by Anton Shilov
08/09/2011 | 07:06 PM
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.