The microprocessor market contracts

The big processor manufacturers predict that the market for semiconductors could shrink 30%.

I think it is a wonder that the price of processors maintained itself for so long.

Look at what the average user does with its PC: Web surfing, a bit of word processing, writing emails, the occasional flash game or youtube video. Most 3 year old PCs are already overpowered for such usage, so why would anyone buy a new PC with a more powerful processor?

I think that we are going to see a split in the PC market:

- On one hand the mainstream desktop or netbook, for such easy tasks and maybe some multimedia. Progress will be on price and portability rather than on computing performance.

- On the other hand the gaming / media creation PC where the focus will stay on performance, but which will keep a relatively high prices compared to mainstream.

With Atom Intel is growing the mainstream category on price (they sell the chip cheap, but it is cheap to produce) AND on portability rather than on price alone. Portability also give consumer an incentive to replace their "powerful enough" PC.