Print 24 comment(s) - last by Cullinaire.. on Oct 28 at 7:12 AM

AMD comes on strong in notebook market as Intel and NVIDIA weaken slightly

The world economy and especially the economy in the U.S. is a hot topic. The poor economy is the reason cited by many companies from auction giant eBay to massive consumer electronics retailers like Best Buy and Circuit City for falling profits.

So far, the GPU industry is maintaining its growth, which is an impressive feat. The latest figures are in from Jon Peddie Research (JPR) on the overall GPU industry for Q3 2008. JPR reports that more than one third of computer systems shipping today use multiple GPUs accounting for some of the increased growth in the market. In Q3 2008 111 million GPUs were shipped, that is up from 91 million GPUs shipped the same quarter of 2007.

In Q2 2008, 94 million GPUs were shipped. Those numbers represent a growth of close to 18% quarter-to-quarter and 22.5% compared to last year. JPR reports that almost all GPU makers grew over the quarter. Only SiS saw a loss and Matrox didn’t grow at all.

AMD showed the biggest quarterly growth with a 33.8% gain from 18.1% on Q2 2008 to 20.6% this quarter. Intel still holds the most market share at 49.4% compared to 47.3% last quarter. NVIDIA grew 4.4% to a market share of 27.8% for Q3 2008.

In the desktop GPU market, Intel shipments grew giving it a 43.9% share of the market compared to NVIDIA's market share decline to 32.6%. AMD gained market share growing to 20.3% for the quarter. In the notebook market Intel saw its shipments drop one point to 56.2% of the market NVIDIA's share dropped to 21.8% from 23.6% in Q2 2008. AMD grew at the expense of Intel and NVIDIA from 17.9% share in Q2 2008 to 20.9% share in Q3 2008.

Dr. Jon Peddie said in a statement, "The third quarter is seasonally up as OEMs place orders for chips to build inventory for the holiday season. However, this quarter was up more than any other for some time, and in spite of suggestions of a recession that started last Q4. Desktops increased seasonally and notebooks enjoyed quite significant gains."

NVIDIA is coming on strong though and thinks that its new 9400M GPU for the notebook market could grab it up to 30% of the notebook market. The new NVIDIA GPU has already replaced Intel's parts in the MacBook line and is looking to oust Intel graphics from other computers coming to market as well. NVIDIA and Apple claimed that the 9400M GPU offered about five times more performance than the Intel GPUs that had been used in MacBook systems.

If NVIDIA can deliver on its goals for the 9400M, we may see a new landscape in Q4 2008, traditionally the biggest quarter for computer makers. With the slowing economy, many might expect to see drops moving into the holiday season. However, consumer electronics is one of the only product categories expected to see growth in shipments over the 2008 holiday season, which is widely expected to be the worst holiday season since the early 1990's.

However, Intel has vowed to do what it takes to get the business back that NVIDIA has taken. Perhaps a new Intel GPU will come soon that offers performance on par with NVIDIA's offerings.

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By 325hhee on 10/27/2008 2:48:37 PM , Rating: 3
[Collapse Comment] NEW! I think it has to do with the cost of these things By Staples on 10/27/08, Rating: 3 By Staples on 10/27/2008 1:47:05 PM , Rating: 3 When the 8800 series came out, there was just about no competition and NVIDIA priced thier cards sky high. In fact, I even bought a 7950 after the 8800s had been out for six months because NVIDIA's pricing was ridiculous. Then 10 month or so later when the 8800GTX had not dropped one cent, NVIDIA brought the 8800GT to market which was actually a good price. NVIDIA was prompted to lower their prices and do a better job (remember the supposed hardware decode in the 8800GTX that NVIDIA finally admitted did not exist?). More recently, it has been AMD who has been keeping prices low on midrange GPUs. 18 months ago a midrange GPU was 350$, now they are $200. People say that Intel is terrible at keeping prices high when they have no competition and that is true to an extent as they did with the Core 2 for a year and they are definitely doing it again with the Quad Cores however, everyone seems to forget abouut the worst violator and that is NVIDIA. I

Total agreement over there, Ultra 8800 was the card, at $800 or so, maybe $600. ATI tried to counter with the HD2900, which was more talk than performance, I've bought one to my disappointment. Then the 3800s came out, still nothing to brag about, the 8800GT out performed it by leaps and bounds.

And then, ATI's shining moment finally arose, the 4800 series, after much speculation, many so called reported leaks, ATI held up to its promises unlike its two predecessors. Nvidia cards debuted at $700, the 4870 debuted at $300. Nvida dropped their prices 3 times in two weeks, one price drop happened 2 days after another. ATI 4850 debuted at $200. Both cards had beautiful numbers, and the prices were extremely attractive. And eventually mail in rebates were available putting the 4850 at $150, 4870 at around $250. Again, Nvidia was forced to drop its prices and add rebates to compete.

Here we have are great gaming cards for reasonable prices, and real competition on hand. ATI was no competition at all with the 2900s and 3800s. So Nvidia could dictate what ever prices they wanted. Not so with the third round, and the net has been vivid about the ATI 4800's vs Nvidia's GT200s. The card wars are on again, and the techies have been waiting for this moment, many held off on buying the G80 series by Nvidia, even more held off on the 2900 and 3800. The G92 was even a stop over card according to some techies, but the GT200s and the 4800s both claimed price/performance. And that's what we finally have.

Good day for gamers and ATI/Nvidia. The masses have spoken $200 gaming card is the target. Well more like $150, the 4850 is doing extremely well in sales, it's affordable for casual gamers niche as well. Even surveys shows that most people really don't want more than $100.

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