Tiburon (CA) - A trend towards mobile computing is not just the driving force behind PC sales - graphics chip developers are seeing most of their growth in the mobile segment as well, according to JPR. In Q2, it was the green team that was especially successful in this field: Nvidia gained ground across the board and was the only graphics chip company to grow its shipments sequentially.
Jon Peddie Research (JPR) estimates that a total of 71.4 million graphics devices were shipped during the second quarter of this year. The number is up 16.6% over Q2 of 2005, but down a moderate 4.6% sequentially due to a seasonal market adjustment.
However, it was once again the mobile segment that saved the whole market from a more dramatic sequential drop in shipments. Desktop graphics declined 7% sequentially (up 11.6% year-over-year), while mobile graphics shipments increased 2.2% sequentially and jumped 31.9% over last year, JPR said.
Both segments reveal that standalone ("discrete") graphics remains a challenging business while volume growth is especially seen in the integrated graphics chipset (IGC) business. Desktop IGCs fell 7.1% sequentially, but climbed 14.7% over Q2 2005; mobile IGCs gained 4.2% and 47.1%, respectively. In discrete graphics, the desktop saw a sequential decline of 6.8% and growth of 7.0% over last year. In the mobile segment, standalone solutions decreased by 3.5% and gained 0.8%, respectively.
The growth in the mobile discrete market can be attributed to Nvidia, which was able to take over market shares from ATI: Nvidia's share in discrete mobile graphics climbed from 25.0% in Q1 to 36.7% in Q2; ATI's share fell from 74.6% to 63.1% in the same time frame. Overall, Intel controls the mobile graphics market, which JPR estimates to have reached about 19.6 million units (14.7 million IGC, 4.9 million discrete) during Q2: Intel's share is about 54.9%, ATI posted 31.0% and Nvidia follows with 10.9%.
In absolute numbers, the desktop segment still represents the lion's share of the market with 51.7 million units or 72%. Intel shipped 34.8% of all graphics units, ATI 26.3% and Nvidia 23.9%. However, Nvidia maintained its leading position in discrete desktop graphics with a 51.5% share over ATI's 47.9%. About 19.6 million discrete graphics solutions were shipped during the quarter.
Despite an overall 1.5% sequential decline in shipments, Intel still holds a very comfortable lead in overall graphics market share, which JPR now estimates at 40.3%. ATI remains in second place, but was hit with an 8.4% drop in shipments and a market share that decreased by 0.9 percentage points to 27.6%. According to JPR, Nvidia was the only graphics chip manufacturer to actually increase shipments (+2.0%) during the quarter, which was rewarded with a market share of 20.3%, a 1.3 point increase over Q1. JPR ranks via fourth with 8.2%, SiS follows with 3.5% and Matrox with 0.1%.