Feeds

Q1 chip sales plunge reveals slowing demand for netbooks

Fad finished?

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
Jaguar Sportbrake: The chicken tikka masala of van-sized posh cars
Indian-owned Jag's latest offering curries favour with us
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Here's your chance to buy an ancient, working APPLE ONE
Warning: Likely to cost a lot even for a Mac
Xiaomi boss snaps back at Jony Ive's iPhone rival 'theft' swipe
I'll have a handset delivered. Judge us after you try us...
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.