PC Processor Shipments See Steepest Decline In 30 Years


A new report by Mercury Research indicates that the x86 processor market has suffered "the largest on-quarter and on-year declines in its 30-year history." The downturn was caused by a combination of lower demand and an inventory correction, leading to a 21% decrease in 2022 unit shipments and a 19% decrease in revenues YoY. 

Despite this, overall processor revenue was still higher in 2022 than in any year prior to the 2020s. AMD saw growth in its market share in the server CPU segment and in the shrinking desktop and laptop markets, resulting in a market share growth from 23% in 2021 to nearly 30% in 2022. 

AMD has gained ground on Intel across desktops, laptops, and servers, resulting in a 3.7% market improvement and nearly 9% gain YoY. Despite a downturn in laptop CPU shipments, AMD is doing well in desktop and server shipments. The primary cause for Intel's loss in all three segments is attributed to inventory issues. Mercury estimates that ARM CPUs make up 9.4% of the market, down from the previous quarter but up 1.7% YoY.

Most of the downturn in shipments is attributed to excess inventory shipping in prior quarters and deliberate limitations by suppliers to increase the rate of inventory consumption, and the trend is expected to continue through H1 2023.

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