Sales of Client CPUs Soared in Q4 2023: Jon Peddie Research
Global client PC CPU shipments hit 66 million units in the fourth quarter of 2024, up both sequentially and year-over-year, a notable upturn in the PC processor market, according to the latest report from Jon Peddie Research. The data indicates that PC makers have depleted their CPU stocks and returned to purchases of processors from Intel during the quarter. This might also highlight that PC makers now have an optimistic business outlook.
AMD, Intel, and other suppliers shipped 66 million processors for client PCs during the fourth quarter of 2023, a 7% increase from the previous quarter (62 million) and a 22% rise from the year before (54 million). Despite a challenging global environment, the CPU market is showing signs of robust health.
70% of client PC CPUs sold in Q4 2023 were aimed at notebooks, which is up significantly from 63% represented by laptop CPUs in Q4 2022. Indeed, notebook PCs have been outselling desktop computers for years, so, unsurprisingly, the industry shipped more laptop-bound processors than desktop-bound CPUs. What is perhaps surprising is that the share of desktop CPUs in Q4 2022 shipments was 37%.
“Q4’s increase in client CPU shipments from last quarter is positive news in what has been depressing news in general,” said Jon Peddie, president of JPR. “The increase in upsetting news in the Middle East, combined with the ongoing war in Ukraine, the trade war with China, and the layoffs at many organizations, has been a torrent of bad news despite decreased inflation and increased GDP in the U.S. CPU shipments are showing continued gains and are a leading indicator.”
Meanwhile, integrated graphics processors (iGPUs) also grew, with shipments reaching 60 million units, up by 7% quarter-to-quarter and 18% year-over-year. Because the majority of client CPUs now feature a built-in GPU in one form or another, it is reasonable to expect shipments of iGPUs to grow along with shipments of client CPUs.
Jon Peddie Research predicts that iGPUs will dominate the PC segment, with their penetration expected to skyrocket to 98% within the next five years. This forecast may point to a future where integrated graphics become ubiquitous, though we would not expect discrete graphics cards to be extinct.
Meanwhile, the server CPU segment painted a different picture in Q4 2023, with a modest 2.8% growth from the previous quarter but a significant 26% decline year-over-year, according to JPR.
Despite these challenges, the overall positive momentum in the CPU market, as reported by Jon Peddie Research, suggests a sector that is adapting and thriving even amidst economic and geopolitical uncertainties.
Source: Recent News