PC Servers Are Expected to Increase by 1.6%

Unit shipments of PC microprocessors to rise 3.2%.

Worldwide revenues for microprocessors designed for mobile PCs, desktop PCs, and PC servers are expected to increase by 1.6% to $40.7bn in 2013, according to a new forecast report from International Data Corporation (IDC).

IDC PC server semiconductor and enabling technologies research vice president, Shane Rau, said that economic and technological inhibitors that took the PC microprocessor revenue down 2.4% in 2012 will continue through the first half of 2013.

"Delays in PC purchases caused by Windows 8 and the encroachment of media tablets on low-end PCs have further cut into PC microprocessor demand growth," Rau said.

The report also forecasted that 3.3% of mobile PC processors and 3.2% of PC server processors will be based on the ARM architecture by 2016.

"Vendors should strive for an increased perception of value so systems can be sold on their utility and not merely their price," added Rau.

The Worldwide PC microprocessor market revenue is expected to grow at a compound annual growth rate (CAGR) of 3.4%, while shipments are expected a CAGR of 3.2% during 2011-2016.

"For vendors of microprocessors and other PC technologies, the future belongs to those who can best execute on a vision of what computing ultimately should be and how users assess the value to them," Rau added.

"Vendors should strive for an increased perception of value so systems can be sold on their utility and not merely their price. Such a transformation requires time for assessment and education along the value chain. It also requires sustained investments in the PC ecosystem distinct from the investments going into the hot tablet ecosystem."