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Jon Peddie Research: Discrete Stalls, Notebooks Surge

Posted: 12.18.04
Intel leads in all graphics shipments followed by ATI and Nvidia

TIBURON, CA—December 18, 2004—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 third calendar quarter of 2004. Detailed third-quarter results are available in the Q3'04 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 63.19 million graphics devices shipped for all segments of the personal computer industry in the third quarter of 2004. This represents a 16.2% increase from 54.38 million units shipped in Q2'04 and a 13.0% increase from 55.91 million units shipped in the same period the previous year.

On the desktop, the trend to IGCs continues unabated. Shipments of graphics chips grew in all segments; however, the discrete segment continues to show weakness. Discrete shipments for desktops declined 19.2% in the third quarter, and discrete desktop shipments only grew 2.3%. Integrated Graphics Chipsets (IGCs), on the other hand, grew 25.1% during the third quarter of 2004.

The mobile segment continues to outshine the industry as a whole. In Q3'04 graphics shipments to the mobile market hit new records. Discrete Mobile shipments grew 13.3% compared to Q2'04, and mobile IGC shipments grew 25.8% during the period. Overall, mobile graphics shipments increased 19.5% in Q3'04 and mobile graphics held a 20% share of the total graphics market.

The AIB segment has been most impacted by the rise of IGCs. AIBs are down to 30% of the total market.

The dominance of IGCs has made Intel the top supplier of graphics devices to the computer market. However, there is room for other suppliers as indicated by an increase in shipments for all suppliers of integrated graphics including the leaders Intel, SiS, and VIA and smaller IGC suppliers ATI and Nvidia.

Nvidia has lost market share in Q3'04, ceding the second-place spot to ATI. Nvidia leads in performance parts, while ATI leads in PCI Express unit shipments.

"Overall, the graphics industry saw fairly typical performance in Q3'04 with good sequential and year-over-year growth," said Lisa Epstein, Senior Analyst at Jon Peddie Research. Epstein expects to see continued growth for the mobile market with increasing shipments of IGC devices for notebooks.