Jon Peddie Research: Second Quarter PC Graphics Shipments Down 4.6% Sequentially, Rise 16.6% Year-Over-Year

Notebook Graphics Shipments Set a Record, Grow Nearly 32% Year-Over-Year

TIBURON, CA—July 31, 2006—Jon Peddie Research (JPR), a leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the second calendar quarter of 2006. Detailed second quarter results are available in the Q2’06 edition of Jon Peddie’s Market Watch, the firm’s quarterly graphics survey. 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 71.4 million PC graphics devices shipped from major suppliers in Q2’06, a 4.6% decline from the prior quarter and a 16.6% increase over the same period the previous year. The desktop graphics segment saw shipments fall 7.0% from Q1’06 to Q2’06 but shipments grew 11.6% year-over-year. Integrated desktop shipments dropped 7.1% sequentially but increased 14.7% annually. Discrete desktop shipments fell 6.8% on a quarterly basis and grew 7.0% year-over-year.

The mobile graphics segment saw quarterly shipments rise 2.2% and grow 31.9% year-over year. IGC shipments drove growth in the mobile market in the second quarter and integrated mobile was the only graphics segment to exhibit sequential growth during the period. Integrated mobile shipments rose 4.2% sequentially and grew 47.1% annually. Discrete mobile shipments fell 3.5% during the quarter and grew just 0.8% compared to the same period the previous year.

JPR estimates that a record 19.6 million mobile graphics devices shipped in Q2’06, 14.7 million of which were integrated chipsets for notebooks. Mobile IGCs claimed share of 75.0% in the mobile graphics market, up from 73.5% share in the prior quarter and up from 67.3% share in the same period a year ago. Intel led the mobile graphics market with 54.9% share, ATI held 31.0% share, and Nvidia followed with 10.9% market share. In the discrete mobile segment, ATI saw shipments decline on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete mobile segment share from 25.0% in Q1’06 to 36.7% in Q2’06. ATI’s segment share fell from 74.6% in Q1’06 to 63.1% in Q2’06.

JPR estimates that approximately 51.7 million desktop graphics devices shipped in Q2’06, 32.1 million or 62.1% of which were integrated parts. Overall, Intel claimed 34.8% of the desktop graphics market, ATI held 26.3%, and Nvidia followed with 23.9% market share. In the discrete desktop segment, Nvidia held 51.5% share and ATI claimed 47.9% share during the period.

Intel saw a 1.5% sequential decline in graphics shipments in Q2’06, was the largest supplier of PC graphics devices worldwide, and claimed an increased share of the total graphics market during the quarter. ATI remained the second largest supplier in Q2’06 but with an 8.4% sequential decline in shipments and decreased market share. Nvidia was the third largest supplier in Q2’06, 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 Q1’06 and Q2’06, of the major graphics suppliers to the PC industry.

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 $3,000 and includes four quarterly issues. The annual subscription price for First Look is $1,500 (four issues per year). 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, call 415/435-9368.