PC chip shipments saw better-than-usual Q1: IDC

HONG KONG, CHINA: Shipments of the processor that powers computers jumped 39 per cent in the first quarter, research firm IDC said on Friday, as a recovery in the global economy fuelled demand for tech buys.

Average selling prices also rose 4.1 per cent from the last three months of 2009, as consumers turned away from low-cost processors such as Intel's Atom chip in favour of more powerful and expensive chips.

"Consumers and corporations will be anticipating a much healthier 2010 and looking for more value than just low price in their PCs," said IDC analyst Shane Rau in a statement.

"In terms of the processor, that means more openness to paying for benefits such as good performance and reduced power consumption that serves long battery life."

Intel continued to dominate the sector, with some 81 per cent of all processors carrying its brand name, up 0.5 percent from the earlier quarter.

AMD took second place with a market share of 18.8 per cent, down 0.6 percent, while VIA Technologies was a distant third with 0.2 per cent, IDC said.

The numbers would be in line with PC shipment figures released earlier this month, which IDC said rose 24.2 per cent in the first quarter, as businesses finally began spending again on technology equipment.

The tech sector has been showing clear signs of a rebound in recent quarters, with top firms such as Intel and Apple (Ablowing past expectations and giving a strong outlook for the rest of 2010.

The shift towards higher-end chips away from those used to power the low-cost netbook PC may also bode well for chipmakers, who saw their revenues slip during the global financial crisis as consumers gravitated towards cheaper options.