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From the News Desk
Monday, 5. November 2007

Rising Demand for Laptops Aids Growth of Chip Market: IDC


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Evidencing the recent strength of laptops and making good on analysts' claims that the second half of the 2007 would bring more growth to the chip market, market research firm IDC has reported that worldwide microprocessor shipments grew 14.3 percent sequentially to reach record levels in Q3 2007. Consequently, worldwide PC microprocessor revenue rose 14.8 percent, to .95 billion in the third quarter of the year.

Not surprisingly, chips made for increasingly popular laptops led the market's pack. Shipments of processors designed for laptops grew 26.6 percent in Q3 2007, IDC said. Meanwhile, shipments of processors for desktop PCs and for PC servers increased by 7.7 percent and 4.6 percent, respectively.

Vendors chalked up a strong quarter owing both to the back-to-school rush and overall increased demand. "We attribute the market's performance to Intel's and AMD's aggressive pricing for their new platforms, which stimulated early demand from PC OEMs building PCs for the back-to-school buying season," said Shane Rau, director of IDC's personal computing semiconductors program, in a statement. "However, we also believe that real end demand is there. OEMs are passing processor savings onto consumers, who, instead of buying cheaper systems, are purchasing more robust configurations, partially to support Windows Vista."

Chip making underdog AMD continued to inch up in market share. On an overall unit basis, AMD earned 23.5 percent market share, a gain of 0.4 percent, during Q3, IDC said. Intel controlled 76.3 per cent of the market.



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