Global CPU shipments fell by 34% year-on-year, with Intel and AMD both spared

[Gearbest News]Currently, most industries around the world have entered a normal production cycle due to the stabilization of the epidemic. However, it seems that the CPU market has bucked the trend during the epidemic and has begun to shrink. Recent data from Mercury Research shows that CPU shipments experienced a historic plunge in the fourth quarter of last year.

Global CPU shipments fell by 34% year-on-year (picture source from the Internet)

Dean McCarron, president of Mercury Research, revealed on Thursday that x86 CPU shipments from manufacturers including Intel and AMD suffered the largest year-over-year and quarter-over-quarter declines in Mercury Research's 30 years of tracking the market, with year-on-year declines of 34% and quarter-on-quarter declines of 19%.

The reason for this may be a sharp drop in market demand. As working from home became the norm in society in the past two years, notebook computer sales on the market increased rapidly, and the purchase of personal computer graphics cards surged, which prematurely consumed market demand. Therefore, starting from the fourth quarter of last year, reduced demand for personal computers and excess inventory from retailers and suppliers depressed CPU shipments. Now the CPU market has returned to normal market demand levels.

Mercury Research added that unit shipments in 2022 will be 374 million (excluding ARM processors) and revenue will be $65 billion, down 21% and 19% respectively. However, overall processor market revenue in 2022 will still be higher than any year except 2020 and 2021.

At the same time, excess product inventory is also causing Intel and AMD to under-ship CPU units, something both companies acknowledged during their recent earnings calls. Laptop shipments suffered their largest year-over-year decline ever. At the same time, desktop CPU shipments have also fallen sharply, which is also related to Intel's decision to increase the price of the company's chips last year, which led to a surge in demand in the third quarter and an increase in the gap in the fourth quarter.

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