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The market of graphics adapters in the third quarter of 2010 was slightly down compared to the second quarter of the year, according to Jon Peddie Research market tracking firm. Among leading suppliers of graphics adapters - both discrete and integrated - ATI, graphics business unit of Advanced Micro Devices - lost the most, whereas both Intel Corp, and Nvidia Corp. managed to boost their shipments.

Overall graphics chip shipments were an unseasonably 1% down from Q2 2010 due to the 8.4% drop in notebook sales despite an 8.4% growth in desktop sales reflecting the increasing impact of the notebook market. The possible cause for the decline in notebook sales could be shift from netbooks to Apple iPad slate as well as overall weakness of retail market in well-developed countries.

Embedded graphics processors (EPGs - Clarksdale/Arrandale and Pineview) from Intel showed strong growth, up 50% from Q2 2010, while total integrated graphics processors' (IGPs) shipments from all vendors slowed to a modest 1.4% growth quarter to quarter, which means that discrete graphics chips market dropped more than one quarter in terms of unit shipments.

Overall, market shifts occurred for all vendors even though the quarter-to-quarter total shipments were basically flat.

AMD attributed its slip in market share to weakened demand and OEMs letting their GPU inventory run down to avoid being stuck with leftover processors. Due to real and perceived shortages in supply, some customers shifted their purchases to rival Nvidia. Besides, there may have been some de-emphasis on GPUs after a significant weakening of the Euro that occured in early Q3, with laptop makers settling for cheaper, integrated graphics instead. AMD graphics unit shipments decreased 11% sequentially but increased 11% year-over-year.

Considering the fact that Nvidia managed to release award-winning GeForce GTX 460 family of graphics cards in volume last quarter and 40% of those boards are, according to some data, factory-overclocked and therefore more appealing to consumers, it is not surprising that the firm's market share increased. What may not be exactly good about the company's performance is that it still has a lot of cheap low-end products in the mix, something that affects its profit margin.

Tags: ATI, AMD, Nvidia, Intel, , Matrox, SiS, Via Technologies, S3 Graphics, Geforce, Radeon, Chrome

Discussion

Comments currently: 6
Discussion started: 10/26/10 10:04:12 PM
Latest comment: 10/27/10 08:00:13 AM
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1. 
I'd have very liked (and expected) to see the split by vendors for discrete graphics for desktops and notebooks separately.
Unfortunately, it's missed.
0 0 [Posted by: Azazel  | Date: 10/26/10 10:04:12 PM]
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It's easier for quasi-researchers to show this kind of inaccurate measurement.

Just like this sentence "AMD attributed its slip in market share to weakened demand and OEMs letting their GPU inventory run down to avoid being stuck with leftover processors."
And we're talking about gpu/modules and not "processors"

Although it's not unexpected as this kind of stagnating policy was casual for AMD, while nVidia sells more ions in various MacBooks and ramp up their dx11 along with vigorous cleansing their warehouses of ultimately obsolete dx10 chips.
0 0 [Posted by: OmegaHuman  | Date: 10/27/10 03:29:39 AM]
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2. 
Who care if the measurments are too general ... so the researchers were not thorough. What really makes me sick is the fact that INTEL has almost 60% of the graphics market overall while their products are of the lowest quality and lowest performance possible.
0 0 [Posted by: East17  | Date: 10/27/10 04:49:50 AM]
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Agreed.
0 0 [Posted by: Pouria  | Date: 10/27/10 05:35:09 AM]
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Me too.
0 0 [Posted by: Pouria  | Date: 10/27/10 05:40:53 AM]
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3. 
Nvidia seems to have stopped the bleeding and partly succeeded in defending market share. First by releasing better products, then by lowering prices. The next quarter should show the favorable impact of the GTS450.

As for the newer AMD 6850 and 6870, it would not be surprising to observe that they compete more with other AMD products (5770 and 5850) than with the GTX460: There are a lot of entrenched NVidia users out there.
0 0 [Posted by: BernardP  | Date: 10/27/10 08:00:13 AM]
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