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According to market research company Jon Peddie Research the market of PC graphics devices expanded by nearly 25% annually in the first quarter of 2006. The king of the hill is Intel Corp., while ATI Technologies is the second, however, its higher position relatively to Nvidia Corp. is conditioned by increasing shipments of core-logic sets with integrated graphics cores.

74.9 Graphics Devices Shipped in Q1 2006

Jon Peddie Research estimates that approximately 74.9 million PC graphics devices shipped from major suppliers in Q1 2006, a 5.7% decline from the prior quarter and a 24.5% increase over the same period the previous year.

Intel increased its share during the Q1 2006 and commanded 39.1% of the market, whereas ATI remained the second largest supplier with 28.7% of the market in Q1 2006 with a 1.9% sequential increase in shipments. Nvidia was the third largest supplier in Q1’06, with 19% market share and a 4.3% sequential decline in shipments.

Nvidia Leads Desktop Discrete

JPR estimates that approximately 55.6 million desktop graphics devices shipped in Q1 2006, 34.6 million or 62.2% of which were integrated parts. The desktop graphics segment saw shipments fall 7.5% from Q4 2005 to Q1 2006 but shipments grew 22.3% year-over-year. Integrated desktop shipments dropped 8.6% sequentially but increased 33.7% annually. Discrete desktop shipments fell 5.7% on a quarterly basis and grew 7.2% year-over-year, according to JPR.

Overall, Intel claimed 34.1% of the desktop graphics market, ATI held 26.1%, and Nvidia followed with 23.3% market share. In the discrete desktop segment, however, Nvidia grew segment share from 51.5% in Q4 2005 to 53% in Q1 2006. ATI saw its discrete desktop share decline from 46.3% in Q4 2005 to 45.1% in Q1 2006.

Desktop discrete graphics processors is the primary business for both ATI and Nvidia, which means that declines in the segment are alarming for Markham, Ontario-based ATI. Another positive news for Nvidia Corp., a bad news for its rival, is that according to Mercury Research, Nvidia grew share in the performance DirectX 9.0-class and combined DirectX 9.0 desktop GPU segments from 79% to 83% and from 57% to 60%, respectively, from the fourth quarter of calendar 2005 to the first quarter of calendar 2006.

“ATI's desktop and notebook IGC shipments are growing steadily and providing a challenge to Intel in these segments. But Nvidia is in turn challenging ATI for more lucrative discrete graphics share. Nvidia leads ATI in the discrete desktop segment and grew share in the discrete mobile segment by nearly five points in the first quarter,” said Lisa Epstein, a senior analyst at Jon Peddie Research.

ATI’s Discrete Mobile Market Share Falls

JPR estimates that approximately 19.2 million mobile graphics devices shipped in Q1 2006, 14.1 million of which were integrated graphics chipsets (IGCs) for notebooks. Mobile IGCs claimed share of 73.5% in the mobile graphics market, down from 74.4% share in the prior quarter but up from 62.0% share in the same period a year ago.

The mobile graphics segment saw quarterly shipments decline just 0.2% and grow 31.2% year-over year. Integrated mobile shipments fell 1.3% sequentially but grew 55.7% annually.

Intel led the mobile graphics market with 53.3% share, ATI held 36.4% share, and Nvidia followed with 6.6% market share. As on the desktop side, ATI expanded its overall mobile market share on increased shipments of integrated graphics shipments for notebook platforms. In the discrete mobile segment, however, ATI saw shipments decline on a quarterly basis while Nvidia saw shipments increase sequentially.

Discrete mobile shipments grew 3.0% during the period but fell 8.6% compared to the same period the previous year. Discrete mobile was the only market segment to exhibit sequential growth during the first quarter, but was also the only segment to show a year-over-year decline in shipments. Nvidia grew discrete mobile segment share from 20.3% in Q4 2005 to 25.0% in Q1 2006. ATI's segment share fell from 79.2% in Q4 2005 to 74.6% in Q1 2006.

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Who the fuck is Matrox graphics?
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