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Jon Peddie Research (JPR), an industry's research and consulting firm for graphics and multimedia, said that overall demand towards desktop discrete graphics adapters declined in the fourth quarter of last year.

Overall shipments of graphics add-in-boards (AIBs) for the year, 2010 came in lower than the recession year 2009 at 72.8 million units compared to 75.3 million for 2009 – a disappointing result given the enthusiastic start of the year. Shipments in Q4 2010 did not exceed Q3 as expected. Nvidia increased its shipments by 4.1% from Q3, while AMD declined by 4.8% for the same period. Still, for the year the AIB market hit $17.2 billion, up 0.8% from 2009 showing a gradual rise in average selling prices (ASPs).

In terms of market share, market leader Nvidia increased its share by 3.6% from Q3, while AMD’s market share declined by 5.2% for the same period. On a year-to-year basis AMD increased its market share by 12.6% while Nvidia lost 6.2% of market share.

The AIB market is fueled at the high-end by the gamer, small in volume (~3m a year) but high in dollars (average spend for an AIB ~$300.) The volume comes from the mainstream. And GPU-compute is adding to sales on the high end. The workstation market is about the same size as the gamer, but much it is characterized by higher ASPs.

The decline in unit shipments of desktop AIBs is due to two factors – the erosion of the low-end by the integrated graphics processors (IGPs) and embedded CPU graphics (e.g., AMD’s Fusion, and Intel’s Core i "Sandy Bridge", etc.), and the shift in market share to notebooks, laptops, and tablet. However, that is being somewhat offset by the increase in sales of AIBs for GPU-compute, and by the use of two or more AIBs in high-end gaming and workstation systems.

Tags: JPR, ATI, Nvidia, AMD, Radeon, Geforce, Business

Discussion

Comments currently: 4
Discussion started: 03/09/11 01:03:07 PM
Latest comment: 03/10/11 08:36:12 PM
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1. 
Maybe they should lower the prices before it shrinks more. i think it's expensive to pay $500 for a graphics processor which i should upgrade almost every year if i want to keep my pc up to date. does nvidia make huge profits from this business because of monopoly?
0 0 [Posted by: alaa_kalala  | Date: 03/09/11 01:03:07 PM]
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2. 
Maybe if they had done a die-shrink of mainstream products, they would have sold more units.

Die shrinks are where the real improvements in price/performance come from. Both sides released higher performing chips on the same processes with marginally improved architecture and dramatically higher power requirements. I know zero people who bought one of these cards.

However, after every die shrink, I know at least half a dozen people who upgrade within 2-3 months. Things are going to be hard in both corners until TSMC gets back on the horse.
0 0 [Posted by: Laereom  | Date: 03/09/11 05:06:44 PM]
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Exactly. I agree with you. NVidia and AMD/ATI are more-or-less "killing the penalty" while waiting for the 28nm process.
0 0 [Posted by: BernardP  | Date: 03/09/11 07:07:04 PM]
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3. 
well i have friends with 4800 series cards
and it plays the games we play just fine
they have NO REASON to upgrade

when you get 90+ fps in Call of duty Black ops...
it don't matter anymore.

and we already know some of the cards only give marginal improvement, so there is no point

a lot of ppl i know are waiting for the next generation of cards
before upgrading
0 0 [Posted by: ultimaone  | Date: 03/10/11 08:36:12 PM]
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