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Microprocessor sales up, more growth expected

While sales of microprocessors increased in the final quarter of 2011, the IDC believes that 2012 will see stronger growth.

Worldwide sales revenue from PC microprocessor units rose strongly in the fourth quarter of 2011, according to the latest data.

The International Data Corporation (IDC) notes that revenue in this sector reached $10.9 billion in the final three months of last year, up 1.8 per cent on the previous quarter.

However, this represents a 14.2 per cent increase year on year, and brings the total 2011 revenues to more than $41 billion, a rise of 13.2 per cent compared to 2010.

"The average selling price (ASP) that original equipment manufacturers pay for PC microprocessors rose more than nine per cent in 2011, making 2011 the second consecutive year of notable ASP increases," said Shane Rau, director of Semiconductor Personal Computing research at IDC.

Looking more broadly at shipment rates, 2011 saw these rise 3.6 per cent compared to the previous 12 months, with desktop processor shipments increasing 2.7 per cent.

As for the vendors, Intel continues to hold a command market share. Four in every five microprocessor units sold worldwide are made by Intel, as the company added a 0.1 per cent gain to its market share in the final quarter of 2011.

AMD saw its market share decrease by 0.1 per cent, but at 19.6 per cent it represents almost all the non-Intel sales. In the PC microprocessor sub-sector, Intel's market share now stands at 83.3 per cent.

Looking forward to 2012, the IDC expects PC microprocessor unit shipment growth to reach 5.1 per cent.

After the hard disk drive shortage caused by the flooding in Thailand, vendors cut back on their advance microprocessors. The improvement in the sector expected this year, the IDC claims, will be a sign of things slowly returning to normal.
"IDC now believes that the HDD shortage will not be a significant factor in PC shipments in 2Q12," it notes.ADNFCR-1220-ID-801320098-ADNFCR