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Tuesday, November 01, 2011
Intel, Nvidia Remain Leaders In Q3 Graphics Shipments

With Q3 graphics shipments up 16.7% over last quarter and 18.4% over last year, Intel led the quarter with 36.5% growth and Nvidia also posted a 30% growth.

Shipments during the third quarter of 2011 behaved according to past years with regard to seasonality, and was higher on a year-to-year comparison for the quarter, according to a report released by Jon Peddie Research (JPR), which estimated d graphics chip shipments and suppliers' market share for Q3'11.

The third quarter of the year is usually the growth quarter and was this year, which is a positive sign looking forward. The growth in Q3 comes as a welcome change,?is it inventory building for the holiday season.

This quarter, Intel celebrated its seventh quarter of embedded processor graphics CPU (EPG, a multi-chip design that combined a graphics processor and CPU in the same package) shipments, and had a very strong double digit growth in desktops and notebooks.

AMD lost in overall market share Intel gained more compared to last quarter and Nvidia declined due to its exiting from the integrated segments.

Year to year this quarter Intel market share increased (9.5%), AMD broke even, and Nvidia slipped -23% in the overall market partially due to the company withdrawing from the integrated segments. However, Nvidia gained 10.9% in desktop discrete.

The quarter's change in total shipments from last quarter increased 16.7%, above the ten-year average of 13.9%.

AMD's HPU quarter-to-quarter growth has been extraordinary at an average of 58.4% for desktop and notebook, and Intel?s EPG growth was significant at an average of 23.6%. This is a clear showing of the industry's affirmation of the value of CPUs with embedded graphics. The major, and logical, impact is on older IGPs, and some on low-end low-cost add-in boards (AIBS).

Almost 92 million PCs shipped worldwide this quarter, an increase of 8.8% compared to last quarter (based on an average of reports from Dataquest, IDC, and HSI).

At least one and often two GPUs are present in every PC shipped. It can take the form of a discrete chip, a GPU integrated in the chipset, or a GPU embedded in the CPU. The average has grown from 115% in 2001 to almost 160% GPUs per PC.

Discrete graphics processing unit (GPUs) chips and other chips with graphics (integrated graphics processor chipsets?IGPs, x86 CPU heterogeneous processor units - HPUs, andx86 CPU embedded processor units - EPGs) are a leading indicator for the PC market.

Market shares shifted for the big three, and put pressure on the smaller three, and most showed a decrease in market share as indicated in Table 1.

Intel continues to be the overall market share leader, elevated by Core i5 EPG CPUs, Sandy Bridge, and Pineview Atom sales for Netbooks. AMD lost market share quarter-to quarter and Nvidia lost share.

Nvidia is exiting the integrated graphics segments and shifting focus to discrete GPUs. The company showed significant discrete market share gain (30% qtr-qtr). Nvidia credits strong connect with new Intel Sandybridge notebooks. Ironically Nvidia enjoyed some serendipitous sales of IGPs in Q3 due to some older AMD CPU sales in Asia.

AMD's overall graphics market share dropped 0.3% from last quarter even though the company's HPU class Fusion APU processors are selling very well.

  Market share this quarter Market share  last Qtr Unit Change  Qtr-Qtr Share Change  Qtr-Qtr Market Share last yr
AMD 23.0% 24.4% 9.9% -5.9% 23.0%
Intel 60.4% 54.8% 28.5% 10.1% 55.1%
Nvidia 16.1% 20.1% -6.2% -19.6% 21.0%
Matrox 0.04% 0.0% 0.0% -14.3% 0.1%
SiS 0.0% 0.0% 0.0% 0.0% 0.0%
VIA/S3 0.5% 0.6% -8.9% -22.0% 0.8%
Total 100.0% 100.0% 16.7%   100.0%

Table 1 : Total Graphics Chip Market shares (Jon Peddie Research)

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