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Jon Peddie Research: Q3 PC Desktop Graphics Reach $1.9B

Integrated Graphics Achieve Market Share Parity with Performance Category (November 09, 2005)

Jon Peddie Research (JPR), a leading research and consulting firm for graphics and multimedia,  has just completed its measurement of the value of the desktop graphics  market and broken it out into five segments.

 

Figure 1: Desktop Graphics Market Value


As the chart indicates, in Q3 of 2005, the desktop graphics market was worth $1.93 billion dollars, which if averaged out for the year, would make the market worth almost $8 billion dollars.

?ATI and Nvidia continued to dominate the desktop GPU market in the third quarter, but with a shift in relative positions, said Lisa Epstein, a senior analyst at Jon Peddie Research. ?Nvidia had trailed ATI in the discrete desktop segment for four consecutive quarters. However, with the launch of its flagship GeForce 7 series and the continued success of the GeForce 6 series, Nvidia was able to regain lost segment share in Q305. The delays ATI experienced in bringing its latest generation GPU technology to market also assisted Nvidia in growing share during the period, Epstein concluded.

JPR estimates that approximately 50.9 million desktop graphics devices shipped in Q305, 30.7 million or 60.3% of which were integrated parts. Overall, Intel claimed 36.9% of the desktop graphics market, ATI held 23.6%, and Nvidia held 22.0% market share. While Intel was the largest supplier of desktop graphics during the period, the companys segment market share declined sequentially. Meanwhile, ATIs lead over Nvidia in the desktop segment narrowed as compared to the prior quarter. In Q305, ATIs desktop graphics shipments grew 7.6% sequentially while Nvidias desktop shipments grew 28.3%. Nvidias gains on the desktop side came from its standalone GPU products, shipments of which increased 20.0% during the quarter, as well as from its line of integrated graphics devices, shipments of which increased more than three-fold during the period. On the discrete side, Nvidia grew its segment share from 46.3% in Q205 to 50.4% in Q305. ATIs discrete desktop share fell from 51.8% in Q205 to 47.9% in Q305.

Pricing and Availability
The Q305 edition of Jon Peddies Market Watch will be available in November 2005 in both electronic and hard copy editions. A condensed version of Market Watch, entitled First Look, is available now. The annual subscription price for Jon Peddies Market Watch is $2,750 and includes four quarterly issues. The annual subscription price for First Look is $1,000. Full subscribers to JPR services receive Tech Watch, the companys bi-weekly report and a copy of Market Watch as a part of their subscription. For information about purchasing Market Watch, please call 415/435-9368 or visit the Jon Peddie Research Web site at www.jonpeddie.com.

About Jon Peddie Research
Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddies Market Watch and First Look are quarterly reports focused on the market activity of PC graphics controllers for mobile and desktop computing.

 


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