End to Intel chip shortage in sight - analyst

Intel and AMD set to go head to head in H2 this year, Canalys says

The PC market will return to growth in the second half of this year as the Intel processor shortage begins to ease, according to Canalys.

The analyst claims that PC shipments will rise 0.4 per cent year on year in H2 this year, but struggles with components supplies in H1 will result in an overall decline this year.

Canalys added that 57 per cent of the 270 channel partners it surveyed expect a "medium to severe" impact to their business this year as a result of the Intel shortages.

Analyst Ishan Dutt said: "Problems with Intel processor supplies are set to ease from Q3 2019, providing relief to the market in the second half of the year and setting the stage for a tussle between Intel and AMD."

Canalys said that Intel's struggles have opened the door to competitor AMD, which has targeted the low end of the market as Intel focused on premium devices.

AMD has undergone a resurgence over recent months, with its share price more than doubling in the last 12 months.

"The next few months will determine AMD's long-term success as its reliance on Intel shortages comes to an end," Dutt added.

"In countries where it has enjoyed recent share gains it will be vital to build up stronger retails, sales and support capability to cement its position."

Canalys added that PC vendors are "refocusing their efforts to seek new sources of growth".

The analyst claimed that Dell is making "significant investments" in gaining SMB customers, specifically those looking to upgrade to Windows 10.