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Nvidia raises share in graphics chip rankings

Posted by iTech - 2005-11-02

LONDON — In the third quarter NVidia was able to raise its share of the market for graphics chips but it could not overturn the pecking order which sees Intel and ATI as the top two ranked graphics chips suppliers, according to Jon Peddie Research (JPR), a consulting firm specializing in graphics and multimedia.

Overall approximately 68.4 million PC graphics devices shipped from eight suppliers in the third quarter of 2005, an 11.6 percent increase over the previous quarter and an 8.2 percent increase over the same period the previous year, JPR (Tiburon, Calif.) said.

The desktop graphics segment saw quarterly growth of 9.8 percent with integrated desktop shipments increasing 9.4 percent sequentially and discrete desktop shipments grew 10.3 percent on a quarterly basis. The mobile graphics segment saw quarterly growth of 17.1 percent with integrated mobile shipments increasing 25.8 percent sequentially. Discrete mobile shipments were essentially flat during the period. Peddie said.

JPR estimated that approximately 17.4 million mobile graphics devices shipped in the third quarter of 2005, of which 12.6 million were integrated chipsets for notebooks.

Mobile integrated graphic chipsets (IGCs) shipped in record numbers during the period and also claimed record share of 72.4 percent in the mobile graphics market, up from 67.2 percent share in the prior quarter and 52.4 percent share in the same period a year ago.

ATI Technologies Inc. helped drive growth in the mobile IGC segment during the quarter with shipments of its Radeon Xpress 200M solution, according to Peddie. The company saw a 40.0 percent sequential increase in mobile IGC shipments during the quarter. Intel grew its mobile IGC shipments 25.8 percent during the quarter and remained the largest graphics supplier to the mobile PC market.

JPR estimates that approximately 50.9 million desktop graphics devices shipped in the third quarter of 2005, of which 30.7 million or 60.3 percent were integrated parts. Overall, Intel claimed 36.9 percent of the desktop graphics market, ATI held 23.6 percent, and Nvidia Corp. held 22.0 percent market share.

While Intel was the largest supplier of desktop graphics during the period, the company’s segment market share declined sequentially, according to JPR. Meanwhile, ATI’s lead over Nvidia in the desktop segment narrowed as compared to the prior quarter.

In Q3 2005 ATI’s desktop graphics shipments grew 7.6 percent sequentially while Nvidia’s desktop shipments grew 28.3 percent. Nvidia’s gains on the desktop side came from its standalone GPU products, shipments of which increased 20.0 percent during the quarter, as well as from its line of integrated graphics devices, shipments of which increased more than three-fold during the period.

On the discrete side, Nvidia grew its segment share from 46.3 percent in Q2 2005 to 50.4 percent in Q3 2005. ATI’s discrete desktop share fell from 51.8 percent in Q2 2005 to 47.9 percent in Q3 2005.

“ATI and Nvidia continued to dominate the desktop GPU market in the third quarter, but with a shift in relative positions,” said Lisa Epstein, a senior analyst at Jon Peddie Research, in a statement. “Nvidia had trailed ATI in the discrete desktop segment for four consecutive quarters. However, with the launch of its flagship GeForce 7 series and the continued success of the GeForce 6 series, Nvidia was able to regain lost segment share in Q3’05. The delays ATI experienced in bringing its latest generation GPU technology to market also assisted Nvidia in growing share during the period,” Epstein concluded.

Intel saw a 6.4 percent sequential increase in graphics shipments in Q3 2005 and was the largest supplier of PC graphics devices worldwide, but the company’s share of the total graphics market declined slightly during the period. ATI remained the second largest supplier in Q3 2005 with an 8.8 percent sequential increase in shipments and essentially flat market share. Nvidia was the third largest supplier in Q3’05, with a 24.9 percent sequential increase in shipments and increased market share.

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