Cut-throat competition between major graphics processor vendors had to happen in the worst of times as far as the economic weather goes. The latest papers by Jon Peddie Research (JPR) covering the state of graphics add-in board market reveals that Q2 2009 has been a better quarter than Q1, but still worse compared to last year. This quarter, around 16.81 million units were shipped, which is a welcome 3 percent increase over the previous quarter (16.32 units), while compared to Q2 2008, shipments are down 15 percent. In contrast, the integrated graphics (IGP) market saw a 4 percent increase compared to last year.



One of the factors that could have contributed to the slump, according to JPR, is the replenishment of inventories in Q2, which overshadowed its digestion (sales). As for gainers and losers, AMD gained a handy 4 percent of market-share, while NVIDIA lost just that amount. AMD stands at 35 percent, with NVIDIA at 64 percent, against last quarter's 31 and 68 percent respectively. JPR however notes that "despite its renewed competitiveness, however, AMD hadn't yet seen a sustained growth in market share, as NVIDIA adamantly refused to give up any volume, aggressively cutting prices as necessary to avoid a loss in share," so in essence, NVIDIA's move to introduce drastic price cuts for some mid-thru-high end products seems to have worked in its favour. Hopefully H2 2009 looks better under JPR's watchglass, as new product launches are definitely indicated, and of course, there's the holiday shopping season incoming.



Source: Jon Peddie Research