First Quarter PC Graphics Shipments Up 25%

First Quarter PC Graphics Shipments Up 25% Year-Over-Year; Notebook Graphics Shipments Soar 31%

Nvidia expands discrete market share, ATI grows overall


TIBURON, CA - May 19, 2006 - Jon Peddie Research (JPR), a leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the first calendar quarter of 2006. Detailed first quarter results are available in the Q1'06 edition of Jon Peddie's Market Watch, the firm's quarterly graphics survey. Market Watch provides an in-depth look at the PC graphics market and includes unit shipment and segment market share data, trend analysis, shipment forecasts, and profiles of major suppliers.


Jon Peddie Research estimates that approximately 74.9 million PC graphics devices shipped from major suppliers in Q1'06, a 5.7% decline from the prior quarter and a 24.5% increase over the same period the previous year. The desktop graphics segment saw shipments fall 7.5% from Q4'05 to Q1'06 but shipments grew 22.3% year-over-year. Integrated desktop shipments dropped 8.6% sequentially but increased 33.7% annually. Discrete desktop shipments fell 5.7% on a quarterly basis and grew 7.2% year-over-year.


The mobile graphics segment saw quarterly shipments decline just 0.2% and grow 31.2% year-over year. Integrated mobile shipments fell 1.3% sequentially but grew 55.7% annually. Discrete mobile shipments grew 3.0% during the period but fell 8.6% compared to the same period the previous year. Discrete mobile was the only market segment to exhibit sequential growth during the first quarter, but was also the only segment to show a year-over-year decline in shipments.


JPR estimates that approximately 55.6 million desktop graphics devices shipped in Q1'06, 34.6 million or 62.2% of which were integrated parts. Overall, Intel claimed 34.1% of the desktop graphics market, ATI held 26.1%, and Nvidia followed with 23.3% market share. While Intel was the largest supplier of desktop graphics during the period, ATI widened its lead over Nvidia in the desktop segment as compared to the prior quarter on increased shipments of integrated graphics controllers. In the discrete desktop segment, however, Nvidia grew segment share from 51.5% in Q4'05 to 53.0% in Q1'06. ATI saw its discrete desktop share decline from 46.3% in Q4'05 to 45.1% in Q1'06.


JPR estimates that approximately 19.2 million mobile graphics devices shipped in Q1'06, 14.1 million of which were integrated chipsets for notebooks. Mobile IGCs claimed share of 73.5% in the mobile graphics market, down from 74.4% share in the prior quarter but up from 62.0% share in the same period a year ago. Intel led the mobile graphics market with 53.3% share, ATI held 36.4% share, and Nvidia followed with 6.6% market share. As on the desktop side, ATI expanded its overall mobile market share on increased shipments of integrated graphics shipments for notebook platforms. In the discrete mobile segment, however, ATI saw shipments decline on a quarterly basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete mobile segment share from 20.3% in Q4'05 to 25.0% in Q1'06. ATI's segment share fell from 79.2% in Q4'05 to 74.6% in Q1'06.


"ATI's desktop and notebook IGC shipments are growing steadily and providing a challenge to Intel in these segments," said Lisa Epstein, a senior analyst at Jon Peddie Research. "But Nvidia is in turn challenging ATI for more lucrative discrete graphics share. Nvidia leads ATI in the discrete desktop segment and grew share in the discrete mobile segment by nearly five points in the first quarter," Epstein concluded.


Intel saw a 1.8% sequential decline in graphics shipments in Q1'06, was the largest supplier of PC graphics devices worldwide, and claimed an increased share of the total graphics market during the quarter. ATI remained the second largest supplier in Q1'06 with a 1.9% sequential increase in shipments and increased market share. Nvidia was the third largest supplier in Q1'06, with a 4.3% sequential decline in shipments and increased market share. The following table lists the ranking and relative market share, based on unit shipments in Q4'05 and Q1'06, of the major graphics suppliers to the PC industry.


       Rank             Graphics Supplier                      Q4'05 Market Share       Q1'06 Market Share

           1                Intel                                          37.5%                               39.1%

           2                ATI Technologies                         26.5%                               28.7%

           3                Nvidia                                        18.7%                               19.0%

           4                VIA Technologies                         12.0%                               9.0%

           5                Silicon Integrated Systems (SiS)     4.7%                                 3.7%

           6                Matrox Graphics                           0.2%                                 0.1%

           7                Others                                        0.4%                                 0.4%