Fusion Helps AMD to Gain Market Share as Market Remains Flat - IDC

Analysts: CPU Unit Shipments Remains Flat YoY amid Increase of Market Revenue

by Anton Shilov
08/02/2011 | 05:50 PM

As the demand for personal computers weakens in mature markets, so does the demand towards central processing units (CPUs), according to International Data Corp. (IDC). One of the good indicators about the market performance is that despite of flat unit shipments year-over year, microprocessor vendors earned more money in Q2 2011 than in Q2 2010. Moreover, Advanced Micro Devices has finally started to fight back market share from Intel Corp.

CPU Unit Shipments Flat Year-over-Year as CPU Market Rises to $9.49 Billion

 

Worldwide PC microprocessor unit shipments in the second calendar quarter of 2011 declined 2.9% compared to Q1 2011 and were about flat compared to Q2 2010, rising 0.6%, according to the latest PC microprocessor market share study from IDC. On a revenue basis, the PC microprocessor market earned $9.49 billion, declining 4.0% compared to Q1 2011 and rising 5.4% compared to Q2 2010.

"The first quarter of 2011 was better than most first quarters due to the extra calendar week. So the sequential comparison isn't surprising. If we took off that extra week, the performance between the two quarters probably would have seen a seen a slight sequential uptick from Q1 to Q2," said Shane Rau, director of semiconductors: personal computing research at IDC.

Share of APUs Increase to 60% of PC Chip Volume

Both Intel and AMD continue to ramp their new platforms - AMD Fusion and Core i-series "Sandy Bridge" - that integrate graphics processing capabilities into central processing units. Such chips, which AMD calls APUs [accelerated processing units], rose to more than 60% of total PC processor unit volume in Q2 2011.

AMD's Share Soars, Thanks to Fusion

In Q2 2011, Intel commanded 79.3% overall worldwide unit market share, a loss of 1.5% compared to Q1 2011. In Q2 2011, AMD shipped 20.4% of x86 chips, a gain of 1.5% compared to Q1 2011. Via Technologies unit market share was 0.3%.

By form-factors the rankings in Q2 2011 were the following:

Apparently, the increased popularity of chips with integrated graphics as well as competitive offerings for both desktops and laptops, allowed AMD to get back 1.5% overall CPU market share from Intel. With the increased shipments of Fusion accelerated processing units in Q3 and the launch of Bulldozer FX-series CPUs late in the quarter, the company has chances to further improve its sales and market share.

IDC Lowers CPU Unit Shipments Forecast

Due to economic headwinds in developed regions that are affecting consumer PC demand, IDC has reduced its forecast for year-over-year growth in PC (mobile, desktop, x86 server) microprocessor unit shipments in 2011 from 10.3% to 9.3%.