x86 PC Processor Shipment Growth Above Average in Q4 2002, AMD Regains Some Share, Says IDC

MOUNTAIN VIEW, CA – MARCH 13, 2003 – The x86 PC processor market performed above subdued expectations in the fourth quarter of 2002 according to IDC's latest quarterly processor market share report. 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 (IDC #28592), 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. It also reorganized its supply chain and managed to improve its sell-through efficiency.

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%. IDC will present its final market share results for 2002 in its upcoming annual market share report.

IDC tracks both the x86 PC processor and PC core logic chipset markets on a quarterly basis. For more information about our research or to subscribe to IDC’s Semiconductor: Desktop and Mobile PCs research program, please call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

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