Graphic Chip Sales Brighten PC Market Outlook - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
4/28/2009
06:52 PM
50%
50%
RELATED EVENTS
[Cybersecurity] Costs, Risks, & Benefits
Feb 28, 2017
How much should your organization spend on information security? What's the potential cost of a ma ...Read More>>

Graphic Chip Sales Brighten PC Market Outlook

The big winners in the PC market were Intel and Nvidia, which saw quarter-to-quarter growth of 7.5% and 4.8%, respectively.

Shipments of graphics processors in the first quarter were higher than the end of last year, an indication that PC makers and other industries are starting to replenish inventories, a research firm said Tuesday.

The 3.3% uptick from the fourth quarter of 2008 was the first time in eight years that the first quarter broke the season trend of lower shipments, Jon Peddie Research said. On a year-to-year comparison, the news was not as good. Unit shipments in the first quarter fell 21.1% from the same period in 2008.

Nevertheless, the quarter-to-quarter boost is an indication that industries that use graphics processors are buying again as a result of depleted inventories, Peddie said. Companies, such as PC makers and manufacturers of aerospace, automotive, and medical systems, had pretty much stopped ordering GPUs in the third and fourth quarters of last year.

The big winners in the PC market were Intel and Nvidia, which saw quarter-to-quarter growth of 7.5% and 4.8%, respectively. Advanced Micro Devices saw shipments fall by 8.5%. Year to year, the three major vendors were all in the negative numbers. AMD shipments fell by 27.5%; Intel, 8.2%; and Nvidia, 25%.

Peddie expects the sales of graphics chips to PC makers to return to normal seasonal trends in the third quarter of this year. However, shipment levels aren't expected to return to 2008 levels until 2010, because of the economic recession.

Driving higher sales of GPUs for PCs include new designs from AMD's ATI unit and Nvidia, the need for system manufacturers to boost inventories for back-to-school and holiday sales, and new operating systems hitting the market: Apple's Snow Leopard and Microsoft's Windows 7, Peddie said.

Another sign that the PC market may be starting to recover from the economic downturn is in the latest shipment numbers from IDC. Overall, the market in the first quarter fell 7.1% from a year ago, which was less than the analyst firm had expected. IDC had projected an 8.2% decline and said it expects year-to-year growth to return toward the end of the year.


Learn more about all the latest products and technologies at TechWeb's Interop Las Vegas, May 17-21. Join us (registration required).

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll