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Wednesday, May 02, 2007
Nvidia Leaps to First Place in Desktop Graphics Chips, Displacing Intel

Jon Peddie Research today announced estimated graphics shipments and supplier market share for the first calendar quarter of 2007.

Q1'07 was disappointing overall in terms of graphics chip shipments, but some suppliers have reason to celebrate. "The Vista effect hasn't clicked in yet for the AIB suppliers, although Microsoft reports that shipments of Vista are meeting their expectations," Jon Peddie said.

Jon Peddie Research estimates that the overall shipment of graphics chips dropped 5.5% quarter-to-quarter. Overall, shipments of graphics devices increased 5.3% year over year to reach 78.8 million graphics chips shipped in Q1'07.

The mobile graphics segment which has been the star performer delivered 23.9 million units, slipping 7.2% quarter-to-quarter, and grew a healthy 24.6% year-to-year.

The desktop graphics segment saw shipments decline by 4.8% quarter to quarter to 54.8 million units, and it declined 1.4% year-to-year, but Nvidia took first place in market share.

JPR estimates that 23.9 million mobile graphics devices shipped in Q1'07, 18.74 million of which were integrated chipsets (IGPs) for notebooks. Mobile IGPs claimed a commanding share of 78.2% in the mobile graphics market, up 2.5% in market share from the prior quarter and 6.3% from the same period a year ago.

Intel led the mobile graphics market with a 55% share (up from 50%), AMD lost 0.2% to a 23.2% share, and Nvidia slipped to 20% (from 22.9%) market share gain for the quarter. SiS and VIA saw declines in market share.

In the discrete mobile segment, AMD saw shipments decline on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew its discrete mobile segment share from 59.1% in Q4'06 to 60.3% in Q1'07. AMD's segment share fell from 40.9% in Q4'06 to 39.7% in Q1'07.

"Timing is everything in the mobile market," says Peddie, "Nvidia is getting the benefit from having had its mobile parts lined up and ready to ship with Intel's recent laptop rollout."

In the overall PC graphics market, Intel saw a 1.3% gain in shipments in Q1'07, and was still the largest supplier of PC graphics devices worldwide. Nvidia was flat but remained the second largest supplier in Q1'07 and AMD's market share decreased.

Detailed First-Quarter results are available in the Q1 2007 edition of Jon Peddie's First Look, the firm's quarterly graphics survey.

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