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Nvidia Graphics Chip Market Share Nosedives

By - Source: Tom's Hardware US | B 48 comments

It isn't unusual to see shifts in graphics market share from quarter to quarter as we know that the timing of the introductions of new graphics products can dramatically impact the market position of any graphics chip developer.

However, at first sight, it appears that Nvidia has been hit especially hard in the first quarter of this year. The company's shipments were down 28.4% year-over-year, according to Jon Peddie Research (JPR). Nvidia's overall market share dropped to 20.0%, down from 28.0% in Q1 2010.

AMD was able to post 15.4% growth and increase its market share from 21.5% to 24.8%. Intel was also able to gain share at Nvidia's expense and jumped again across the 50% mark - from 49.6% to 52.5%, JPR estimates. Matrox, SiS, and Via/S3 do not play major roles in the global GPU market anymore.

The first quarter of this year was somewhat special as the overall shipment climbed against the seasonal trend by 10.7% from Q4. Nvidia, however, saw its shipments decline by 1.7%, while AMD climbed by 13.3% and Intel by 14.2%. Of course, AMD is currently capitalizing on its Fusion processor, which appears to be boosting graphics chip shipments overall. JPR principal analyst Jon Peddie told me also noted that Nvidia's decline is due to the fact that the company has exited the embedded and integrated graphics chip market. In its discrete business, Nvidia actually did well. the company held a 59.1% market share in desktop discrete graphics (AMD: 40.5%) and 41.7% in notebook discrete graphics (AMD: 58.3%).

The unknown variable in this game will be Nvidia's success in the tablet space, especially when Windows 8 will be moving to the ARM platform. There are also some open questions about Nvidia Tegra smartphones, which could reach levels that easily surpass traditional GPU shipments for the PC. Peddie noted that Nvidia is rather shy in this respect and does not reveal any numbers about this segment yet.

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  • 1 Hide
    NuclearShadow , May 4, 2011 8:49 PM
    Quote:
    Nvidia's decline is due to the fact that the company has exited the embedded and integrated graphics chip market.


    Which they no doubt left for a reason and must be a good one at that.
    Go ahead and sell as I buy.
  • 1 Hide
    pelov , May 4, 2011 9:14 PM
    NuclearShadowWhich they no doubt left for a reason and must be a good one at that.Go ahead and sell as I buy.


    They don't make a lot off of the tegras. The chips are cheap to produce and have to remain cheap to be sold in such quantity, nevermind the insane competition when it comes to ARM nowadays. Their GPUs price/performance is coming in 2nd best to AMD.

    Project denver and the new line of GPUs better be absolutely mind-blowing, otherwise this trend will continue.
  • 1 Hide
    Tomtompiper , May 4, 2011 9:18 PM
    NuclearShadowWhich they no doubt left for a reason and must be a good one at that.Go ahead and sell as I buy.


    It was a very good reason, they could not compete. And in the tablet space they face stiff competition from PowerVR whose tile based architecture is faster and more power efficient than traditional z-buffered approach preferred by Nvidia and AMD. At least have an ARM license to fall back on so they have somewhere to retreat to when the Bulldozer arrives.
  • 3 Hide
    JohnnyLucky , May 4, 2011 9:20 PM
    I didn't know Intel had 50% of the global market.
  • 8 Hide
    Tomtompiper , May 4, 2011 9:23 PM
    Quote:
    I didn't know Intel had 50% of the global market.



    Onboard graphics on most low end PC's netbooks and motherboards. 50% by unit, not by value.
  • -1 Hide
    milktea , May 4, 2011 9:24 PM
    Never owned any Nvidia products. Their names doesn't come up often in the mainstream consumer segments. Even with the introduction of smartphones, PowerVR is more heard of than Nvidia. It's sad.
  • -2 Hide
    memadmax , May 4, 2011 9:33 PM
    The last time I had a Nvidia card, the driver was so bad that it was almost unusable... since then, AMD baby...
  • -1 Hide
    dgingeri , May 4, 2011 9:56 PM
    I find this odd because I have bought more video cards this year than any year previously, and most of them have been Nvidia cards. I've purchased 2 GTX470's, a GT430, and a G210 for myself alone, and 6 more for family members. I've previously bought more ATI cards, but their recent driver quality and the problems I've had hooking them to HD TVs has discouraged me from buying more of them.
  • 0 Hide
    Anonymous , May 4, 2011 9:56 PM
    memadmax 05/04/2011 11:33 PM
    Hide
    -0+

    The last time I had a Nvidia card, the driver was so bad that it was almost unusable... since then, AMD baby...

    You are such a fanboy! Everyone knows AMD drivers are the worst and Nvidia are the best. As far as cards go...both are good but the drivers Nvidia wins hands down!
  • 1 Hide
    dgingeri , May 4, 2011 10:01 PM
    tomtompiperOnboard graphics on most low end PC's netbooks and motherboards. 50% by unit, not by value.


    This is mostly because most consumers, including many IT managers who make the buying decisions, are, quite simply, idiots. They don't realize just how many problems they'll have with driver issues and program compatibility. They just think cheap="good enough". So many people just don't realize that you get what you pay for, and paying a little more to get good quality is well worth the investment.
  • 2 Hide
    Trialsking , May 4, 2011 10:13 PM
    dgingeriI find this odd because I have bought more video cards this year than any year previously, and most of them have been Nvidia cards. I've purchased 2 GTX470's, a GT430, and a G210 for myself alone, and 6 more for family members. I've previously bought more ATI cards, but their recent driver quality and the problems I've had hooking them to HD TVs has discouraged me from buying more of them.


    You just need to buy like 1,000,000 more for everyone in your state to help Nvidia's market share.
  • -1 Hide
    kingnoobe , May 4, 2011 10:13 PM
    You maybe you're the fanboy. I've never had issues with amd/ati drivers. I've only ever had issues with nvidia go figure. Not to mention even the general census is amd is getting better with drivers.

    Not to mention the fact I've never had an amd/ati card fail on me. Yet both nvidia cards I've owned have. Now you can blame the manufacter, but if nvidia allows it's name on it at the end of the day it's their fault.

    Now with all that said I will admit my bias. I will never buy another nvidia even though I know that both amd and nvidia make good and bad cards.
  • 3 Hide
    dgingeri , May 4, 2011 10:38 PM
    kingnoobeYou maybe you're the fanboy. I've never had issues with amd/ati drivers. I've only ever had issues with nvidia go figure. Not to mention even the general census is amd is getting better with drivers. Not to mention the fact I've never had an amd/ati card fail on me. Yet both nvidia cards I've owned have. Now you can blame the manufacter, but if nvidia allows it's name on it at the end of the day it's their fault. Now with all that said I will admit my bias. I will never buy another nvidia even though I know that both amd and nvidia make good and bad cards.

    I've had both sides. When trouble starts coming up, I switch to the other vendor until they start showing trouble. My ATI issues started with the Radeon 9700, so I switched to a Geforce 6800. I went with Nvidia until I started having trouble with the 7800 drivers, so I bought a Radeon 4870X2. That worked until the 10.1 drivers came out, so I bought two GTX470s. Those gave me issues with the 268 drivers, but I had worse problems getting the Radeons to work on family computers, so I stuck with Nvidia cards for my server and my HTPC. (The Radeons left this huge black border around my screen, and I couldn't get it to go away. The G210 and GT430 are great with my TV. Yes, my server is hooked to my TV, but only so that I can directly work with it if I have to.)

    However, my dad's HTPC and TV worked better with a Radeon, so the one I left in his HTPC is a 4650. It has issues with Bluray playback, but he doesn't use it for that much. He uses it for Netflix and Skype calls to see his youngest grandson.
  • 4 Hide
    sykozis , May 4, 2011 11:20 PM
    dgingeriThis is mostly because most consumers, including many IT managers who make the buying decisions, are, quite simply, idiots. They don't realize just how many problems they'll have with driver issues and program compatibility. They just think cheap="good enough". So many people just don't realize that you get what you pay for, and paying a little more to get good quality is well worth the investment.

    Most companies don't need dedicated graphics cards, which is exactly why they buy systems with Intel's integrated graphics. If all your company does is work in MS Office or Corel Office, it's impossible to justify the increased cost of a dedicated graphics card. The only time the cost of a dedicated graphics card can be justified in a business environment is if the company works with graphics.

    YouSuckBigTimememadmax 05/04/2011 11:33 PMHide-0+The last time I had a Nvidia card, the driver was so bad that it was almost unusable... since then, AMD baby...You are such a fanboy! Everyone knows AMD drivers are the worst and Nvidia are the best. As far as cards go...both are good but the drivers Nvidia wins hands down!

    Sounds more like you're the fanboy. Considering the countless number of complaints of stuttering with Fermi cards that come and go with different drivers....You might want to look at actual facts. Also, nVidia's overall support has been going downhill....
  • 3 Hide
    AppleBlowsDonkeyBalls , May 4, 2011 11:46 PM
    Looks like this is gonna be a great year for AMD. Fusion seems like the best bet they've made in years. If Bulldozer and Llano can be competitive with Sandy Bridge at the high-end, mainstream, and low-end this is gonna be one of their best years ever.
  • 3 Hide
    Anonymous , May 5, 2011 12:18 AM
    It was a huge design win for AMD GPUs to be included in all of Apple's newest 15 & 17" Macbook Pros and the just released Sandy Bridge iMacs. While many may discount Apple's products, their market share IS increasing and by including AMD GPUs rather than Nvidia GPUs in their systems, it's not surprising that Nvidia's market share has significantly dropped.
  • 0 Hide
    bin1127 , May 5, 2011 12:41 AM
    are they counting the sandybridge chipsets that needs IGP? they really should split up the categories into discrete and integrated.
  • 1 Hide
    campb292 , May 5, 2011 12:51 AM
    This sounds great for consumers. If I am reading the stats right, it looks like NVIDIA and AMD both have about a 25% market share with Intel having 50%. Again, that is all segments which I find only modestly interesting.

    The big stat I notice is discrete graphics which I would assume most of us really care about - unless you love on-board graphics and would never be caught building a new unit without those "big clunky video card addons". Here, NVIDIA still whoops some booty with 60% share to AMD's 40%.

    All the competition is good guys. All that matters is that some R&D guy sees the other company with a new product at x/$ with y/performance and figuring out how to leap past that with something that will sell.
  • 1 Hide
    nforce4max , May 5, 2011 1:01 AM
    dgingeriThis is mostly because most consumers, including many IT managers who make the buying decisions, are, quite simply, idiots. They don't realize just how many problems they'll have with driver issues and program compatibility. They just think cheap="good enough". So many people just don't realize that you get what you pay for, and paying a little more to get good quality is well worth the investment.


    From my own personal experience you are absolutely correct.
  • -1 Hide
    nforce4max , May 5, 2011 1:09 AM
    The only reason why I have yet to move over to ati is the usual cuda and physx besides the common drivers issues. As for driver issues with nvidia I have only had issues related to only just one game but every thing else has been rock solid. I only update when it is required. I use older more stable drivers for my existing ati cards that I know that I can rely on. Both are modded and are better suited for my demanding use than normal cards. As for current generation Fermi cards it is not drivers but very poor manufacturing quality of most cards leaving hot spots that make the cards more unstable as well a short life span. To me I expect 15,000 to 20,000 hours life out of a card before it is completely retired unless a required upgrade interrupts that cycle. 10,000 to 15,000 hours for mechanical hard drives. A typical gtx 460 and non reference gtx 560 will have a typical life span less than 10,000 hours due to the lack of proper cooling of the whole card. Similarly the same for many ati cards if the thermal pads are not properly applied to the power vrm phases for either core or vram.
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