Q3 PC graphics shipments rise while ATI loses market share in every category
If you follow the computer graphics industry, then you already know about Jon Peddie Research. These guys have been following the market for many years now – always providing research notes on what’s hot and how the market is doing quarter by quarter etc.
JPR had some interesting findings for Q3 of this year. The overall graphics market is up 5 percent for the quarter yet ATI saw drops in market share for every graphics category out there – from mobile graphics to desktop graphics to integrated graphics.
Case in point – for desktop graphics devices, Intel’s market share held at 35 % while NVIDIA’s market share grew to 25 percent. That meant that ATI’s market share actually fell to 22 percent of the overal market.
The overall numbers quarter over quarter are even more interesting.
Intel held steady at 40 percent while ATI dropped from 28 percen tto 23 percnet. Meanwhile, NVIDIA rose from 20 percent to 22 percent of the graphics market share. Could there be some relationship to the AMD aquisition of ATI? Could it be because of NVIDIA’s recent new graphics products?
You’ll have to buy the full report for more info but here’s the link to the press release.
Jon Peddie Research: Third Quarter PC Graphics Shipments Show ATI Loses Market Share in Every Category — Results of the Acquisition?
Overall Market Up 5% Quarter-to-Quarter
TIBURON, Calif. –(Business Wire)– Dec. 6, 2006 Jon Peddie Research (JPR), the leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the third calendar quarter of 2006. Detailed second quarter results are available in the Q3 2006 edition of Jon Peddie’s First Look, the firm’s quarterly graphics survey. The companion Market Watch provides an in-depth look at the PC graphics market and includes unit shipment and segment market share data, trend analysis, shipment forecasts, and profiles of major suppliers.
Jon Peddie Research estimates that approximately 76 million PC graphics devices shipped from major suppliers in Q3 2006, a 5.2% increase from the prior quarter and an 11.2% increase over the same period the previous year. The desktop graphics segment saw shipments increased 2% from Q2’06 to Q3’06 and shipments grew 4.7% year-over-year. Integrated desktop shipments dropped 3% sequentially (the second consecutive quarter of decline) but increased 3.3% annually. Discrete desktop shipments jumped 10.2% on a quarterly basis and grew 6.8% year-over-year.
The mobile graphics segment saw quarterly shipments rise a dramatic 13.8% and grow 30.2% year-over year. IGC shipments drove growth in the mobile market in the second quarter with a stunning 15.8% growth during the period, and discrete mobile shipments grew 7.5% during the quarter and jumped 9.3% compared to the same period the previous year.
JPR estimates that a record 22.7 million mobile graphics devices shipped in Q3’06, 17.4 million of which were integrated chipsets for notebooks. Mobile IGCs claimed a share of 76.8% in the mobile graphics market, up from 75.4% in the prior quarter and up from 72.3% in the same period a year ago. Intel led the mobile graphics market with a 51% share (down from 54%), ATI dropped to a 24% share, and Nvidia jumped with a 8% market share gain to 19% for the quarter.
In the discrete mobile segment, ATI saw shipments decline dramatically on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete mobile segment share from 37% in Q1’06 to 53% in Q3’06. ATI’s segment share fell from 63% in Q2’06 to 47% in Q3’06.
JPR estimates that approximately 53 million desktop graphics devices shipped in Q3’06, 31.7 million or 59.5% of which were integrated parts. Overall, Intel held at 35% of the desktop graphics market, ATI dropped to 22%, and Nvidia grew to 25% market share. In the discrete desktop segment, Nvidia also grew, to 57% share and ATI claimed 43% share during the period.
Intel saw a flat quarter in graphics shipments in Q3’06, but was still the largest supplier of PC graphics devices worldwide. ATI remained the second largest supplier in Q3’06 but with a 5% sequential decline in shipments and decreased market share. Nvidia, the third largest supplier in Q3’06, closed the gap with ATI with a 2.0% sequential increase in shipments and increased market share. The following table lists the ranking and relative market share, based on unit shipments in Q2’06 and Q3’06, of the major graphics suppliers to the PC industry. -0-
Rank Graphics Supplier Q2'06 Market Share Q3'06 Market Share
1 Intel 40% 40%
2 ATI Technologies 28% 23%
3 Nvidia 20% 22%
4 VIA Technologies 8% 10%
5 Silicon Integrated 4% 5%
Systems (SiS)
6 Others less than 1% less than 1%
Pricing and Availability
The Q2’06 edition of Jon Peddie’s Market Watch will be available in August 2006 in both electronic and hard copy editions. A condensed version of Market Watch, entitled First Look, is available now. The annual subscription price for Jon Peddie’s Market Watch is $2,750 and includes four quarterly issues. The annual subscription price for First Look is $1,000. Full subscribers to JPR services receive Tech Watch, the company’s bi-weekly report and a copy of Market Watch as a part of their subscription. For information about purchasing Market Watch, please call 415/435-9368 or visit the Jon Peddie Research Web site at http://www.jonpeddie.com.
About Jon Peddie Research
Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie’s Market Watch and First Look are quarterly reports focused on the market activity of PC graphics controllers for mobile and desktop computing.
EDITOR’S NOTE: Excerpts from Jon Peddie’s First Look are available on request.
Jon Peddie Research Jon Peddie, 415-435-9368 jon@jonpeddie.com Lisa Epstein, 425-785-4630 lisa@jonpeddie.com or Pat Meier Associates Pat Meier-Johnson, 415-389-1700 patmeier@patmeier.com
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