Intel, AMD See Opportunity in Entry-Level, Mainstream PCs
Devinder Kumar, AMD's senior vice president and CFO, said that in the second quarter, the company's Computing Solutions unit saw revenues grow 12 percent over the first quarter, "due to significantly higher notebook and higher server and desktop unit shipments primarily driven by demand for our new Kabini and Temash offerings as well as our latest Opteron 6300 series of products." Intel moving more aggressively into the lower-priced PC space means closer competition with AMD in this area—as well as with ARM and its partners, who are looking to move their low-power chips found in smartphones and tablets into the entry-level PC market. Getting Kabini and Temash into the market before Intel's Bay Trail is launched will help give AMD an early edge, according to Lisa Su, senior vice president and general manager of AMD's Global Business Unit. "We do have the time-to-market advantage, and that proves good when you look at the systems that will be on the shelf both starting this quarter and into the summer," Su said. "And as we go forward, we think we are well-positioned versus Bay Trail as well. So, I think this is an important segment for us to continue to grow in." The PC market will continue to be difficult. Stacy Smith, Intel's executive vice president and CFO, said he expects the overall PC market to be weaker in 2013 than the company forecast at the beginning of the year. Revenues for Intel's PC Client Group in the second quarter were 8.1 percent, a 7.5 percent decline over the same period in 2012."While efforts by the PC ecosystem to bring down price points and embrace touch computing should make PCs more attractive, a lot still needs to be done in launching attractive products and addressing competition from devices like tablets," Chou said in a statement.
IDC analysts said that in the second quarter, PC shipments worldwide fell 11.7 percent over the same three months last year, though shipments in the United States stabilized and there should be growth in the industry in the second half of the year. However, there is a lot of work to be done by OEMs to help slow the downward trend in PC sales, according to Jay Chou, an IDC senior analyst.