InternetIDC: Chip Sales Grow, Prices Go Low
Cost-cutting was the only way to keep products flowing during the slowest quarter of the year.
Even in the face of a traditionally soft quarter and an economic downturn in the United States, semiconductor sales rose to record levels in the second quarter (Q2) of 2008 according to figures from IDC. Worldwide, unit shipments for the quarter ended June 30, 2008, grew 3.1 percent over the prior quarter and 16.1 percent over the same period last year. Both stats are remarkable, as the second quarter is traditionally considered the weakest time of the year, so to rise versus the first quarter is an accomplishment. To have a double-digit increase despite the sputtering U.S. economy is also notable. IDC semiconductors analyst Shane Rau attributes the rise to Intel not sitting on its laurels. "Intel had record shipments in Q2," he told InternetNews.com. "Their shipments actually went up,” Rau said. “They are driving their new platforms heavily and want to keep their momentum going by introducing new products at new prices." To get those sales, however, means massive price cuts. Revenue from x86 processors decreased 4.5 percent in the space of one quarter, from $8.0 billion in Q1 to $7.7 billion for the second quarter, echoing what Gartner (NYSE: IT) also said, that to maintain sales, vendors are cutting prices significantly to make the sale. RELATED ARTICLES Gartner: iPhone 'Acceptable' in the Enterprise Gartner: Global PC Market Grew in Q2 Chip Sales Continue to Grow, Albeit Slowly Intel Shows Off New Centrino Notebook Chips Scrutiny for iPhone's Infineon... [ Read more on www.internetnews.com ]
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