JPR Press Release—strong Q4’07 for graphics add-in board vendors

EDITOR’S NOTE: Excerpts from Jon Peddie’s AIB report are available on request.

Jon Peddie Research: strong Q4’07 for graphics add-in board vendors

TIBURON, CA—March 10th 2008—When it came to the market for graphics add-in boards, 2007 was a very mixed bag. The year started poorly with a very disappointing Q1, but then bounced up in Q2 and rebounded even more strongly in Q3. So how would the market close out the year in Q4, with another move up or a return back down?

Coming as welcome news to all with a vested interest in the market, Jon Peddie Research reports the fourth quarter was the strongest of the year. Following on the heels of the previous quarters’ upswing, Q4 saw a big jump in units, up 50.3% year-to-year and 23.0% sequentially.

Desktop AIB Market Value	Q3'06	Q4'06	Q1'07	Q2'07	Q3'07	Q4'07
Units	21.69	21.06	20.58	21.07	25.74	31.65
Growth - sequential	10.6%	-2.9%	-2.2%	2.3%	22.2%	23.0%
Growth - year-to-year	7.7%	-5.7%	-7.4%	6.9%	18.7%	50.3%
Market value ($M)	$4,975.92	$4,497.25	$3,543.75	$5,758.26	$6,617.23	$6,577.87
Growth - sequential	-4.4%	-9.6%	-21.2%	62.5%	14.9%	-0.6%
Growth - year-to-year	-13.9%	-15.1%	-39.8%	10.6%	33.0%	46.3%

Table 1 AIB market value history, by quarter

Revenue on the surface appeared very strong, up 46.3% year-to-year. But when considering that ASPs dropped 19% from Q3, vendors may have been a bit disappointed the quarter didn’t see bigger spending. JPR attributed the ASP drop both to model transitions and product turnover at market leader Nvidia, as well as consumers’ holiday shopping, which tends to focus more dollars on lower-priced products.

Among vendors, Nvidia increased its lead in market share in Q4, now responsible for 71% of all units shipped, up from 64% the previous quarter.

Pricing and Availability
The Q4’07 edition of Jon Peddie’s Market AIB Report is available now in both electronic and hard copy editions. The report provides an in-depth look at the PC graphics market and includes unit shipment and segment market share data, and trend analysis.

The annual subscription price for Jon Peddie’s AIB report is $6,000 including four quarterly issues, and single issues are available for $2,000.

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 AIB report are quarterly reports focused on the market activity of PC graphics controllers for mobile and desktop computing.

Press Release for Immediate Release

Jon Peddie Research: strong Q4’07 for graphics add-in board vendors