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PC Processor Shipments Booming

AMD slightly regaining market share in Q3 2007

October 24, 2007 - Worldwide PC processor shipments grew 14.3 percent to record levels in Q3, IDC says. Consequently, worldwide PC microprocessor revenue rose 14.8 percent to $7.95 billion. According to IDC's study Worldwide PC Processor 3Q07 Vendor Shares, there is considerable worldwide demand for mobile PCs in the second half of the year.

The third quarter of 2007 was the second quarter in a row to exceed expectations in terms of PC processor unit shipments, said Shane Rau, director of IDC's Semiconductors: Personal Computing program. 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. 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.

AMD Gaining

Modest changes in processor vendor market share belied the intensity of vendor competition in Q3 2007. On an overall unit basis, AMD earned 23.5% market share, a gain of 0.4%. Intel earned 76.3%, a loss of 0.4%. By form factor, AMD's share in the mobile PC processor segment rose 1.9% to 18.9%, and its share in the PC server processor segment grew 0.7% to 13.9%. Market shares changes in the desktop PC processor segment were negligible.

Mercury Research found similar numbers, saying that X86 microprocessor shipments increased more than 15 percent between Q3 2006 and Q3 2007, largely driven by notebook CPU sales. Market shares of Intel and AMD are at 76.2 percent and 23 percent respectively.

IDC expects strong market demand for PC processors to continue in the fourth quarter. Both Intel and AMD noted in their Q3 earnings calls that demand remains strong, said Richard Murphy, IDC inquiry analyst.

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