Graphics AIBs show signs of recovery, ATI shines – JPR

Jon Peddie Research reports that graphics AIBs (discrete graphic cards) are showing signs of recovery after bottoming out in Q4 ’08. In what is traditionally the weak quarter, Q2, 16.81 million units were sold, rising from 16.32 and 15.20 in Q1’09 and Q4’08 respectively.

There was no major surprise, however, as sales are still down 15% in year over year basis, compared to Q2 ’08. At the same time, this is a strong improvement over 33.1% and 42.7% declines in the previous two quarters.

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Jon Peddie Research reports that graphics AIBs (discrete graphic cards)
are showing signs of recovery after bottoming out in Q4 ’08. In what is
traditionally the weak quarter, Q2, 16.81 million units were sold,
rising from 16.32 and 15.20 in Q1’09 and Q4’08 respectively.

There was no major surprise, however, as sales are still down 15% in
year over year basis, compared to Q2 ’08. At the same time, this is a
strong improvement over 33.1% and 42.7% declines in the previous two
quarters.

As expected, the market has shifted to entry-level and affordable products. Because of this shit, customers are looking out for the affordable (or “free”) integrated graphics (IGPs) on motherboards instead. As a result, the IGP market has recorded strong growth – in fact even improving 4% compared to Q2 ’08.

ATI had held cost-performance leadership since the release of the HD 4000 series in June ’08. However, this has not resulted in major growth in market share until now. This is because of nVidia’s strong marketing, constant rebrands and aggressive price cuts. At the end of the price wars, however, ATI could simply drop their prices lower than nVidia could afford. The prices have now stabilised, and the result is performance products available at affordable prices. ATI is finally starting to gain major chunks of market share – up 4% to 35% in Q2′ 09 compared to Q1 ’09. nVidia still holds the overall lead at 64%, followed by S3 and others with 1%. This mirrors (albeit to a lesser extent) ATI’s strong performance in the discrete laptop graphics segment – where ATI have taken the overall lead with a 53% share. ATI is especially in a good position, constantly gaining market share,
and with new DX11 products launching soon, which will be unchallenged
till at least Q4 ’09.

After the shock of Q4 ’08, the graphics AIB market is definitely recovering. With the global economy recovering and a slew of new technology available in H2 ’09, the market is expected to continue its recovery.

Reference: Jon Peddie Research

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