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Jon Peddie Research agency published a piece of information about graphics solutions market in the fourth quarter 2002. Nothing really surprising here, but the general trends are very easy to see in these kinds of reports: integrated graphics gains popularity, while the demand on add-in graphics cards lowers.

As we have already informed you, personal computer market grew in the fourth quarter in comparison to the third quarter, so did the market of graphics solutions. JPA states that 53 million of graphics devices were supplied by 9 different vendors, up 13% from the third quarter.

NVIDIA continued to acquire the largest share of the market: 32%, though, the figure declined from the third quarter despite of 13% rise in sales. Intel is up 12% from the quarter before with 28% of graphics market. The third largest graphics solutions supplier is ATI Technologies with 19% share and 18% sequential growth. Such companies like Matrox Graphics, Trident Microsystems, Silicon Motion and 3Dlabs now occupy very small market shares and their sales were either down or flat in Q4 2002. No details about VIA/S3 Graphics who used to be rather strong in the mobile segment and SiS, who is popular in China.

It is necessary to point out that in the fourth quarter 2002 the number of graphics processors supplied for add-in graphics cards grew 9%, while the figure for integrated chipsets upticked 17%. The most significant growth was reported in the mobile segment: 25% sequentially.

To sum up, Intel continues to lead in the segment of integrated platforms. Since people usually do not need any advanced 3D features for business, with the introduction of cheaper solutions with improved 2D image quality Intel has very good prospects here. Having licensed Quad Pumped Bus and being the leader on the mobile market ATI also has loads of opportunities to sell more graphics chips. On the other hand ATI is just second among the suppliers of graphics processors for add-in boards after NVIDIA in terms of market share, but given that the market of discrete graphics shrinks these days, while ATI is ahorse with its high-end solutions, prospects for the Markham, Ontario-based company are good. Of course, just in case the company is as aggressive as it has been in the past six months after the R300 launch. NVIDIA is not in its perfect condition these days. Socket A processor market share tumbles, XBOX is slow and the company still cannot start selling its GeForce FX-based graphics cards. In case the sequence of failures continues, NVIDIA has all chances to lose part of its market share in one or two quarters.

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