Graphics card market booming

AS THE ECONOMY goes to pot, only graphics cards seem to be reversing the trend, coming out on top, with GPUs seeing their largest increase in quarter to quarter shipments in six years, according to new research figures.

Jon Peddie Research (JPR) reckons more than 111 million GPUs were shipped in Q3 2008, a whopping number despite the fact the third quarter usually sees good shipment growth as PC makers scramble to get their chip orders in before Christmas. "This quarter was up more than any other for some time, and in spite of suggestions of a recession that started last Q4," noted Peddie.

Last year’s Q3 saw only 91 million GPUs shipped, meaning that 2008 has seen an annual increase of some 22.5 per cent. Quarter to quarter increase in GPU shipments has also skyrocketed by 18 per cent, according to JPR.

Source: JPR

According to the figures, AMD seems to be the big winner, gaining big in both the desktop and laptop market segments and seeing year-to-year growth of 22.8 percent. Intel has also done well, with Chipzilla going from 33.4 per cent in Q3 2007 to 49.4 per cent in this year’s third quarter. Of the big three, only Nvidia seems to be struggling a bit, losing 6.4 per cent year-to-year in the overall market.

Breaking it down further, desktop GPUs increased 4.7 per cent in Q3, bringing them to a total of 61.9 million units shipped. Intel managed to hold on to its number one spot for desktop GPUs, increasing its lead and taking 43.9 per cent of the pie. AMD also won some market share points, climbing to 20.3 per cent as Nvidia saw itself slip to 32.6 per cent.

Intel still rules the roost on Laptop GPUs too, according to JPR, although the chip giant lost a point, dropping to 56.2 percent. Nvidia dropped almost two per cent in laptop shipments, bringing the firm to 21.8 percent of Laptop GPUs shipped in the third quarter, whereas AMD clawed its way up from 17.9 per cent to 20.9 percent.

Laptop graphics seem to be the market to watch though, taking a massive 40 percent quarter-to-quarter leap, reaching 49.4 million units in Q3, which now makes notebook GPUs a big 44.4 per cent slice of the entire market.

JPR also noted that more than one GPU was now being used in over a third of all PCs shipped. But as buoyant as the GPU market seems to be, Peddie doesn’t necessarily think it will stay immune to the credit crisis forever.

Source: JPR

The graphics and multimedia consultant said it would be interesting to see what happened in the fourth quarter, especially as both AMD and Nvidia were not expected to release any more new GPUs, whilst Intel and AMD had stabilised on their integrated offerings.

This, coupled with the manic depressive hype over the financial crisis could eventually have an effect on consumer spending, meaning Q4, usually the year’s dramatic climax, may well end up on a disappointingly flat note.

So when it comes to the graphics market, it may still take some time before we see the big picture. µ