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Overall GPU Market dropped 0.5% from Q1’2008

Posted: 07.30.08
Smallest drop in Q2 shipments in eight years - where's the market slowdown?

TIBURON, CA-July 30, 2008-Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the second calendar quarter of 2008.

Traditionally, the second quarter is seasonally down in the computer industry because of summer vacations, and getting ready for back to school sales. Although this year was no different, there was the smallest drop since 2001.

7 year Average
2001
2002
2003
2004
2005
2006
2007
2008
% Growth from Q1 to Q2
-3.34
-10.75
-2.55
-5.42
-5.18
1.63
-4.22
3.13
-0.49
Table 1: Growth rates from Q1 to Q2 from 2001 to 2008

Total shipments for the quarter were 94.4 million units, down a mere 0.5% from last quarter. Compared to the same quarter last year shipments were up a heartening 16%.

In the overall graphics market (desktops and notebooks), Intel held its first place position claiming 47.3% against Nvidia's 31.4%, while AMD moved to 18.1%, as shown in Table 2.

Vendor This quarter Market share A year ago Market share Growth Yr-Yr

AMD

17.11
18.1%
15.86
19.5%
7.9%

Intel

44.67
47.3%
30.59
37.6%
46.0%

Nvidia

29.63
31.4%
26.48
32.5%
11.9%

Matrox

0.10
0.1%
0.13
0.2%
-23.1%

SiS

1.90
2.0%
2.10
2.6%
-9.5%

VIA/S3

1.00
1.1%
6.26
7.7%
-84.0%

Total

94.42
100.0%
81.42
100.0%
16.0%
Table 2: Total Graphics Chip Market shares for Q2'08

On the desktop Intel held its first place position with a 41.5% share against Nvidia's 36%, while AMD slipped to 18.3%.

The desktop saw market saw decline of 5% this quarter to 59.2 million units.

In the notebook market Intel increased its dominant position to 57.1% while Nvidia declined to 23.6% and AMD grew to 17.9% as shown in Table 3.

Notebook chips increased 8.1% quarter-to-quarter to 35.3 million units, to claim 37.4% of the market.

Vendor Q3'07 Q4'07 Q1'08 Q2'08

AMD

20.8%
18.3%
17.4%
17.9%

Intel

45.1%
53.9%
52.9%
57.1%

Nvidia

31.6%
26.2%
27.0%
23.6%
Table 3: Market share in notebook graphics chips for Q3 2007 to Q2 2008

Although the second quarter of 2008 was down as expected, it was surprising that it was such a slight decrease. Nevertheless, with the complex economic pressures building worldwide it's difficult to forecast Q3'08, but barring a major recession it looks like it could be record quarter.

"The second quarter of 2008 was just slightly seasonally down, and showed remarkable strength in the market and for the coming quarters," said Dr. Jon Peddie, president of Jon Peddie Research in Tiburon California. "Desktops declined for the third consecutive quarter, but notebooks enjoyed offsetting gains."

Peddie notes that Q3'08 will be an interesting quarter as AMD and Nvidia are not expected to release anymore new GPUs given the large number of introductions in the last two quarters.

Further, says Peddie, although there was modest overall demand last quarter, and little shift in market share between GPU vendors quarter to quarter, "we expect to see AMD make impressive gains in Q3."