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Jon Peddie Research Announces Desktop Graphics Market Findings


Jon Peddie Research: Desktop Graphics Semiconductor Market grew 6.5% quarter to quarter in Q4’05 to $1.6 Billion Worldwide

Integrated Graphics still lead market, closely followed by Performance Add-In Boards

TIBURON, CA – February 7, 2006—Jon Peddie Research (JPR), the leading research and consulting firm for graphics and multimedia, has just completed its measurement of the value of the desktop graphics market and broken it out into six segments.

Segment Value in millions
IGP/ IGC $795.00
Workstation $118.69
Enthusiast $43.51
Performance $525.27
Mainstream $96.80
Value $14.93

Table 1: The graphics market is divided between integrated chipsets (IGP/IGC) and discrete graphics chips. The integrated graphics chipsets are most often used in value and mainstream computers.
As the chart indicates, in Q4 of 2005, the desktop semiconductor graphics market was worth $1.59 billion dollars.

“The Enthusiast and Performance segments slipped in Q4, with the explanation being that the majority of the semiconductor buys were made in Q3 for the holiday rush,” said Lisa Epstein, a senior analyst at Jon Peddie Research. “However, with JiT (just-in-time) manufacturing the integrated segment showed strong growth in Q4, with Intel and VIA taking the lion’s share of the market at 74% between them, and ATI in third place with 11% during the period,” Epstein concluded.

JPR estimates that approximately 60.2 million desktop graphics devices shipped in Q4’05, 37.9 million or 63% of them were integrated parts – an increase of 4.4% over the previous quarter showing the continued growth of the integrated segment in desktop graphics. .

Overall, Intel claimed 32% of the desktop graphics market – a drop of five points (13.5%) from the previous quarter, ATI held steady at 24%, and Nvidia picked up one point to come in at 23%.

While Intel was still the largest supplier of desktop graphics during the period, the company’s segment market share declined sequentially from their high of 40% in Q4’04.

Meanwhile, Nvidia’s lead over ATI in the discrete desktop segment increased to 52% (compared to ATI’s 47%) attributed to Nvidia’s successes in the high-end retail channel where ATI has been absent.

It has been a great year for PC graphics (desktop, mobile, and servers) with 2005 growing 12.7% year-to-year.

JPR will be available for press and analysts interviews about the report and the product.

Pricing and Availability
The Q4’05 and Total year edition of Jon Peddie’s Market Watch is available now in both electronic and hard copy editions. A condensed version of Market Watch, entitled First Look, is available now. The annual subscription price for Jon Peddie’s Market Watch is $2,750 and includes four quarterly issues. The annual subscription price for First Look is $1,000. Full subscribers to JPR services receive Tech Watch, the company’s bi-weekly report and a copy of Market Watch as a part of their subscription. For information about purchasing Market Watch, please call 415/435-9368 or visit the Jon Peddie Research Web site at

About Jon Peddie Research
Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie’s Market Watch and First Look are quarterly reports focused on the market activity of PC graphics controllers for mobile and desktop computing.


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