IDC: PC chip sales to grow 8.9 per cent

The worldwide market for desktop and notebook PC chips will grow 8.9 per cent next year, after a sharp 35.5 per cent drop in 2001 and a flat 2002, according to market research company IDC.

Revenue in the market, which includes processors and PC chipsets, will reach US$39.4 billion in 2003, up from $36.2 billion this year, IDC said. However, the recovery won’t begin until the second half of next year.

IDC’s forecast came the same day that both Intel and Advanced Micro Devices (AMD), the two main players in the PC semiconductor market, raised their fourth-quarter sales forecasts due to better than expected sales.

The mobile PC segment will grow fastest, 11.1 per cent from $8.25 billion to $9.2 billion, while the desktop market will see 8.2 per cent growth from $27.9 billion to $30.2 billion, IDC said.

Unit shipment growth of processors and chipsets has already seen seasonal growth, but revenue still suffers from price erosion, according to the analyst.

IDC also released its worldwide PC shipments forecast recently, predicting 8.3 per cent growth in shipments to 147.5 million units in 2003 and 11 per cent to 163.8 million units in 2004.

The market research group expects PC shipments in 2002 to rise 1.6 per cent over the previous year to 136.2 million. IDC sees several market drivers, including the rising popularity of wireless and broadband networks, new computer designs and media convergence.

In 2003 and beyond, IDC expects business and consumer PC spending to rise, while government spending will slow due to reduced budgets.