Graphics market in Q3 2006

Jon Peddie Research estimates that approximately 76 mln PC graphics devices shipped from major suppliers in Q3 2006, a 5.2% increase from the prior Q and an 11.2% increase over the same period the previous year. The desktop graphics segment saw shipments increased 2% from Q2 2006 to Q3 2006 and shipments grew 4.7% YTY. Integrated desktop shipments dropped 3% sequentially (the second consecutive quarter of decline) but increased 3.3% annually. Discrete desktop shipments jumped 10.2% on a quarterly basis and grew 6.8% YTY.

The mobile graphics segment saw quarterly shipments rise a dramatic 13.8% and grow 30.2% YTY. IGC shipments drove growth in the mobile market in Q2 2006 with a stunning 15.8% growth during the period, and discrete mobile shipments grew 7.5% during the quarter and jumped 9.3% compared to the same period the previous year. JPR estimates that a record 22.7 mln mobile graphics devices shipped in Q3 2006, 17.4 mln of which were integrated chipsets for notebooks. Mobile IGCs claimed a share of 76.8% in the mobile graphics market, up from 75.4% in the prior quarter and up from 72.3% in the same period a year ago. Intel led the mobile graphics market with a 51% share (down from 54%), ATI dropped to a 24% share, and Nvidia jumped with a 8% market share gain to 19% for the quarter. In the discrete mobile segment, ATI saw shipments decline dramatically on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete mobile segment share from 37% in Q1 2006 to 53% in Q3 2006. ATI’s segment share fell from 63% in Q2 2006 to 47% in Q3 2006. JPR estimates that approximately 53 mln desktop graphics devices shipped in Q3 2006, 31.7 mln or 59.5% of which were integrated parts. Overall, Intel held at 35% of the desktop graphics market, ATI dropped to 22%, and Nvidia grew to 25% market share. In the discrete desktop segment, Nvidia also grew, to 57% share and ATI claimed 43% share during the period.

Graphics market in Q3 2006
Suppliwe Q2 2006 Q3 2006
Intel 40% 40%
ATI Technologies 28% 23%
Nvidia 20% 22%
VIA Technologies 8% 10%
Silicon Integrated Systems (SiS) 4% 5%
Others <1% <1%
Source: Jon Peddie Research