SOURCE: Jon Peddie Research (JPR)

Jon Peddie Research (JPR)

November 13, 2014 12:03 ET

Nvidia Jumps 13% From Last Quarter, Intel up 11.6%, AMD Slips 7% Reports JPR

Quarter-to-Quarter Total GPU Shipments up 8.7% -- Desktop Graphics up 1.9%, Notebooks up 13%

TIBURON, CA--(Marketwired - November 13, 2014) - Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, today announced estimated graphics chip shipments and suppliers' market share for 2014 2Q in its Market Watch quarterly PC graphics report, an industry reference since 1988.

Graphics processors, stand-alone discrete devices, and embedded processor-based GPUs are ubiquitous and essential components in all systems and devices today -- from handheld mobile devices, PCs, and workstations, to TVs, servers, vehicle systems, signage, game consoles, medical equipment, and wearables. New technologies and semiconductor manufacturing processes are taking advantage of the ability of GPU power to scale. The GPU drives the screen of every device we encounter -- it is the human-machine interface.

The third quarter is typically the big growth quarter, and after the turmoil of the recession, it appears that trends are following the typical seasonality cycles of the past.

Quick report highlights:

  • AMD's overall unit shipments decreased 7% quarter-to-quarter, Intel's total shipments increased 11.6% from last quarter, and Nvidia's jumped 12.9%.
  • The attach rate of GPUs (includes integrated and discrete GPUs) to PCs, for the quarter was 155% (up 2%) and 32% of PCs had discrete GPUs, (flat from last quarter), which means 68% of PCs today are using the embedded graphics in the CPU.
  • The overall PC market increased 6.9% quarter-to-quarter, and decreased 2.6% year-to-year.
  • Desktop graphics add-in boards (AIBs) that use discrete GPUs increased 7.8% from last quarter.

Q3 is, on average, usually up from the previous quarter. There was an abnormal spike in 2009 after the massive market decline, which warps the 10-year average to 7% and makes the 9% this year above average.

GPUs are traditionally a leading indicator of the PC market, since a GPU goes into every system before it is shipped, and most of the vendors are guiding cautiously for Q4 '14.

The Gaming PC segment, where higher-end GPUs are used, was a bright spot in the market in Q3. Nvidia's new high-end Maxwell GPUs sales were strong, lifting the ASPs for the discrete GPU market.

Q3 2014 saw a flattening in tablet sales from the first decline in sales last quarter. The CAGR for total PC graphics from 2014 to 2017 is up to almost 3%. We expect the total shipments of graphics chips in 2017 to be 510 million units. In 2013, 454 million GPUs were shipped and the forecast for 2014 is 468 million.

The quarter in general

  • AMD's shipments of desktop heterogeneous GPU/CPUs, i.e., APUs increased 10.5% from the previous quarter, and decreased 16% in notebooks. AMD's discrete desktop shipments decreased 19% and notebook discrete shipments increased 10%. The company's overall PC graphics shipments decreased 7%.
  • Intel's desktop processor embedded graphics (EPGs) shipments decreased from last quarter by 0.3%, and notebooks increased by 18.6%. The company's overall PC graphics shipments increased 11.6%.
  • Nvidia's desktop discrete shipments increased 24.3% from last quarter; and the company's notebook discrete shipments increased 3.5%. The company's overall PC graphics shipments increased 12.9%.
  • Year-to-year this quarter AMD's overall PC shipments decreased 24%, Intel increased 19%, Nvidia decreased 4%, and the others essentially are too small to measure.
  • Total discrete GPU (desktop and notebook) shipments from the last quarter increased 6.6%, and decreased 7.7% from last year. Sales of discrete GPUs fluctuate due to a variety of factors (timing, memory pricing, etc.), new product introductions, and the influence of integrated graphics. Overall, the trend for discrete GPUs has increased with a CAGR from 2014 to 2017 now of 3%.
  • Ninety nine percent of Intel's non-server processors have graphics, and over 66% of AMD's non-server processors contain integrated graphics; AMD still ships integrated graphics chipsets (IGPs).

Year-to-year for the quarter, the graphics market has decreased. However, shipments were up 7.8 million units from this quarter last year, which is the biggest increase in quite a while.

   Market share
this quarter
 Market share
last Qtr
 Unit Change
Qtr-Qtr
 Share difference
Qtr-Qtr
 Market Share
last yr
AMD  17.42  14.1%  18.73  16.5%  -7.0%
Intel  88.52  71.8%  79.31  69.9%  11.6%
Nvidia  17.36  14.1%  15.37  13.6%  12.9%
Others  0.01  0.01%  0.01  0.01%  0.0%

Table 1: Total Graphics Chip Market shares

Graphics chips (GPUs) and chips with graphics (IGPs, APUs, and EPGs) are a leading indicator for the PC market. At least one and often two GPUs are present in every PC shipped. It can take the form of a discrete chip, a GPU integrated in the chipset or embedded in the CPU. The average has grown from 1.2 GPUs per PC in 2001 to almost 1.55 GPUs per PC.

For PC and mobile device related companies small and large, new to the industry or established, it is critical to get a proper grip on this highly complex technology and understand its future direction. In this detailed 50-page data-based report, JPR provides all the data, analysis and insight needed to clearly understand where this technology is today and where it's headed. This fact and data-based report does not pull any punches: frankly, some of the analysis and insight may prove to be shocking.

Findings include discrete and integrated graphics (CPU and chipset) for Desktops, Notebooks (and Netbooks), and PC-based commercial (i.e., POS) and industrial/scientific and embedded. This report does not include the x86 game consoles, handhelds (i.e., mobile phones), x86 Servers or ARM-based Tablets (i.e. iPad and Android-based Tablets), or ARM-based Servers. It does include x86-based tablets, Chromebooks, and embedded systems.

Jon Peddie Research Market Watch Report contains the following content:

  • Major suppliers: Detailed data -- on the shipments of AMD, Intel, Nvidia, and others.
  • Financial results for the leading suppliers: Analysis of the quarterly results of the leading GPU suppliers
  • Market Forecasts: You will also be able to download a detailed spreadsheet and supporting charts that project the supplier's shipments over the period 2001 to 2018. Projections are split into platforms and GPU type.
  • GPUs: History, Status, and Analysis.
  • Financial History from for the last nine quarter: Based on historic SEC filings, you can see current and historical sales and profit results of the leading suppliers.
  • A Vision of the future: Building upon a solid foundation of facts, data and sober analysis, this section pulls together all of the report's findings and paints a vivid picture of where the PC graphics market is headed.
  • Charts, graphics, tables and more: Included with this report is an Excel workbook. It contains the data we used to create the charts in this report. The workbook has the charts and supplemental information.

Pricing and Availability
The Jon Peddie Research's Market Watch is available now in both electronic and hard copy editions, and sells for $2,500. Included with this report is an Excel workbook with the data used to create the charts, the charts themselves, and supplemental information. The annual subscription price for JPR's Market Watch is $4,000 and includes four quarterly issues. Full subscribers to JPR services receive Tech Watch (the company's bi-weekly report) and a copy of Market Watch as part of their subscription.

Click here to learn more about this major report, or to download it now. For more information call 415/435-9368 or visit the Jon Peddie Research website at www.jonpeddie.com. Additionally, contact Robert Dow at JPR (Robert@jonpeddie.com) for a free sample of Tech Watch.

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 in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie's Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.

Jon Peddie's Market Watch is a trademark of Jon Peddie Research. All other tradenames and trademarks referenced are the property of their respective owners.

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