Slow Turnaround Predicted For Compute Platforms Sales

Compiled ByTraci Purdum Sales of compute platforms -- including those for mobile, handheld and desktop personal computers; midrange systems; mainframes and supercomputers; workstations; Internet appliances and motherboards -- won't mimic past performances of double-digit growth, according to El Segundo, Calif.-based iSuppli Corp.'s iSuppli Market Intelligence Services. Indeed, iSuppli's report "A Future for Standard Logic Components?" forecasts that revenues from compute platforms will decrease by 0.6% for the year, from about $144 billion to $143 billion. And while semiconductor content in these systems will grow about 3% in 2002, overall growth for semiconductor revenues will be less than 9%. "While unit shipments will increase in virtually in every segment of the compute platform market except mainframes and supercomputers, ASPs will be decreasing during the period to limit any significant growth in revenues and semiconductor consumptions," says Joe D'Elia, a principal analyst for iSuppli. However, D'Elia does note some good news for the industry. He expects most of the compute platform industry segments to return to double-digit growth in 2003-2004.