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IDC: Penryn set to ride expansion of developed markets like the UK


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Constantly analysing worldwide system sales, IDC's reports help global suppliers understand what the >300 million unit market is doing and where to focus their efforts. spoke exclusively with Eszter Morvay, Senior Research Analyst for IDC

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HEXUS Forums :: 6 Comments

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Local system builders are always worrying that the market is dying and that there are no sales to be had…

…whereas the actual market data points to a fantastic expansion in the market - everywhere from India to the former Russian states and Africa…

…but the REAL SURPRISE is that the UK market - already well developed - enjoyed a big increase in 2007 - and is set for more in 2008

What do the UK integrators and resellers need to do to capitalise on this huge opportunity we wonder ?

I was speaking to a chap that has run a pc shop near Manchester for nearly 20 years, and as the lady in the video pointed out, the big globals are being very aggressive with their marketing and pricing. With the percentage markup on the kit the shop buys, he really needs to turn into a large volume box shifter to justify the business. Given the speed of change in the market its very hard for any of these small businesses to keep stock. In fact I have noticed more of the smaller etailers and pc shops linking their stock system to the suppliers stock system.

Having said that , if the notebook market is growing as fast as it is , it may be easier to keep a stock of those ready to go, rather than place an order will say Dell and wait a week, so this could be an area where the small business could exploit

The chap above I was talking about,has expanded into bicycles and does better from that than the pcs in terms of putting food on the table. I did ask him recently before the Eee pc came out if he was getting them in and he wasn,t told about it by Asus and by the time came he couldn't get them as they had all sold.

In many ways it is like a lot of suppliers I deal with in my trade, they would sooner deal with a few big resellers, than a lot of little ones, because its easier, they can employ less staff to deal with the resellers.

Dell Acer HP etc, thats where the money is made in volume, leaving the small guys to scrabble around in the remaining 30% of the business left as suggested in the video.

The one thing that is evident is that as the business is more global, the support side could be a growth area for the local pc shops to tap into, but this could only be done with the aid on the large oems's.

It seems to me people are quite happy to buy a pc or laptop, and if it does have a problem they are prepared to wait the time for it to be sent off and repaired. So that suggest to me the oem,s dont see the need to have local service centres and the additional costs this may bring, but it could also be a great selling point too, to be able to say we have repair centres in your area.

It was interesting to see the continued growth in notebook sales, and its fun to ponder where it will be in say 10 years.

I personally think the likes of the Eeepc is something we will see a lot more of , portable and getting quicker, but the killer would be the ability to output to your large tv screen or the likes in your house without wires for the usual stuff like surfing gaming etc when at home , then stick it in your pocket when you go out. I suppose thats why a lot of companies are keen to get everything online, Im thinking cloud and google apps here.

Nice lady too :)
Nice lady too :)
A wonderfully insightful post :cool:
The situation for Intel could be even stronger than has been suggested

There is a lot of speculation that Intel may move the actual volume shipment date for Penryn - followed by a bunch of wild ‘they must have a problem’ stories

Having worked in the semi-conductor industry for years, I can tell you that the biggest pain in the butt is launching a new product - when the channel is still CHOKED with the old one

ATI took pressure off nVidia (at the very high end) with the 2900 series etc - allowing nVidia to carry on selling 8800 products to this day

POTENTIALLY, by not having a PHENOMinal challenge to the Intel parts, AMD are - effectively - allowing Intel the chance to run all of the channel stock down to (near) zero - WITHOUT having to offer huge discounts in order to do so

Financially, this is a frightening prospect for AMD

Imagine working out the average value of your wafers (and, therefore your CPUs), across their ‘main life span’…

e.g. lower yields etc at the start - mainstream volume production in the middle - end of life while you run down your production and heavily discount the older parts while transitioning to new technology

Now imagine that the ‘revenue curve’ does NOT tail off - and that you can command the mainstream price until the end of the product lifecycle


I could be miles out with this analysis - and stand to be corrected…

…but i don't think so

Will be interesting to see Intel's results on the current quarters - not only in terms of overall market share - but also ASP and margin JUST BEFORE Penryn comes in
Nice lady too :)


Was I the only one that was waiting for a moment like 2mins 49sec to find out she has no ring on her hand? :devilish:

I'll leave the poor lady alone now…