AMD and Intel Worried About PC Market Decline

This week, OMG and Inteltwo of the largest manufacturers of processors and video cards, expressed concern about the current scenario of the PC market. Computer sales decline dramatically each quarter. And the two companies consider the scenario as delicate, admitting that there is little room for growth in the coming months.

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Intel and AMD pessimistic forecasts

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AMD had a 2% drop on the stock market

After explaining the situation to your investors, AMD shares on the stock exchange are down more than 2% this Wednesday (3). This is nothing more than a reflection of shareholder concern.

In addition, the company’s forecasts were lower than expected for the third quarter of 2022. In the months of August, September and October, AMD projects a sales volume between US$ 6.5 billion and US$ 6.9 billion. The profit margin, in turn, should be at 54%. Analysts estimated a profit of 54.2%. Therefore, a little above the projections made by AMD.

Intel CEO Par Gelsinger gave an interview to Yahoo Finance and said that the Q3 of 2022 will be “rock bottom” for the PC market. In addition, the executive said he believes the PC market will still have a 10% drop by the end of the year. This is taking into account the global market. But there is light at the end of the tunnel. The Executive believes that the holiday season will help increase sales in the fourth quarter of the year.

IDC says the situation is not that bad

O International Data Corporation (IDC), a traditional institute that carries out surveys in several markets, agrees that the situation is bad. However, it is not a scorched earth scenario. In a survey dating back to July 11, the company revealed that Worldwide computer orders dropped 15.3%. Thus, in the second quarter of 2022, 71.3 million units were sold.

This is the second consecutive quarter where there is a decline in computer sales. However, if we compare with the numbers from the beginning of the pandemic, which was in the first quarter of 2020, they are not so far apart. Between January, February and March 2020, 74.3 million computers were sold. That is, a difference of only 3 million units in the period of 2 years.

And if we further increase the clipping, we will see that the current situation is better than in pre-pandemic quarters. The second quarter of 2019 ended with 65.1 million computers sold. And the second quarter of 2018 showed even lower numbers, at 62.1 million units. In other words, it’s bad, but it used to be worse.

In Brazil, the scenario is one of growth. In 2020, the year in which the pandemic affected the economy more strongly, Brazil had a 12.6% drop in computer sales. But then he started to recover. In the first quarter of 2021, the PC segment grew by almost 20% in Brazil. In January 2022 the growth trend continued and not first quarter of 2022 there was a growth of 6%. All data are from IDC, as you can see from the links in this paragraph.

Therefore, in some markets the situation is bad. But in other countries, such as Brazil, the sale of computers remains high.

Sources: Yahoo Finance and CDI

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