TIBURON, Calif. — August 1, 2002 According
to Jon Peddie Research (JPR), graphics out ship CPUs while prices
within the PC market continue to be pressured downward. Findings
from JPR's Market Watch report indicate 30% of the computers
that ship have two graphics devices for every x86-based processor.
This, the report points out, has helped to keep the smaller suppliers
in the market.
"The maturation of the PC industry and the saturation of the desktop market has lead to increased consolidation amongst PC graphics suppliers," confirmed Lisa Epstein, senior analyst of JPR's Market Watch report. "Today there are just eight suppliers and only two with significant market share. The rest survive on the over-buy of the industry, spot availability, aggressive pricing, and niche positioning."
On the notebook side, mobile display controllers accounted for 19% of total graphics shipments in Q1'02, up from 17% in Q4'01 and from 14% in Q1'01. Most major suppliers now participate in the mobile segment, recognizing its potential for growth. Likewise, chipsets with integrated graphics are penetrating the mobile segment as suppliers increasingly target the consumer market and strive to bring down notebook ASPs.
Jon Peddie Research estimates that 40.79 million graphics devices shipped for all segments of the personal computer industry in the first quarter of 2002. This represents a 5.2% increase from 38.78 million units shipped in Q4'01 and a 2.3% increase from 39.89 million units shipped in the same period the previous year.
Of the graphics devices shipped in Q1'02, 33.06 million or 81% were desktop controllers and 7.73 million or 19% were mobile display controllers. Eight suppliers accounted for 99% of all graphics shipments during the quarter.
Overall, the industry saw good growth in shipments for Q1'02 as compared to the declines of the prior year. The outlook for Q2'02 is mixed, however, as the industry enters a traditional seasonal slowdown, and suppliers such as AMD, Apple, Intel, HP and IBM have all issued revised guidance in the face of unexpected shortfalls going forward.