Market watcher iSuppli recently forecasted the PC market will be essentially flat in 2009. International Data Corp. said recently that CPU shipments were down 17 percent in the last quarter of 2008 and projected the decline to last through the first half of 2009.

Storage and memory sectors still look bleak. The firm predicted more cuts and consolidation will come in the hard disk market before product prices improve late this year. Similarly, it estimates the DRAM market will not see a balance of supply and demand until the end of the year.

In this climate, Intel is positioning itself for greater growth outside the depressed PC market, said the analysts. Analyst suggested long term revenues from the deal could be significant for Intel because it has not penetrated many large chip markets including mobile application processors.

By: DocMemory
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