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Third Quarter PC Graphics Shipments Show ATI Loses Market Share in Every Category

Posted: 12.05.06
Results of the acquisition? Overall market up 5% quarter-to-quarter

TIBURON, CA – December 5, 2006—Jon Peddie Research (JPR), the leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the third calendar quarter of 2006. Detailed third quarter results are available in the Q3 2006 edition of Jon Peddie's First Look, the firm's quarterly graphics survey. The companion 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 76 million PC graphics devices shipped from major suppliers in Q3 2006, a 5.2% increase from the prior quarter and an 11.2% increase over the same period the previous year. In the desktop graphics segment shipments increased 2% from Q2'06 to Q3'06 and shipments grew 4.7% year-over-year. Integrated desktop shipments dropped 3% sequentially (the second consecutive quarter of decline) but increased 3.3% annually. Discrete desktop shipments jumped 10.2% on a quarterly basis and grew 6.8% year-over-year.

The mobile graphics segment saw quarterly shipments rise a dramatic 13.8% and grow 30.2% year-over year. IGC shipments drove growth in the mobile market in the second quarter with a stunning 15.8% growth during the period, and discrete mobile shipments grew 7.5% during the quarter and jumped 9.3% compared to the same period the previous year.

JPR estimates that a record 22.7 million mobile graphics devices shipped in Q3'06, 17.4 million of which were integrated chipsets for notebooks. Mobile IGCs claimed a share of 76.8% in the mobile graphics market, up from 75.4% in the prior quarter and up from 72.3% in the same period a year ago. Intel led the mobile graphics market with a 51% share (down from 54%), ATI dropped to a 24% share, and Nvidia jumped with a 8% market share gain to 19% for the quarter.

In the discrete mobile segment, ATI saw shipments decline dramatically on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete mobile segment share from 37% in Q1'06 to 53% in Q3'06. ATI's segment share fell from 63% in Q2'06 to 47% in Q3'06.

JPR estimates that approximately 53 million desktop graphics devices shipped in Q3'06, 31.7 million or 59.5% of which were integrated parts. Overall, Intel held at 35% of the desktop graphics market, ATI dropped to 22%, and Nvidia grew to 25% market share. In the discrete desktop segment, Nvidia also grew, to 57% share, and ATI claimed 43% share during the period.

Intel saw a flat quarter in graphics shipments in Q3'06, but was still the largest supplier of PC graphics devices worldwide. ATI remained the second largest supplier in Q3'06 but with a 5% sequential decline in shipments and decreased market share. Nvidia, the third largest supplier in Q3'06, closed the gap with ATI 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 Q2'06 and Q3'06, of the major graphics suppliers to the PC industry..

Rank

Desktop Graphics

Q2'06 Market Share

Q3'06 Market Share

1

Intel

40%

40%

2

ATI Technologies

28%

23%

3

Nvidia

20%

22%

4

VIA Technologies

8%

10%

5

Silicon Integrated Systems (SiS)

4%

5%

6

Others

<1%

<1%