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Chip Decline Loses Momentum; Atom Sales in a Tailspin

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The sharp and steady decline in PC chip shipments in recent times can be likened to a tailspin. Market research firm IDC has published its appraisal of PC chip shipments in the first quarter of 2009. PC chip shipments are still in a nosedive per IDC, though the pace of their descent has decreased considerably.

PC chip shipments only dipped by 10.9 percent from the previous quarter. It is not as sharp a decline as the one registered in the fourth quarter of 2008, when shipments plunged by 17 percent.

Intel shipped 33 percent less Atom processors during the first quarter compared to the fourth quarter of 2008. The decline in Atom shipments isn’t entirely surprising as suppliers have amassed a huge stockpile of Atom processors.

The first quarter bought some relief for AMD as its market share improved by 4.6% to reach 22.3 percent. AMD improved its standing in both the PC and mobile markets at the expense of Intel, which had its market share trimmed down to 77.3 percent from 82 percent in the previous quarter.

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