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PC Processors to the Rescue!

I've been scratching my head lately as I've compared the government's statistics for third quarter GDP growth against the corporate earnings of the IT titans. The U.S. GDP is supposed to be up 3.5 percent for Q3, while Microsoft, Tech Data and Ingram Micro all reported double-digit declines in revenues over roughly the same period.

But finally, some positive news out of the tech sector. IDC says worldwide PC microprocessor shipments in Q3 "rose substantially and to all-time record levels for a single quarter." The bounce in shipments is 23 percent quarter over quarter. Revenues for the same period are up 14 percent.

The story is more subtle than a 1:1 relationship with the U.S. economy. The chip growth doesn't actually line up with the U.S. economy, which IDC notes is still hamstrung by housing foreclosures and rising job losses. Many of these chips are being manufactured in China for sale in netbooks there, and IDC warns that the Chinese market is opaque -- inventory can hide in lots of places. But let's keep our fingers crossed that this could be the start of something good.

Posted by Scott Bekker on 11/10/2009 at 1:23 PM


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