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Strong Second Quarter Graphics Chip Sales Indicate PC Recovery

Sales of graphics chips in the second quarter of 2009 indicate a recovery of the personal computer industry in the second half of this year according to market research.

Considered a leading indicator in the PC industry, more graphics chip sales mean more manufacturers like Dell are planning on building more computers. Hardware is manufactured and assembled before being sold to the end customer.

According to John Peddie Research, shipments of graphics chips rose over 31.29% over the first quarter to 98.3 million units. Data indicates computer makers depleted their inventories in the second half of 2008 due to the effects of the recession.

It’s not expected for graphics chip sales to return to 2008 levels until next year. But many factors are combining to suggest a recovery in the PC market is in the offing. It’s back-to-school time across the country. Both Apple and Microsoft are planning to release new operating systems in the near future. AMD and Nvidia are aggressively pricing higher performing 40-nanometer chips along with spiked demand due to depleted inventories.

All top-three chip makers saw their market share increase in Q2, with AMD seeing the largest.

Stay tuned to the information technology blog to monitor events in the personal computer and information technology industries and their role in any economic recovery.

Filed Under: Microsoft Tagged With: tech news

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