News

Jon Peddie Research: PC Graphics Shipments Seasonally Down,

Mobile Graphics Exhibit Relative Strength, ATI and Nvidia Lose Ground

Robert Dow

TIBURON, CA—August 3, 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 second calendar quarter of 2004. Detailed second-quarter results
are available in the Q2’04 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 approximately 54.3 million PC graphics
devices shipped from eight suppliers in Q2’04, a 5.2% decline
from the previous quarter and a 12.8% increase over the same period
the previous year. The desktop graphics segment saw a 6.6% decline
in quarterly shipments but achieved 10.6% growth year-over-year. Within
the desktop segment, discrete controller shipments declined 19.2%
sequentially while integrated graphics shipments increased 5.5% on
a quarterly basis. Growth in the desktop IGC market was led by Intel
and VIA Technologies.

Approximately 10.5 million mobile graphics processors shipped from
six suppliers in Q2’04, up 1% from the previous quarter and up 23.1%
year-over-year. Shipments of integrated graphics chipsets for notebooks
slightly outpaced those of discrete (stand-alone) mobile graphics
processors during the period, but discrete controllers displayed sequential
growth of 2.7% while IGC shipments remained essentially flat as compared
to Q1’04. Intel was the only supplier to see its shipments of IGCs
for notebooks increase on either a sequential or annual basis in Q2’04.

“Quarterly shipment declines in the second quarter are to be expected
in the graphics industry; however, year-over-year growth in Q2’04
was fairly robust in all segments except for the discrete desktop
market, where shipments increased just 2.7%,” said Lisa Epstein, a
senior analyst at Jon Peddie Research. “The small window that opened
in Q1’04 for discrete desktop graphics swiftly closed in Q2’04 as
Intel started shipping its new Grantsdale ICG. When Intel ships a
new IGC, ATI and Nvidia immediately lose ground,” Epstein concluded.

Intel saw a 7.9% quarterly increase in graphics shipments in Q2’04,
was the largest supplier of PC graphics devices worldwide, and claimed
an increased share of the total graphics market. Nvidia was the second
largest supplier in Q2’04 but with reduced shipments and share
of the total graphics market. ATI was the third largest supplier in
Q2’04, also with reduced shipments and share. The following
table lists the ranking and relative market share, based on unit shipments
in Q1’04 and Q2’04, of the eight major graphics suppliers
to the PC industry.