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UPDATE: Adding more detailed table with actual number of graphics adapters shipped.

Amid rather untraditional behaviour of the graphics adapters market in the second quarter of 2011, Advanced Micro Devices and Nvidia Corp. face declines in unit shipments in spite of market growth. By contrast, Intel Corp. managed to increase shipments of its integrated graphics adapters and now comments over 60% of the market, according to Jon Peddie Research.

Shipments during the second quarter of 2011 did not behave according to past years with regard to seasonality, and was higher on a year-to-year comparison for the quarter. Normally, the second quarter of the year is a slower business quarter in the graphics industry (and in the PC industry as a whole). This year, Q2 2011 did not conform to the normal seasonal cycle. Instead, shipments increased to 140 million units, up 22 million units from this quarter last year.

The growth in Q2 naturally comes as a welcome change, but there are worries that shipments increase happened not because of inventory building for back-to-school and the holiday seasons, but because of channel stuffing. There are reasons for such worries: over 84 million PCs shipped worldwide in Q2 2011, a sequential increase of 2.4%, (based on an average of reports from Gartner, IDC, and HSI) causing speculation that the 6.3% up-swing in graphics could be an inventory buildup and have a negative impact on Q3 or Q4.

Despite of healthy shipments increase both sequentially and annually, Intel was the only company to boost sales of its graphics adapters and market share. The reason for that is gradual rise of the share of central processing units with integrated graphics engines inside Intel's product mix. Considering that in average there are 1.6 graphics adapters per every computer sold, it is clear by far not all Intel's integrated graphics adapters are actually utilized by consumers.

Intel continues to be the overall market share leader in Q2 2011. The world's largest chipmaker's shipments of graphics adapters soared 19.6% sequentially as sales of CPUs with integrated graphics rose 41% quarter-over-quarter. AMD's shipments of graphics adapters dropped 7.3% QoQ despite of the fact that it managed to increase sales of its microprocessors with built-in graphics accelerators (accelerated processing units, APUs). Although Nvidia sold 5.3% less graphics products in Q2 compared to Q1, it succeeded in securing numerous design wins with its discrete graphics processing units and increased their sales by 30%, according to Jon Peddie Research.

Year to year in Q2 20011 Intel had tremendous market share growth (14.7%), AMD had a loss of 14.2%, and Nvidia slipped 18.4% in the overall market partially due to the company withdrawing from the integrated segments.

JPR's forecast for the coming years has been modified since the last report, and is less aggressive on both desktops and notebooks. The analysts believe that 2011 is shaping up to be an anomalous year as businesses take their own path to recovery.

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

Discussion

Comments currently: 29
Discussion started: 08/09/11 10:19:08 PM
Latest comment: 08/12/11 09:09:36 AM
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1. 
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3 8 [Posted by: catsrevenge  | Date: 08/09/11 10:19:08 PM]
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@catsrevenge,
Do you sincerely believe that anybody's opinion can knock down good and solid company?
4 6 [Posted by: Azazel  | Date: 08/09/11 10:42:01 PM]
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It is a report from a market research company.


"Graphics adapters are merely a small part of Nvidia`s arsenal of world class products"

Just a reminder:

NVIDIA reported revenue of $962.0 million for the first quarter of fiscal 2012 ended May 1, 2011, up 8.5 percent from the prior quarter, and down 4.0 percent from $1.0 billion from the same period a year earlier.

Link: http://phx.corporate-ir.n...ID=1563359&highlight=

Revenue split:

GPUs - 66.27% - $637.6 million
Professional Solutions - Tesla + Quadro - 20.97% - $201.8 million
Consumer Products - Tegra - 12.7% - 122.6 million

Link: http://phx.corporate-ir.n...JRD0tMXxUeXBlPTM=&t=1

I guess you should try learning something about your favourite companies before posting comments.
5 3 [Posted by: Anton  | Date: 08/10/11 04:58:27 AM]
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2. 
@catsrevenge

Desperate fanboy is desperate.
4 6 [Posted by: ViralRazor  | Date: 08/09/11 10:53:22 PM]
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3. 
Why buy a crappy graphic solution from Intel?Two, maybe three answers:1 You are stupid. 2 you have no choice when buying a computer. 3 Intel has payed everybody off to use only Intel chips...most probably true because both AMD and Nvidia chips are better and some of them even cheaper.And yes, people are misinformed and do not care much about quality(video and graphic and maybe audio)so informed opinions do not matter at all.
6 3 [Posted by: mosu  | Date: 08/09/11 11:47:54 PM]
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Why spend more money at a unneeded external gfx, when the one allready suplied by intel/amd' inside the cpu, works fine for you?
5 4 [Posted by: rmas  | Date: 08/10/11 01:18:14 AM]
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My Answer is 2. in dont use Intel Integrated Graphics on my Desktop. Only on My Laptop when i purchase Dell XPS when its an option if you have Nvidia wtih Optimus
0 1 [Posted by: xentar  | Date: 08/10/11 02:16:13 AM]
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ahhh... so nice thinking about how stupids are people out there. Now i feel good. At least you tried to say the truth:"people are misinformed and don't care". But generally people are misinformed becouse don't care. you should understand people point of view. if you said me that my funny new electric pepper mill is crappy, hasn't ultimate leds, has shorter blades and (last but not least) i'm a complete idiot; i'd trow my pepper mill in your back. the point is: who cares about igp performance? we will see. i think many... but no as marketing wants.
1 2 [Posted by: max  | Date: 08/10/11 02:29:14 AM]
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Maybe because you don't need it. Do remember that there are people who don't game, but still buy new computers. Also, many medium and large businesess seem to favor Intel solutions (and GFX is the last thing they need on 98% of their PCs).
0 0 [Posted by: mathew7  | Date: 08/10/11 11:32:13 PM]
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4. 
Intel is double dipping... So many people are forced to buy a Intergrated Intel GPU weither they are going to use it or not as its built into the CPU. For every AMD and Nvidia graphics card sold.. intel Sells its intergrated GPU along side unless that buyer went with an older gen intel CPU or an AMD CPU.

At the end of the day intel may have 60% of the market but only about 30%+ of that are ACTIVE GPU's that are acually being used.

So its broken down like this

Intel CPUs + intergrated GPU's 60% of the market
Intel CPUs without GPU 20% of the market
AMD CPU's 20% of the market

So its pretty easy to see how they hold 60% without even trying.. AMD will also have this doubling effect soon enough too once most of its CPU's have intergraded GPU's

Nvidia will have a reduced market share even though it may sell more graphics cards then AMD as it doesnt have any intergraded GPU's to double dip in the market with like Intel and AMD.
5 1 [Posted by: vid_ghost  | Date: 08/10/11 01:11:32 AM]
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Very true. Actually the consumer will have better choice with AMD because they'll have the choice of not having an integrated GPU, so everyone who wants some graphics power can focus on the discrete adapter in their system without having a lame duck integrated one.
0 0 [Posted by: mikato  | Date: 08/10/11 07:31:48 AM]
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3 8 [Posted by: jimbo75  | Date: 08/10/11 03:12:40 AM]
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Where does AMD's APU fit in then? It would have been included in these figures as it has integrated GPU parts like Sandy Bridge.
1 1 [Posted by: GavinT  | Date: 08/10/11 04:02:59 AM]
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Yes that's likely included, but of course Intel sells much more CPUs than AMD, therefore integrated graphics as well.
0 0 [Posted by: mikato  | Date: 08/10/11 07:29:13 AM]
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The reporter is simply reporting facts / information provided by a research firm. There is no bias involved in the article.

Go back to worshipping the outdated Phenom and Athlon processors. Come back with more insightful unbiased comments when AMD can produce a CPU better than the Core 2 Quad 65nm from 2007.

Also, people who game on the desktop PCs or laptops could care less what Intel's overall market share is. HD3000 is a joke for gaming. The fact that people are not upgrading discrete GPUs as much is because:

1) More and more people are gaming on consoles and portable devices;

2) Crappy console ports have mitigated the desire even for us enthusiasts to keep dropping $300+ on a new GPU that is maybe 15-20% faster than HD5870 from September of 2009.

3) The GPU offerings in the <$99 GPU segment are laughable. There is still nothing that's much better than the HD4870 or GTX260 which could have been purchased for $120 2 years ago. HD6770 or GTS450 for $100? What a rip-off.

Fact is, without next generation games, people are holding on to their current GPU offerings and with today's economy it's pretty stupid to go out and keep buying the latest and greatest GTX680 SLI setup or HD7970s to max out bloated WOW DX11 code-path. Also, not everyone worships BF3 enough to spend $250-350 on a new GPU just for that 1 game.

The primary reason the discrete GPU market is shrinking on the PC is because fewer and fewer people need a GPU for gaming for their laptops/desktops. Most people are using their computers for watching 1080P videos, browsing on facebook / emails and playing Farmville.

Soon there will be no GPUs less than $125 worth buying on the desktop, reducing the discrete GPU market share even more.
1 1 [Posted by: BestJinjo  | Date: 08/10/11 09:11:46 AM]
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Why should stats from Jon Peddie even get quoted? Jon Peddie are a marketing firm not a research firm. IGPs don't count as graphics adapters since adapters are something that can be added or removed from a system.
0 2 [Posted by: user99  | Date: 08/10/11 10:03:20 AM]
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What are you on about?

http://jonpeddie.com/about

Jon Peddie Research is a technically oriented marketing, research, and management consulting firm.

Secondly, Llano and Intel IGPs are called APUs. You can drop the IGP concept entirely from now on. And APUs 100% count since they good enough for 95% of people's basic 2D/3D needs.

If you want to argue that there should be separate information for discrete GPUs, that's totally different. But in the overall 3D market, APUs should be considered as part of the overall "Graphics" shipment because the graphics is now embedded inside the CPU.
1 2 [Posted by: BestJinjo  | Date: 08/10/11 01:19:16 PM]
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IGP / APU it's the same concept in a different package. Basically it's the video chip you get by default.

Did you have any clue as to what jon peddie is about? The only research they do there is how to spin products. Check out the bios. Sales and marketing types and have alway struck me as next to clueless about the tech.
0 2 [Posted by: user99  | Date: 08/12/11 09:09:36 AM]
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You should have changed Shilov with Jon Peddie who really had done that account which in its turn is really stupid, no questions.
0 0 [Posted by: Azazel  | Date: 08/10/11 09:17:15 PM]
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6. 
So they are counting Intel Sandy Bridge CPUs sold in these numbers, which are CPUs with a built in graphics adapter? I gather that's what you mean with the average 1.6 graphics adapters per computer sold - not that many people are using SLI or Crossfire. What a ridiculous way to count this. It sounds like you're just making up counting methods to promote Intel.

Your numbers actually point to a large percentage of people buying computers that have a built in graphics adapter on the Intel CPU and still choosing to get a much better AMD or Nvidia adapter for the system. That seems more like a negative for Intel, doesn't it? By the way, there is plenty of room for AMD to butt into such a system since they are doing the same thing but with much superior graphics and updated CPU architecture that will better compete with Intel's CPU architecture.
1 0 [Posted by: mikato  | Date: 08/10/11 07:26:15 AM]
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0 4 [Posted by: jimbo75  | Date: 08/10/11 09:11:28 AM]
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If 99% of the Earth's population was using a horse as the primary mode of transportation, but Ferrari and Lamborghini were still producing their sports cars, and you could afford them, would even care at all that your 100x faster Car wasn't the dominant player in the marketplace ?

As long as NV and AMD produce great GPUs and games push the graphics envelope (hopefully with next gen of consoles this will be accelerated), then I could care less if Intel has 99.9999999999% of global market share or that the majority of the world is happy with useless integrated graphics.

Look at it from an audiophile perspective. How many people are using stock headphones with their $700 iPhone4 devices? The market share of 'non-audiophile' headphones doesn't make them great in any way!
0 0 [Posted by: BestJinjo  | Date: 08/10/11 09:24:49 AM]
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8. 
Intel doesn't sell graphics solutions. It's like saying GM sold 10 million tires. The graphics included with Intel chipsets is like the crappy tires that come with your new car. Many people don't care or know that there is something better.
3 3 [Posted by: user99  | Date: 08/10/11 09:54:04 AM]
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Just because we have GTX580 SLI setups in our systems, it doesn't mean that HD3000 and Llano's GPUs shouldn't count as graphics capable GPUs. They can still play Portal 2, Starcraft 2 and WOW, right?

This is NO different than when NV and AMD sold GPUs on a chipset; except now IGP --> APU. The IGP / chipset GPU market share was a part of the overall graphics shipment, whether you like it or not! You guys fail to realize that we are talking about overall GPU share, not discrete share.

But like I said in this thread, overall market share doesn't matter anyway for us -- it does for investors/shareholders/CEOs, etc.

For us, we want discrete desktop GPU breakdown between NV and AMD across various price segments.
0 1 [Posted by: BestJinjo  | Date: 08/10/11 01:21:57 PM]
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Exactly, it's no different if the video is in the CPU or the chipset, it's still garbage. AMD's APU might be able to play a few newer games but Intel's solution can't. Have you looked at any game benchmarks. I'm guessing Call of Duty at 10fps isn't much fun.

Market share matters very much. If the market gets too lopsided then prices go up and choice and performance are lessened. You don't need to innovate when you have 90% of the market.
0 2 [Posted by: user99  | Date: 08/11/11 09:08:07 AM]
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9. 
Gah, Intel is like the Internet Explorer 6 of the GPU world.
3 1 [Posted by: Klinky  | Date: 08/10/11 10:04:11 AM]
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10. 
These kind of data charts can not be looked at realistically given the introduction of integrated graphics on the CPU.

I'm considering buying an Intel Sandybridge not for the integrated graphics, but the improved memory bandwidth over the regular i3 and i5, and i7 parts.

But I'm also going to buy an AMD card to pair up with it.

If you do the math on this, Intel gains market share, but AMD doesn't. But I'm not using Intel's solution for my graphics.

As he even states, "1.6 average graphics cards per user" That means the likelyhood of the average user NOT using the oboard graphics is pretty darn high.

It is therefore likely Intel captured nothing except maybe the extremely low end graphics card market space. AMD said they were leaving this market any way. I have no clue what Nvidia will do.


1 0 [Posted by: digitalgriffin  | Date: 08/10/11 10:44:46 AM]
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11. 
Erm... in the pic... the AMD is ranked second but is placed third and nvidia visa versa?

I like that the first commenter said that the article to be AMD friendly
0 0 [Posted by: nitro912gr  | Date: 08/11/11 05:17:20 AM]
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