2011 pc microprocessor revenue up 13.2%

According to IDC, global processor revenue was buoyed by strong fourth quarter demand as revenue increased 14.2% to $10.9bn, compared to the fourth quarter of 2010. The market analyst believes one reason for robust revenue growth was an increase in prices in 2011. "The average selling price that OEMs pay for pc microprocessors rose more than 9% in 2011, making 2011 the second consecutive year of notable price increases," said Shane Rau, director of semiconductors: personal computing research at IDC. Average prices are at the highest level since 2007, according to IDC. IDC reports that microprocessor unit shipments grew 3.6% in 2011 compared to 2010. By form factor, mobile pc processor unit shipments increased 3.9% in 2011, while x86 server processor unit shipments grew 9% and desktop processor unit shipments rose 2.7%. The researcher forecasts that revenue will rise 7% to $44bn. According to IDC, Intel lost microprocessor market share in 2011, while its rival AMD gained 0.7% and now holds 19.7% of the processor market. VIA Technologies is reported to have lost 0.1% market share and now holds 0.2% of the global microprocessor market. IDC forecasts that pc unit shipments should rise 5.1% in 2012. The researcher also notes that since the end of 2011, and so far through the first quarter of 2012, the hard disk drive (HDD) shortage that caused pc OEMs to reduce advanced purchases of microprocessors has improved. Severe flooding in Thailand last October resulted in the shutdown of a lot of HDD production, resulting in a shortage. However, the researcher says that the HDD shortage will not be a significant factor in pc shipments in the second quarter of this year. Combined with improving job growth in the US and stabilisation of debt issues in Europe, IDC states that it may raise its growth rate forecast modestly in the second quarter.