Demand for PCs Slows, Affecting Intel and AMD

Analysts have lowered their estimations for the two chip makers

By Ionut Arghire, Windows Editor

November 12, Softpedia

The previous financial estimations for Advanced Micro Devices and Intel Corp. have been reduced by many industry analysts. According to them, the demand of personal computers is expected to lower during the fourth quarter of the year, while also continuing on a down road during 2009, which means that the financial performance of the two central processing unit makers will be affected.

During the next year, the total available microprocessor market will see only a 2 percent growth, says analyst Tim Luke from Barclays Capital. The analyst has made a previous estimation of 5 percent growth for the market, also adding that the Atom processor designed for the ultra low-cost personal computers would raise the estimation to a 6 percent growth. According to Tim Luke, the industry revenue is expected to drop 2 percent next year amid unit sales growth.

"The supply chain is telling us that there is strong concern for demand decline, probably into the low- to mid-single digits on a unit basis for total PC processor growth in the year 2009," Shane Rau, an analyst at IDC, is reported to have said in an interview.

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