High-end computers to drive microprocessor growth
By James Carbone -- Purchasing, 5/21/1998
The worldwide x86 microprocessor market will grow 16% in 1998, but processors used for desktop computers will see only 3% growth, according to Dataquest. Most growth will occur in chips or workstations and mid-range systems.In 1997, desktop systems revenue accounted for nearly 60% of the total x86 computational microprocessor market, but desktop x86 microprocessors are projected to account for 39% of the total market by 2002.
"Even with the continued strong demand for all computational market segments, revenue growth in the desktop arena will slow because of price erosion resulting from system pricing pressures and a shifting system price mix," says Nathan Brookwood, principal analyst for Dataquest's Personal Computer Semiconductor and Applications Worldwide program.
Intel will continue to dominate the x86 microprocessor market. Although the company will see slower growth in the low-end market, Intel is positioned to do well in the mid-range and workstation segments. "Much of the growth that once would have accrued to high-end PCs now shows up in the workstation category, given the ease with which users can integrate NT-based x86 workstations into traditional personal-computer networks," says Brookwood.
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