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CPU industry revenue grew less vigorously thanks to increased sales of netbook CPUs

Research firm IDC reported in October that Acer had kicked Dell from the second spot in the top global computer shippers list. This week, IDC has released the numbers for CPU shipments for Q3 2009. The processor market grew compared to the same quarter of 2008 by 23%. Since a large portion of the processors shipped were lower cost netbook parts, overall revenue in the CPU marker grew, but not as robustly as sales.

Netbook processors were the big driver, pushed by demand in China. Overall revenue in the global market for the quarter grew 14.1% to $7.4 billion. Shipments of CPUs for the quarter exceeded Q3 2008, which was a record quarter.

IDC's Shane Rau said in a statement, "Compared to where the market was at the beginning of 2009, PC processors have come back remarkably strong." Rau warned, "The Chinese market can be very opaque -- there are lots of places where inventories can hide. We have to be on the lookout for when China decides it can't consume more processors. Meanwhile, the U.S. market is still hamstrung by housing foreclosures and rising job losses."

Over the quarter, the average selling price of CPUs dropped more than 7%. That is a result of more growth in the cheap netbook processor market. Intel maintained the clear lead in the CPU market with 81.1% of the market. AMD ended the quarter with 18.7% of the market with VIA holding about 0.2% of the total CPU market globally.

"While Atom processors led the PC processor market to reach record unit shipments, on the revenue side, their low average selling price led to notable price erosion, more than 7%," Rau said.

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Holy #$$!sticks
By dflynchimp on 11/10/2009 1:21:39 PM , Rating: 0
81.1%? Man things are worse for AMD than I thought. It's a real shame because the Phenom II's are a really good bunch of cpus.

I'd be interested though to see a more detailed breakdown of shipments separating the mobile from desktop market. From what I know Intel seems even more dominant in the notebook market and if they're counting the Atom/netbook numbers than that could explain the 81.1%

RE: Holy #$$!sticks
By Bateluer on 11/10/2009 1:24:47 PM , Rating: 2
AMD's 19% market share isn't bad, considering Intel was essentially bribing companies not to use AMD chips. Still, compared to other technical things, such as the percentage of Windows to Linux to MacOS, or the ration of IE to FireFox to Safari, 19%is pretty solid when you're up against an opponent several times larger with far deeper pockets.

RE: Holy #$$!sticks
By BSMonitor on 11/10/2009 3:16:56 PM , Rating: 4
Funny how it's bribing when you don't like the guy, but good business when you do...

You ever go to McDonalds and ask for Pepsi. You think McDonalds chooses Coke solely on the merit of its product...

Get a clue..

RE: Holy #$$!sticks
By amanojaku on 11/10/2009 1:27:06 PM , Rating: 2
Man things are worse for AMD than I thought.
Where have you been? Intel has something like a +70% clinch on desktop, server and notebook CPUs. Since AMD doesn't make any other kind of CPU it's a no-brainer that Intel is at +80% for total CPU shipments, including netbooks and embedded applications. If anything, AMD is doing ridiculously well considering it's recent f-ups.

RE: Holy #$$!sticks
By cfaalm on 11/11/2009 9:50:25 AM , Rating: 2
Since AMD doesn't make any other kind of CPU

I know they haven't launched their netbook CPU, but you are saying AMD is out of the embedded?

RE: Holy #$$!sticks
By smilingcrow on 11/10/2009 6:48:13 PM , Rating: 3
I'd be interested though to see a more detailed breakdown of shipments separating the mobile from desktop market.

‘IDC has also included form-factor-specific numbers. In desktops, Intel had 72.2% of the market to AMD's 27.4%. In the mobile market, that ratio shifted to 88% and 11.9%. And in servers and workstations, Intel captured 90.4% of shipments to AMD's 9.6%. Compared to the previous quarter, AMD has seen its share declines in all three markets.’;jsessionid=PVIHIAZUW...

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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