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Processor and Microsoft OS Upgrades to Bolster Desktop PC Shipments in 2Q 2014, According to MIC
May 08, 2014


Taiwanese desktop PC shipments totaled about 15.8 million units in the first quarter of 2014, down 4.9% sequentially but up 10.4% year-on-year, according to MIC (Market Intelligence & Consulting Institute). The sequential decline was ascribed mainly to advanced pull-in demand in the fourth quarter of 2013 in anticipated of impacts brought by Chinese Lunar New Year like fewer working days and labor shortages. Therefore, ODMs (Original Design Manufacturers) were conservative about replenishing inventories in the first quarter, focusing on inventory clearance instead. The industry's year-on-year growth was fueled mainly by the end of support for Windows XP. As a result, the replacement demand for commercial desktop PCs took place in the second half of 2013 and is continuing in 2014.

Taiwanese Desktop PC Shipment Volume, 1Q 2012 – 3Q 2014

Source: MIC, May 2014

In the second quarter of 2014, Taiwanese desktop PC shipments are forecast to grow 1.2% sequentially to 16.1 million units. In addition to AMD's Socket AM1 "Kabini" and "Kaveri" APUs, more processors are set to hit the market, like Intel's Haswell Refresh and more AMD's "Kaveri" APUs (Accelerated Processing Units). "Another important factor to uphold desktop PC shipments in the second half of 2014 will be Microsoft's Windows 8.1 Update," said Evelyn Chang, an MIC analyst. Unveiled at Microsoft Build Developer Conference on April 3, 2014, Windows 8.1 Update is likely to gain higher reception than its antecedent Windows 8.1 after all familiar features are added back in. Chang said that effects of those two factors on desktop PC shipments will be felt starting in the second half of 2014.

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Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry.