Nvidia Graphics Chip Market Share Nosedives

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It isn't unusual to see shifts in graphics market share from quarter to quarter as we know that the timing of the introductions of new graphics products can dramatically impact the market position of any graphics chip developer.

However, at first sight, it appears that Nvidia has been hit especially hard in the first quarter of this year. The company's shipments were down 28.4% year-over-year, according to Jon Peddie Research (JPR). Nvidia's overall market share dropped to 20.0%, down from 28.0% in Q1 2010.

AMD was able to post 15.4% growth and increase its market share from 21.5% to 24.8%. Intel was also able to gain share at Nvidia's expense and jumped again across the 50% mark - from 49.6% to 52.5%, JPR estimates. Matrox, SiS, and Via/S3 do not play major roles in the global GPU market anymore.

The first quarter of this year was somewhat special as the overall shipment climbed against the seasonal trend by 10.7% from Q4. Nvidia, however, saw its shipments decline by 1.7%, while AMD climbed by 13.3% and Intel by 14.2%. Of course, AMD is currently capitalizing on its Fusion processor, which appears to be boosting graphics chip shipments overall. JPR principal analyst Jon Peddie told me also noted that Nvidia's decline is due to the fact that the company has exited the embedded and integrated graphics chip market. In its discrete business, Nvidia actually did well. the company held a 59.1% market share in desktop discrete graphics (AMD: 40.5%) and 41.7% in notebook discrete graphics (AMD: 58.3%).

The unknown variable in this game will be Nvidia's success in the tablet space, especially when Windows 8 will be moving to the ARM platform. There are also some open questions about Nvidia Tegra smartphones, which could reach levels that easily surpass traditional GPU shipments for the PC. Peddie noted that Nvidia is rather shy in this respect and does not reveal any numbers about this segment yet.

Source: Nvidia Graphics Chip Market Share Nosedives
 
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