According to a preliminary
estimate by market research firm IHS, PC sales declined by the highest
amount in at least 10 years in the first quarter. Mobile PC shipments
declined 13.4 percent compared to the fourth quarter, IHS said. While
sales typically decline in the first quarter following the peak season
in the fourth quarter, the drop this year appears to be abnormally
sharp, even exceeding the 10.3 percent plunge during first quarter of
2009, when the financial and economic crises were at their peak.
PC Industry is facing major challenges as it struggles to find a place
in the consumer’s budget amid the rising popularity of the lower-priced
media tablet,” said Craig Stice, senior principal analyst for compute
platforms at IHS.
IHS expects PC market conditions to improve in
the second half of 2013 as new mobile products drive market growth.
Global shipments of ultrathin and Ultrabook PCs are expected to nearly
triple in 2013, mostly driven by increased sales in the second half of
For the second quarter, Intel said to expects sales of between $12.4 billion and $13.4 billion.
the full year 2013, Intel said it continues to expect revenue to
increase by a low single-digit percentage compared to 2012 sales of
$53.3 billion. The company cut its 2013 capital spending estimate by
about $1 billion, saying it now expects to allocate between $11.5
billion and $12.5 billion to capital spending.
challenging PC market and the notion that PC sales may have peaked,
Otellini said the future for Intel looks bright. "I am excited about
what lies ahead for Intel," Otellini said.
Intel's CEO search
"remains on track" with the goal of naming a successor when Otellini
retires next month, a spokesman for the company said. Executives did not
discuss the CEO search during the analyst call.
I feel that this is an inflection point for both Intel and Microsoft. The will either adapt like IBM did, or get destroyed like Kodak. Intel has a very high cost business model that can only be supported by high-ASP parts. The ARM-based SOCs being producted by Samsung and Nvidia have tiny ASP compared to x86 CPUs. Even if Intel destroys the competition in this arena, it would be a pyrric victory, since they would lose money on each chip.
I expected Q1 to be a slow season. This shouldn't be a big surprise. Q1 is historically a slow season. But with current trend such as smart phones and tablets, PC sales may continue to be a big problem. How will Intel be able to counteract? Will offering more foundry service be a solution for Intel?
The only good news out of this piece is the projection of $600 Ultrabooks price point. Hopefully the adaptation of the ultrabooks will give the pcmarket a boost and in some way create the level of demand that will drive the job creation badly needed during these times.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.