Feeds

Q1 chip sales plunge reveals slowing demand for netbooks

Fad finished?

Mobile application security vulnerability report

Demand for Intel's netbook-oriented Atom processors plunged in Q1, but only from computer manufacturers, it seems.

Market watcher IDC this week said that Atom shipments were down 33 per cent during the first three months of 2009 when compared to the final three months of 2008.

So no one wants netbooks now? Not necessarily. IDC reckons that's a sign that computer makers built up big stocks of Atoms during the latter part of last year. During Q1 they were burning through their inventory, the researcher said.

Still, that doesn't imply strong demand from consumers. Said excess inventory suggests vendors' sales expectations were not met - that's why they had Atoms to spare at the end of Q4 2008 - which in turn means demand wasn't as strong as anticipated.

However, that's more likely to be a response to recession than a sign the netbook fad is over.

IDC said it believes Atom accounted for 21 per cent of Intel's shipments of mobile processors during Q1 but only 6.5 per cent of revenues of said.

So almost a quarter of laptop CPU shipments yielded less than a tenth of the money - not a trend Intel would want to encourage, surely?

Worldwide PC CPU shipments dipped as a whole between Q4 2008 and Q1 2009, IDC said, down 10.9 per cent following a dip between Q3 and Q4 2008 of 17 per cent. Unit shipments fell 13 per cent between Q1 2008 and Q1 2009.

Q1 sales revenues were down 11 per cent sequentially and 25.1 per cent year on year, IDC said.

Intel's market share fell 4.7 percentage points to 77.3 per cent in Q1, while AMD's went up by almost the same margin, to 22.3 per cent. ®

Boost IT visibility and business value

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Apple gets patent for WRIST-PUTER: iTime for a smartwatch
It does everything a smartwatch should do ... but Apple owns it
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.