Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Processors/DSPs

Barclays sees PC processor, server growth this year

Posted: 22 Feb 2010     Print Version  Bookmark and Share

Keywords:PC market  processor  server 

Even though unit sales of PC processors and PC servers will go up this year, the average selling price of the chips will be on the decline over the next two years as per a Feb.17 report by Wall Street Analyst firm Barclays Capital.

Although Advanced Micro Devices made modest market share gains in unit sales in a strong Q4 09, it did not gain ground on archrival Intel Corp in revenue. Barclays did not change its ratings for AMD, Intel or Nvidia, but was most bullish on the outlook for Intel.

The firm expects PC processor sales to grow 15 per cent in 2009 to 39 crore (390 million) units, up a percentage point from its prior forecast of 38.5 crore (385 million) units. Sales will grow 14 per cent in 2011 to 44.3 crore (443 million) units, it estimated.

Barclays also issued an updated report of PC server sales forecasting unit growth at 12 per cent in 2010 versus eight per cent in its previous forecast. It estimated unit growth in notebook sales for 2010 at 27 per cent with desktops about flat at three per cent growth.

The firm cited strong Q4 sales, an expected uptick in businesses buying new computers and an overall economic recovery as reasons for its improved forecasts. PC processors sales rose 6.2 per cent in 2009 to 33.9 crore (339 million) units, it reported.

The ASP of a PC processor was up six per cent or about Rs.230.89 ($5) in the last quarter to (Rs.4,109.75) $89, mainly due to improvements in the price of server chips. However Barclays predicted ASPs will decline three per cent to Rs.3,925.05 ($85) in 2010 and fall another five per cent in 2011 to Rs.3,694.16 ($80).

AMD gains about a half a percentage point in market share during the last quarter of 2009 in which total PC processor sales rose 9.1 per cent over the previous quarter to about 10 crore (100 million) units. However, AMD's share of processor revenues remained largely unchanged as its ASPs rose just 1.9 per cent compared to a 6.5 per cent ASP increase for Intel.

Despite the share increases and an expected to return to profitability, Barclays did not upgrade AMD's stock. "Long term, we recognise competitive pressures may remain intense with some pressure in the higher end of the server market given the momentum of Intel's Nehalem in 2010," the report said.

The Barclays report took an even harsher tone with Nvidia. "Long term reservations remain given the decline of the chipset business and fierce competition in its core GPU market with still limited visibility [on new processors such as Nvidia's] Tegra in 2011," the report said.

By contrast, the firm was relatively bullish on Intel. "We remain impressed with Intel's strong product roadmap with the introduction of new Westmere [32nm] products and [its] competitive positioning may provide incremental sales growth," it said.

- EE Times

Comment on "Barclays sees PC processor, server g..."
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top