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Lenovo On The Rise
Lenovo has topped off a great 2012 with record sales figures and revenues, and claimed it took 15.6 percent of the PC market.
Lenovo is the PC maker that has bucked the industry trend of a shrinking PC market, posting faster than average industry growth for 14 consecutive quarters. All of that has left the firm announcing an 11 percent increase in second fiscal quarter sales to $8.7bn with profits of $162m, an increase of 13 percent over the same period last year.
Lenovo has managed to maintain the legendary status held by IBM’s Thinkpads and introduce its own low-cost models aimed at consumers. The firm has also been pushing smartphones in China and close to half of its revenues in its second fiscal quarter came from its home market.
Yang Yuanqing, chairman and CEO of Lenovo said, “Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader. With four years’ effort, our consumer PC business has become the world’s number one in this segment for the first time. Our smartphone business in China, which we started only two years ago, has again strengthened its number two position,”
AMD Makes More Cuts
There have been some rumors that AMD plans to drop prices on its older generation APUs as well as some AM3 Athlon II CPUs and as of yesterday, the new price list confirmed those cuts. Unfortunately the price cuts are not that impressive on the FM1 side but some AM3 Athlon II CPUs have seen a price reduction of over 30 percent.
The full list includes a total of six A-Series APUs and twelve AM3 Athlon II CPUs. The most impressive price cut in the A-Series was on the A4-3300 APU for 21.7 percent, or from US $46 down to US $36. The flagship A8-3870K got cut down by 9.9 percent while A6-3670K was cut down by far less impressive 3.7 percent.
The most impressive price cuts on the AM3 Athlon II side is on the Athlon II X4 640 and the Athlon II X2 265. The Athlon II X4 640 got cut down from US $98 to US $67, or 31.6 percent, while Athlon II X2 265 got cut down from US $69 to US $48, or 30.4 percent.
Two Athlon II CPUs, the X3 445 and the X4 638, were removed from the price list as they were most likely discontinued.
You can check out the full list and price cuts over at CPU-World.com.
Is The x86 Falling
According to Mercury Research, worldwide shipments of x86 parts saw a sharp decline in Q3. Researchers claim the drop was the biggest seen in more than a decade, 9 percent year-over-year.
Despite the drop, Intel still has something to brag about. Intel’s share hit 83.3 percent, up from 80.6 percent sequentially. AMD’s share dropped to 16.1, down from 18.8 percent, while VIA garnered a 0.6 percent share.
Mercury Research analyst Dean McCarron told PC World that both AMD and Intel experienced declines, but AMD took more of the hit than Intel.
“AMD was simply hit by what OEMs saw in the markets… and hitting the brakes,” he said.
What’s more, the third quarter is supposed to be traditionally strong for x86 chipmakers, thanks to the back-to-school shopping frenzy. However, x86 CPU shipments dropped 4 percent in Q2, followed by 9 percent in Q3. Things aren’t looking good for Q4, either.
“The key is how the macroeconomic situation is, which is not looking good for the next couple of quarters,” McCarron said. “Hopefully things will improve next year.”
Lenovo Adds Enterprise Servers
Eager to expand its horizons beyond PCs and tablets, Lenovo on Monday announced the first server from the newly created Enterprise Product Group, which deals in servers, storage, networking and software.
The ThinkServer TD330 is a tower server based on Intel’s Xeon E5-2400 processors. The server will support up to 16 processor cores and start at $929.
Lenovo last week announced the formation of the Enterprise Product Group. It is headed by Roy Guillen, vice president and general manager of the division. Guillen was previously vice president and general manager of Dell’s data center solutions (DCS) division.
Lenovo already offers low-end servers and workstations for homes and small businesses, but the new division will target small, medium-size and large enterprises. Lenovo has offered low-end servers based on Intel’s Xeon E3 and E5 processors, but the company did not respond to a request for comment on whether existing ThinkServer products would be part of the enterprise product portfolio.
“We’ve placed expanded emphasis on building our server portfolio this year, introducing products that meet the needs of all our customers — from enterprise customers to small businesses,” Guillen said in a statement.
Lenovo established itself as a PC company after it bought IBM’s PC division in 2005. Lenovo’s progress in the PC market has been rapid, with IDC placing the company as the world’s largest PC vendor for the first time in the third quarter this year. The new enterprise division will put Lenovo in competition with IBM, Hewlett-Packard and Dell, which also sell x86 servers.
Is Windows 8 In High Demand?
Microsoft Corp Chief Executive Steve Ballmer said on Monday demand for the company’s new Windows 8 operating system, that went on sale last Friday, was running at a higher rate than its last release, Windows 7.
“We’re seeing preliminary demand well above where we were with Windows 7, which is gratifying,” Ballmer said at an event launching new Windows phones.
Windows 7 is the best-selling version of Windows so far, selling more than 670 million licenses in three years since release in 2009.
“Over the weekend we saw an incredible response around the globe to Windows 8 and the Microsoft Surface,” said Ballmer, referring to Microsoft’s first own-brand tablet, designed to challenge Apple Inc’s iPad. He did not give out any sales figures.
On Friday, there were moderate lines at Microsoft’s 60 or so stores across the United States for the Surface.
Ballmer was in San Francisco speaking at an event showcasing phones running its new Windows Phone 8 software, which go on sale this weekend.
Microsoft has struggled to make headway in the smartphone market, holding just 3.5 percent of the worldwide market, compared to 68 percent for Google Inc’s Android devices and 17 percent for Apple’s iPhone, according to tech research firm IDC.
The company highlighted how the new phones make use of Microsoft’s SkyDrive cloud service, enabling users to sync and transfer music, documents and photos between PCs, tablets and the Xbox game console. Microsoft added that it now has 120,000 apps in its online store for phones, still far fewer than the number available for iPhone and Android users.
ARM Goes High-End
Nvidia is itself an ARM chip licensee that has seen significant design wins with its Tegra 3 system-on-chip (SoC) processor, however the firm doesn’t see ARM based servers being able to do heavy lifting in server tasks for two years. Sumit Gupta, GM of Nvidia’s Tesla Accelerated Computing business unit said that even with GPGPUs, ARM based servers are not yet able to provide the computing power needed to drive high performance servers.
Gupta said, “Performance of these ARM cores is still not where it needs to be for servers. It is getting there; the new ARM64 [processor] is going to get it part of the way.” However he did say that eventually ARM SoCs could hit X86-like performance levels. “One day I think ARM will at least get to similar performance levels as X86 performance. The belief is that over the next one or two years these ARM SoCs will be good enough for cloud applications and web serving. I think it will take some more time to be good enough for accelerated computing.”
As for Nvidia using its Tegra chips to push work to the firm’s GPGPUs, a scenario that would make the firm’s accountants very happy, Gupta said he was surprised at the level of interest from developers and questioned the need for powerful CPUs. “We did a small development kit called Karma that has a Tegra 3 and a Nvidia GPU, [and] I was shocked by the number of those kits that have been sold. The interest in this ARM plus GPU is far larger than even I expected. If the GPU can do dynamic parallelism, it becomes more independent than how powerful CPUs do you need? I believe the first thing that will happen is that people will start using lower performing [Intel] Xeons […] then at some point when these Atom based processors become available they might use that, and when ARM64 is available they’ll use that.”
AMD Goes Piledriver
AMD has released its Piledriver desktop
processors codenamed Vishera.
AMD showed off Vishera at IDF last month, an overclocked chip running at 5GHz. Now the company has taken the wraps off its eight-core Vishera chip, a processor that it hopes will finally bury memories of its disappointing Bulldozer Zambezi chip.
AMD’s Vishera processors will continue to use Socket AM3+, meaning it is a drop-in upgrade for those customers lumbered with Zambezi processors.
The firm announcing four models all branded with the FX moniker. The low-end Vishera chip is the quad-core FX-4300 clocked at 3.8GHz boosted up to 4.0GHz, with 4MB of Level 3 cache.
The firm has kept feature parity throughout its Vishera FX range aside from core count and total Level 3 cache. Therefore AMD’s six-core FX-6300 still sports the same 1MB of Level 2 cache per core but has a total Level 3 cache of 8MB and is clocked at 3.5GHz that can be boosted up to 4.1GHz.
AMD’s top two Vishera parts, the FX-8320 and FX-8350 sport eight cores and have 8MB of Level 3 cache. The difference between the two chips is their clock frequencies, with the FX-8320 running at 3.5GHz and boosted to 4.0GHz while the FX-8350 is clocked at 4.0GHz and is boosted to 4.2GHz.
The firm’s decision to clock its FX-8320 and FX-8350 so closely is largely academic, as all Vishera chips feature an unlocked multiplier. AMD even plays up the overclockability of Vishera and touts 5GHz as being reachable with water cooling. Insiders have even said it can reach 5GHz with strong air cooling.
As for AMD’s Piledriver architecture, the firm claims it offers improved branch prediction and improvements to Level 2 cache efficiency and scheduling. Overall the company is sticking to its longstanding line that Vishera is a 15 percent performance increase over Bulldozer, and while that might well be true, Bulldozer was so far behind its competition in single-threaded performance that a 15 percent gain is needed simply to achieve parity, let alone a lead.
AMD Adds On For GPU
AMD is offering a new games bundle with HD 7000 series cards and oddly enough, the games on offer are pretty good.
Anyone who goes for an HD 7900 series card is looking at Farcry 3, Hitman: Absolution and Sleeping Dogs. Buyers of two HD 7800 cards or a dual-headed HD7770 GHz edition can expect Farcry and Hitman, while those less fortunate, who end up with a single HD 7800 or HD 7770 series card will get just Farcry.
Still, this is pretty good value for money and the choice of titles is just as good. Bundled games tend to be somewhat older, less popular titles, so AMD’s new Never Settle bundle seems like a welcome breath of fresh air.
ARM Seeing Growth
ARM and Vivante have achieved significant market share gains in the system-on-chip (SoC) GPU market while Imagination and Qualcomm have seen their market shares fall.
ARM has been aggressively pushing its Mali GPU design for the last two years, while Vivante has ridden the surge in Chinese tablet sales, and these factors have resulted in both firms increasing market shares. Analyst outfit Jon Peddie Research claimed that ARM and Vivante scored first half 2012 SoC GPU market shares of 12.9 percent and 9.8 percent, respectively, while the SoC GPU market share leaders Imagination and Qualcomm both suffered declines.
ARM more than doubled its market share from the same period a year ago while Vivante went even better by almost quadrupling its market share. Not only were both firms claiming large pieces of the pie, Jon Peddie Research claimed the SoC GPU market had increased by 91.3 percent, suggesting that Qualcomm and Imagination are having a harder time getting new business. Jon Peddie told The INQUIRER that new vendors are entering the market, typically with lower prices to earn customers.
Nvidia’s SoC GPU operations accounted for 2.5 percent of the total smartphone and tablet market, which given that the firm doesn’t license out its GPU designs is pretty impressive. Nvidia could see its market share increase if Microsoft’s Surface tablet sells well.
Will ST Micro Break-up?
ST Microelectronics reportedly is considering breaking itself up in order to offload its system-on-chip (SoC) business.
ST Microelectronics has been losing sales as its traditional customers such as Nokia and Research in Motion struggle in the smartphone market, which has tended to favour chip vendors such as Qualcomm, Texas Instruments and Nvidia in recent years. Now Bloomberg is reporting that ST Microelectronics is considering breaking up to allow it to offload its SoC business and concentrate on the profitable analog business.
According to Bloomberg’s report the firm is mulling the division of the company into two distinct parts, the analog business and the digital business that designs chips for use in set-top boxes, televisions and smartphone handsets. ST Microelectronics’ analog business includes chips that end up in cars and white goods, areas where there is expected to be significant growth in the coming years.
ST Microelectronics moved quickly to try to put a lid on the report by denying “the existence of initiatives which can compromise the unity of the company”. Nevertheless, the firm’s stock price rose sharply on the rumour, suggesting that the market would welcome such a move and perhaps giving the firm’s board the incentive it needs to put through such a plan.