Intel kept hold of the top spot in the graphics chips market, while AMD showed significant gains in the second quarter, according to Jon Peddie Research. Nvidia saw double-digit declines in most segments.
Intel kept the top spot in the list of the world's biggest PC graphics chip
vendors, and Advanced Micro Devices saw huge gains through its ATI
business, according to a report by Jon Peddie Research.
All that came at the expense of Nvidia, which saw its business
tail off in practically every segment, according to the report released July
The report came two days after Nvidia officials issued a
warning about weak second-quarter earnings, which reportedly added fuel to
worries of a consumer slowdown in PC purchases in the second half of the year,
thanks to ongoing economic worries and the shaky financial news coming out of Europe.
Jon Peddie Research reported that in the second quarter overall
graphics shipments grew 4.3 percent over the previous quarter, but were about
the same as the same three months last year. For the first half of 2010,
shipments were up 38.6 percent.
The rapid growth in the laptop market was not seen in the
desktop discrete GPU space, which saw a 21.4 percent drop from the first
Intel saw its market share grow to 54.9 percent, up from 49.7
percent in the first quarter, and unit shipments grow 15.3 percent, according
to Jon Peddie Research's numbers. Intel was helped by the release of its
Clarkdale processors in January and continued sales of Atom processor for
netbooks. Strong notebook sales also buoyed Intel's position.
AMD saw shipments jump 32.6
percent over the same period last year, and 19.1 percent over the first period,
giving the vendor a 24.4 percent market share.
AMD had the largest gains in
both discrete and integrated desktop graphics products.
AMD has aggressively pursued
the graphics space since buying ATI in 2006
for $5.4 billion. In announcing second-quarter financial results, AMD
officials said graphics revenue
grew 8 percent over the first quarter, and
87 percent over the same period last year, driven by record GPU shipments. Also
in the second quarter, AMD demonstrated its first Fusion APUs (Accelerated
Processing Units), "Ontario"
and "Llano," at Computex. The Fusion APUs bring computing and
graphics capabilities onto a single piece of silicon.
AMD is expected to release
the 40-nm Ontario in the fourth
quarter, with systems powered by the APU to
come out in early 2011. Llano will come out in 2011.
In the second quarter, it was Nvidia that struggled the most.
The GPU maker saw double-digit losses across every segment except for
notebooks, where the company grew shipments 10 percent over the first quarter.
Nvidia officials announced July 28 that they expect revenues in
their fiscal second quarter, which ends July 31, to come in at $800 million to
$820 million, down from an earlier projection of $950 million to $970 million.
Nvidia is scheduled to announce second-quarter earnings Aug.
In announcing the downgraded projections, Nvidia officials said
the company was hurt by a "greater-than-expected shift" away from
discrete GPUs to lower-priced GPUs and PCs with integrated graphics. That shift
occurred after memory costs increased and the European and Chinese markets
showed economic weakness, according to Jon Peddie Research.