"Advanced Micro Devices (NYSE:AMD)’ first-quarter share gains in the discrete and integrated graphics market came at the expense of rival GPU-maker Nvidia (NSDQ:NVDA), according to a report by industry watcher Mercury Research.
AMD, headquartered in Sunnyvale, Calif., gained 8.2 share points in the discrete graphics market in the first quarter of 2010, lifting the chip maker to a 42.1 percent overall share of that market. Nvidia lost 8.2 share points during that same period, according to the research firm. "
Hi guys...Did you notice that the CRN news story was not picked up by anyone else. Wonder Why? Well it's because it is false.
Below are some quotes from Barclay's research note....5/14.
"Market Share-Includes Integrated Chipsets
ATI - 20.2%
Intel - 52.2%
Nvidia - 26.3%
Other - 1.1%
ATI - 21.9%
Intel - 49.8%
Nvidia - 26.9%
Other - 1.4%
ATI - 20%
Intel - 53%
Nvidia - 25%
Other - 2%
Source: Company reports and Barclays Capital Research"
"According to Mercury Research, NVIDIA lost 0.3% market share to 64.8% in desktop discrete GPUs to end 1Q10 with 12.7 million discrete desktop GPU shipments. Management notes that Fermi launched in the last 3 to 4 weeks in the quarter, which we believe likely led to
some market share shifts. As Fermi based GTX 480/470 ramp, we believe NVIDIA may see gross margins head higher as it participates in the higher end segment with these offerings."
"In the discrete notebook space, NVIDIA appears to be seeing traction with 3.5% unit share gain in 1Q10. For F1Q, we believe notebook
discrete GPU revenues were up slightly QoQ for NVDA and expect a seasonal low single digit revenue decline in F2Q (July)."
"Intel gained 2.8% share in the integrated GPU market resulting in 74.8% market share and took share from both AMD-ATI and NVIDIA benefitting from the move towards integrated graphics and solid ramp of new core i3, i5 and i7 integrated graphics CPU offerings particularly on the notebook side where Intel gained 4.8% share in integrated notebooks. Looking ahead we expect continued cannibalization in the traditional integrated graphics space by graphics integrated CPUs.
Meanwhile NVIDIA ceded modest share in the overall integrated graphics segment moving from 13.4% in 4Q09 to 12.7% in 1Q10. While NVDA gained 1.6% in integrated desktop, the company lost approximately 2.7% share in integrated notebooks where we believe NVDA was
impacted by lower atom shipments pressuring NVDA's Ion business (Ion pairs an NVDA chipset with an Intel Atom chip). Atom unit shipments came in at 8.9M in Q1 and declined to 18% of total NB mix vs. 22% in the prior quarter."
J7777 is correct that the article was wrong.
In actuality, Mercury's data shows that the 8.2% gain was versus q1 2009, NOT q4 2009.
That is, a YEAR ago the discrete shares were 65.9 to 33.9 for NVidia.
But according to Mercury, that ratio was 57.4 to 42.4 in Q4 2009.
In Q1 2010, NVidia (more in line with JPR) recovered about .3-.4% market share from AMD.
So in a nutshell, the oversized GAIN reported by the article was incorrect.
However, the Q1 2010 shares themselves (57.8% to 42.1%) were accurate.
And, honestly, the 26.3 to 20.2 overall marketshare pretty much matches this discrete number (26.3 to 20.2 = 56 to 44)
Shame on the article for piss-poor reading skills, but the market share numbers are accurate.
a few things to consider:
NVidia doesn't have new design wins of chipsets for AMD anymore. IGPs do count.
AMD has had their new 40nm GPUs available for some time. NVidia hasn't had any new mid or low range 40nm parts available.
If NVidia is selling 100% of everything they make... one shouldn't expect them to grow market share.
NVidia made higher margins by adjusting product mix. The higher $$, the less they probably sell compare to the low end products... even though they make more $$.
NVidia does have a skewed quarter and am wondering if the research ended Mar 31, or included the end of NVidia's Q ?? NVidia did say in the CC they had a backloaded Q.
I think the IGP losses are offset by card sales. Take a look at the shipping motherboards with X58, P55 and H55 chipsets. Many of them have no video out, even in the Micro ATX format. Micro ATX almost always had integrated graphics with LGA 975 processors. Combine that with the ability to use SLI on Intel chipsets which was unavailable with LGA 975 and my hunch is the losses from IGP are being offset with higher margin discrete cards. If Nvidia is losing share 6 months from now I'll be concerned. The third quarter is the key with the mid range and entry level fermi available.
Well, I could rationalize this if the results indeed reflected reality.
Fermi chips/cards didn't ship until End of March or beginning of April (Q2 already!). Retail channels saw the first cards after April 12, and OEMs probably got them earlier.
Q1 market shares is already history as far as I am concerned. Not disappointed here.
Yeah, I'm still a bit perplexed myself. Reading through it, trying to make heads or tales. Need the actual Mercury Research report though. It's not like MR isn't reputable, but how does it differ so much from JP and, like you said, what we understand to be the reality of Q1?