corporation (IDC) market research firm. Advanced Micro Devices lost part of the market share to Intel Corp., however, the loss was modest.

CPU Market Down 5.6% Sequentially, Up 39% Year-over-Year


Worldwide PC microprocessor unit shipments in the first calendar quarter of 2010 (Q1 2010) declined 5.6% compared to Q4 2009, according to the latest PC processor study from IDC. When compared to Q1 2009, shipments in Q1 2010 rose 39.0%. Total market revenue in Q1 2010 fell 2.0% compared to Q4 2009 and rose 40.4% compared to Q1 2009.

A decline between a calendar year's fourth quarter and the next calendar year's first quarter is typical of seasonal demand patterns, but this decline is less than normal. At the same time, almost 40% increase of market volume year-over year is tremendous.

"PC processor shipments typically decline around 7% to 8% going from fourth quarter to first quarter. A decline of 5.6% is modest and wouldn't mean much by itself. However, after the huge rise in shipments we saw in the fourth quarter, it adds more credibility to market recovery and that the PC industry anticipates improvement in PC end demand in 2010." said Shane Rau director of semiconductors: personal computing research at IDC.

Average Selling Prices Increase

The overall market average selling price in Q1 2010 rose 4.1% quarter over quarter due to more high-end processors in the total mix compared to Q4 2009. Notably, Intel's low-end Atom processor for netbooks represented 20% of Intel's mobile PC processor mix in Q1 2010, which is down from 24% in Q4 2009.

"Intel's new Core processors and AMD's new Athlon processors are ramping, and at a time when, IDC believes, consumers and corporations will be anticipating a much healthier 2010 and looking for more value than just low price in their PCs. In terms of the processor, that means more openness to paying for benefits such as good performance and reduced power consumption that serves long battery life,” said Mr. Rau.

Looking at market performance by PC form factor, mobile PC processors declined 6.3% quarter over quarter, desktop PC processors declined 5.1% quarter over quarter, and PC server processors declined 1.4% quarter over quarter.

AMD Loses Market Share Across the Board

In Q1 2010, Intel earned 81.0% unit market share, a gain of 0.5%, while AMD earned 18.8%, a loss of 0.6%, and VIA Technologies earned 0.2%.

By form-factor, the rankings for Q1 2010 were as follows:

CPU Market Set to Grow Further

IDC's forecast for worldwide PC processor unit growth in 2010 is 15.1%. However, the results of Q1 2010, low inventories, strong outlooks from PC semiconductor vendors and some PC OEMs, and a generally positive outlook for consumer and corporate IT spending for the rest of the year, are strong signs for additional growth.

"IDC will be watching 2Q10 very closely. Specifically, we'll be watching for the expected improvement in corporate IT spending and talking to PC component suppliers to make sure that, after a long period of anemic capital expenditures, they believe end demand is solid and are bringing new capacity online,” concluded Mr. Rau.