Business, Graphics

PC graphics market expands by massive 21.2% in 3Q 2009

Jon Peddie Research announced its third quarter [July-August-September] report for PC graphics market and according by all accounts, it was a quarter to remember. The total number of graphics chips shipped during 3Q 2009 was 119.45 million – almost 8.5 million units higher than the previous record holder, 3Q 2008. A 21.2% quarter-on-quarter growth was the highest experienced one in nine years, meaning the consumers have reason to buy more powerful graphics again.

Largest gains were achieved by SiS and S3 who experienced staggering growth in emerging markets such as APAC [Asia-Pacific]. The effects of Chinese stimulus package resulted in 209.3% quarter-on-quarter growth for SiS, rising up to 1.1% of overall world market [1.31 million units]. VIA/S3 also came back from the grave, taking 1.5% of the market [1.79 million units], up from 0.8% the quarter before.
The biggest loser is now Matrox Graphics, dipping below a single decimal percentage and now takes 0.0% of the market.

Coming into the big league, Intel continues to dominate the overall share with its integrated graphics parts featuring questionable driver optimizations. Regardless of this, Intel shipped 63 million units, taking 52.7% of overall market share, up from 51.1% in 2Q 2009 or 49.4% in third quarter of last year.

AMD is now approaching the 20% mark for the first time in ages, with 19.8% of all units shipped. 19.8% market share makes up for 23.65 million units, a 3.1% growth over last year. The biggest loser among the big three is nVidia, who currently occupies 24.9% of the market, a 4% drop from 2008. In 2Q 2009, nVidia took 29.2% of the market, but until the company starts shipping Fermi parts across the range, we expect that a figure of 29.26 million units will continue to decrease, with AMD and Intel nibbling away the market share.

When it comes to eternal battle of integrated vs. discrete graphics, netbooks are the reason for majority of market share. Jon Peddie was quoted saying "Integrated graphics in notebooks, which includes the popular netbooks, increased 27% over 2Q – a great gain but less than discrete [57% growth over 2Q 2009]. Netbooks will remain popular but they will not have the high market share they had during the recession when they were just introduced. Rather, consumers are expected to "buy up" in the next quarter. "

Long story short, 2009 is looking to be a great year for graphics market, with probably over 350 million units sold. We have yet to see what impact we can experience from Windows 7 launch, given that AMD experienced a nice boost in 2Q 2009 by selling its two month worth of ATI Radeon HD 4800 inventory to Apple for giant’s revamped iMac line-up.

The overall 3Q 2009 table, courtesy of Jon Peddie Research

This Quarter Market share Last Quarter Market share Growth Qtr-Qtr This quarter last year Market share Growth Yr-Yr
AMD 19.8% 18.4% 30.2% 20.6% 3.1%
Intel 52.7% 51.1% 25.2% 49.4% 14.6%
Nvidia 24.9% 29.2% 3.3% 27.8% -4.0%
Matrox 0.0% 0.1% -50.8% 0.1% -70.0%
SiS 1.1% 0.4% 209.3% 1.2% 80.0%
VIA/S3 1.5% 0.8% 116.2% 0.9% 465.3%
Total 100.0% 100.0% 21.2% 100.0% 11.9%