Worldwide PC Processor Market Hits Record Levels of Unit Shipments Again in 4Q07,...

Worldwide PC Processor Market Hits Record Levels of Unit Shipments Again in 4Q07, According to IDC

But Average Selling Prices Remain Stable as OEM Demand Shifts to
High-end and Mainstream Processors
SAN MATEO, Calif.--(Business Wire)--Worldwide PC microprocessor shipments grew 8.5% sequentially in
the fourth calendar quarter of 2007 (4Q07) to reach record levels for
the second quarter in a row, according to new data from IDC. Growth in
overall unit shipments and stable average selling prices stimulated
overall market revenue to grow 9.6% sequentially to $8.7 billion.

Shipments of processors designed for PC servers stood out in the
quarter, growing 17.0% sequentially. Shipments of processors for
mobile PCs grew 10.3%, while processors for desktop PCs grew 6.5%. IDC
analysis also reveals that, within each form factor, the percentage of
high-end and mainstream processors grew at the expense of low-end
processors. For example, in the desktop processor segment, high-end
and mainstream processors represented 87.1% of processors shipped in
4Q07, up from 84.6% in 3Q07.

"Overall market pricing was very stable in the quarter," said
Shane Rau, director of Semiconductors: Personal Computing research at
IDC. "Since server and mobile processors carry a premium over desktop
processors and they grew more than desktop processors, they buoyed the
market average price. The fact that the high-end and mainstream
segments within all form factor segments grew faster than the value
segments kept pricing even firmer. We attribute this result to the
aggressive pricing at which suppliers introduced new products in 2Q07
combined with the demand for more robust PC configurations necessary
to support Windows Vista. As the year progressed into 4Q07, the
pricing drew in more buyers who wanted these relatively high-end
products to support this operating system."

For the full year 2007, total worldwide PC processor shipments
grew 12.6% compared to 2006. Total revenues grew 1.7% to $30.55
billion. The disparity of unit growth and revenue growth indicates the
degree of price erosion that occurred early in the year 2007.

Vendor Highlights

Processor vendor shares in 4Q07 did not change significantly from
those in 3Q07. On an overall unit basis, Intel earned 76.7% market
share, a gain of 0.4%. AMD earned 23.1%, a loss of 0.4%. These shares
are identical to the shares of 2Q07.

By form factor, market share changes were very modest. In the
mobile processor segment, Intel earned 81.9% share, a gain of 1.1% and
AMD earned 17.8%, a loss of 1.1%. In the PC server processor segment,
Intel earned 85.4%, a loss of 0.6% and AMD earned 14.6%, a gain of
0.6%. In the desktop PC processor segment, Intel earned 72.1% share
and AMD earned 27.7%; share changes were negligible.

Market Outlook

IDC has a conservative forecast for PC processor demand in 1Q08
and 2Q08. "While processor shipments typically decline about 6% to 7%
between the fourth quarter and the first quarter, economic concerns in
the U.S. and the effects on corporate and consumer systems purchases
could mean a stronger sequential decline in 1Q08," added Rau.
"However, the weakness in the U.S. dollar effectively means a price
discount for overseas markets that are driving PC unit demand, so this
could have a mitigating effect."

IDC expects that mobile processors will continue their strong
growth in 2008. "Despite how overall demand may affect them in the
first half of 2008, mobile processors will continue on a double-digit
growth track for the year and on track to surpass desktop processors
in 2009, " said Richard Murphy, IDC Inquiry Analyst.

IDC's forthcoming study, Worldwide PC Processor 4Q07 Vendor
Shares, provides the worldwide market and vendor share results for PC
processor vendors on an overall unit and revenue basis and by form
factor (desktop, mobile, and PC server). For more information, please
contact Shane Rau at srau@idc.com.

About IDC

IDC is the premier global provider of market intelligence,
advisory services, and events for the information technology,
telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community make
fact-based decisions on technology purchases and business strategy.
More than 900 IDC analysts provide global, regional, and local
expertise on technology and industry opportunities and trends in over
90 countries worldwide. For more than 43 years, IDC has provided
strategic insights to help our clients achieve their key business
objectives. IDC is a subsidiary of IDG, the world's leading technology
media, research, and events company. You can learn more about IDC by
visiting www.idc.com.

All product and company names may be trademarks or registered
trademarks of their respective holders.

IDC
Shane Rau, 650-350-6437
srau@idc.com
or
Richard Murphy, 650-350-6207
rmurphy@idc.com

Copyright Business Wire 2008