The x86 PC processor market performed above subdued expectations in the fourth quarter of 2002 according to the latest quarterly processor market share report from IDC.
The report indicates that both unit shipments and revenues improved quarter-over-quarter and were above their sequential norms. However, average selling prices (ASPs) were essentially flat, reflecting a lower percentage of value-oriented processors in the overall processor mix as well as price cuts on volume desktop mainstream processors.
‘The x86 PC processor market did better than expected in Q4, but the quarter was still a mixed bag. Flat ASPs indicate that price erosion is an ongoing concern, particularly as we continue through the first half of 2003 with reduced seasonal demand,’ said Shane Rau, senior analyst for IDC’s Semiconductor: Desktop and Mobile PCs research program.
The IDC study, ‘Worldwide x86 PC Microprocessor Market Share’, 4Q02, reveals that on an overall unit basis, AMD recaptured 2.7% of the 4.1% market share it lost last year, ending the fourth quarter with 15.4% share. Intel gave back 2.4%, ending the quarter at 83.3%. VIA, with 1.0% share, and Transmeta, with less than 1% share, split the remainder of the market.
After losing market share in the second and third quarters of 2002, AMD stopped the decline in Q4 by shipping high-end desktop processors that raised its overall ASP.
Looking back at the entire year of 2002, IDC estimates that overall market unit shipments were up 3.0% relative to 2001. However, average selling prices were down approximately -2.6%, which left overall revenue essentially flat. In terms of market share, IDC’s preliminary results indicate that Intel gained 3.6% in 2002, ending at 82.5%, while AMD lost 4.3%, ending at 16.3%.