Worldwide PC chip sales on Thursday soared 10.1 percent in the second quarter, but it still is in weak condition, according to IDC.
Shipments of PC microprocessor worldwide rose 10.1 percent in the second quarter compared with 10.9 percent decline in a year earlier. The increase was driven by Intel, which jumped 12.5 percent, followed by AMD with 1.8 percent increase in the period.
Intel’s Atom chip took a major increase of 34 percent in the quarter, particularly in netbooks, the firm said.
However, the increase in chip sales did not boost market revenue, IDC said. The overall market revenue rose 7.9 percent quarter-to-quarter, but second-quarter revenue was down 15.3 percent compared with 16.1 percent in the same quarter a year ago.
The percentage of Intel's revenue earned in Asia/Pacific grew from 51% in 1Q09 to 55% in 2Q09, IDC said. This fact, combined with the significant sequential 'snap-back' rise in Intel's overall processor shipments—particularly Atom shipments—while AMD's overall shipments were about flat, indicate that the PC processor market didn't recover in 2Q09. Instead, the market balanced out due to Intel driving Atom processors into ODMs who manufacture the systems, particularly in China and Taiwan.
IDC continues to believe that sequential microprocessor unit shipment will decline in the quarter.
“We can't rely on inventory replenishment to drive market improvements. Instead, we can only rely on what actual end demand really is, and that means we have to be cautious not to be over-exuberant that, say, the traditional back-to-school PC buying season will materialize into a bullish second half. It won't.
Meanwhile, shares of Intel fell $0.08 or 0.42 percent at $18.78 in the regular trading.