Press Releases

Jon Peddie Research announces 2nd quarter PC graphics shipments

2010-07-30T18:04:19Z

TIBURON, CA-July 30th 2010-Today, Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced its estimated graphics chip shipments and supplier’s market share for Q2’10.

Overall graphics chip shipments were up four percent from Q1’10, while desktop discrete GPUs fell 21.4% reflecting the tremendous growth in notebooks.

For the first half of the year, 2010 shipments are 38.6% above the same period last year.

	CAGR	2005	2006	2007	2008	2009	2010	2005	2006
Total Graphics Chips:	14.2%	269.4	316.5	351.7	373.1	414.2	525.1	269.4	316.5
Annual percentage growth		12.7%	17.5%	11.1%	6.1%	11.0%	26.8%	12.7%	17.5%

Table 1: Growth rates from 2005 to 2011

Clarksdale, continued Atom sales for Netbooks, and strong notebook growth helped Intel maintain its leadership position in unit shipments for Q2’10. AMD led the market with the biggest gains for both discrete and integrated desktop products in the company’s history. On a quarter-to-quarter basis Nvidia had double-digit losses in every segment except notebook integrated where they showed a 10% gain in units shipments from last quarter.

Vendor	This Quarter Market share	last Quarter Market share	Unit Growth Qtr-Qtr	This quarter last year Market share	Growth Yr-Yr
AMD	24.4%	21.4%	19.1%	18.4%	32.6%
Intel	54.9%	49.7%	15.3%	51.1%	7.6%
Nvidia	19.7%	28.0%	-26.6%	29.2%	-32.4%
Matrox	0.0%	0.1%	-16.7%	0.1%	-34.2%
SiS	0.1%	0.2%	-45.5%	0.4%	-77.6%
VIA/S3	0.8%	0.7%	21.1%	0.8%	-5.3%
Total	100.0%	100.0%	4.3%	100.0%	0.0%

Table 2: Market shares

AMD reported their graphics segment revenue increased 8 percent sequentially and 87 percent (year-over-year) to $440 million.

Intel reported “revenue from client chipset and other” of $1.68 billion in Q2.

Nvidia’s fiscal quarter, straddles the calendar quarters. Their next quarter ends in July 31. Total revenue is now estimated at $800 million to $820 million, compared with the range of $950 million to $970 million provided on May 13, 2010.

The revenue shortfall occurred primarily in the consumer GPU business, resulting from increased memory costs and economic weakness in Europe and China. The increased solution cost of discrete GPUs led to a greater-than-expected shift to lower-priced GPUs and PCs with integrated graphics.

A new category – Processor Graphics
This edition of the market watch report includes breakout numbers for the shipments of a new category, Processor Graphics or PG. With the advent of new CPUs with integrated or embedded graphics, we will see the rapid decline in deliveries for traditional chip-set graphics or IGPs (integrated graphics processors.) The PG shipment numbers are included in the total integrated graphics number in this release.

Jon Peddie Research Says the CG market will exceed $150 billion in 2013

2010-07-19T19:57:54Z

Industry has had 16.5% growth for past 28 years

TIBURON, Calif- July 19, 2010 - The computer graphics industry has been a growth industry since it was established the late 1970s. Weathering the storms of the recession of 2009, the CG industry is back on track and showing new invigorated vitality and potential.

The computer graphics hardware market was worth $59 billion in 2009 and should exceed $63 billion in 2010.

In 2009 the CG software market was worth $11 billion (not counting services, maintenance and other aspects) and should grow to $11.6 billion in 2010 as the industry shakes off the remaining effects of the recession and starts replacing software tools.

Computer Graphics Hardware Market in Billions US Dollars

As a result of the pull back due to the recession, more people will be buying computer graphics software programs and we will see the development of traditional segments like CAD/CAM expand as new design approaches in automotive, aerospace, and architecture are brought forth. Visualization, a market that has been almost dormant for the past few years is poised now for great expansion due to exciting and lower cost technologies.

Computer Graphics Application Software Market in Billions US Dollars

Today, software programs for making movies and computer games, designing products, and creating simulations are exploiting the features of today's CG hardware. We're seeing the results in amazing realism and real time capabilities for the next generation of films and designs, and the trend is accelerating.

The demand for programmers, artists, scientists, and designers has picked up again and firms are actively looking for people who can use and exploit these new programs and their associated hardware accelerators. The economic recession has caused a slow down but it's going to look like a small bump in the road by 2013.

We are seeing new opportunities growing out of more mainstream applications for the web and consumer applications. The web is growing as a distribution medium for graphics content which in turn encourages people to pick up the tools, learn then, create content for pleasure, and even look for jobs in the field. What used to be a very closed society of experts is opening up.

Given these trends, we see the rate of growth continuing to grow.

Jon Peddie Research Acquires Vektorrum Group

2010-07-02T21:28:11Z

JPR enhances its CAD expertise;
TIBURON, CA-July 1, 2010-Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, today announced the acquisition of Vektorrum Group, one of the most knowledgeable and experienced teams covering the CAD industry today.

"The CAD industry is both a huge mature market, and a consumer and driver for cutting edge 3D technologies. JPR has always covered the CAD industry in our content creation industry reports and the CAD industry is an important product segment for our clients in the workstation and semiconductor industries," says JPR president Jon Peddie. "We believe JPR's focus on the graphics industry including graphics semiconductors, workstations, software tools, industry trends, and hands-on testing is very relevant to the Vektorrum readership. JPR has had a close relationship with its readers for over 25 years, and we are looking forward to welcoming Vektorrum's readers to the JPR community."

Upon completion of the deal, Vektorrum will become part of Jon Peddie Research's software division, and Vektorrum president Randall Newton will join Jon Peddie Research.

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, the JPR team provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications, consumer electronics, high-end computing, and Internet-access product development.

Jon Peddie's Tech Watch is a well-respected bi-weekly industry report with a focus on graphics and multimedia. Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.

The First Quarter of 2010 Another Solid Stepping Stone in the Workstation Market’s Road to Recovery

2010-06-08T00:09:09Z

TIBURON, Calif- June 7, 2010 - The workstation market posted another round of steadily improving results for the first quarter of 2010, taking one more solid step in its recovery from the lows of 2009. So reports Jon Peddie Research (JPR) after wrapping up its first quarter analysis as part of its JPR Workstation Report series. The technology and market research firm reports that the industry shipped 725 thousand workstations worldwide in Q1, resulting in sequential growth of 1.1% and a year-over-year increase of 25.7%.

While a welcome number, the 25.7% gain over the same quarter a year ago should be taken with a grain of salt, as it's more a reflection on how bad the Q1'09 market performed than how good Q1'10 turned out. Instead, it was the sequential gain that this time proved a better indicator of the progress the market is making in its climb back up to pre-recession levels.

In periods of flat or even modest growth, Q1 sales tend to lag Q4's, so even a modest sequential uptick is a bullish sign. And from that perspective, Q1'10 was stronger than might first appear, as a 1.1% sequential increase for Q1 signals a market ahead of its normal pace, more evidence of sustained momentum for its recovery from the ugly days of 2009.

Dell comes out swinging (again) in Q1'10 ... back in a virtual dead heat with HP
It's beginning to look like HP's coronation as the new king of workstations might have been premature. After years of closing a major gap to market leader Dell, HP flirted with volume leadership for three consecutive quarters, essentially deadlocked with Dell for Q4'08 through Q2'09. Finally, in the third quarter of 2009, HP surged ahead to take the workstation shipment crown outright for the first time.

But HP didn't get much time to revel in the top spot, as the very next quarter Dell's shipments surged, in the process virtually eliminating the scant lead HP had been able to manage. And in Q1'10, the company surprised to the upside once more, jumping back in front of HP, 39.3% to 38.1%. Since HP looks to still have a slight edge in revenue, JPR's calling it a tie, but Dell's successfully served notice that workstation market leadership is back up for grabs.

Amazingly, the professional graphics hardware market sets a new record for shipments, surpassing 2007 and early 2008 numbers
The professional graphics hardware market shipped 1.26 billion total units, up 17.6% sequentially and a whopping 77.9% year-over-year. Not only was growth surprisingly hot, but the market managed to set a new record for units shipped, besting totals from the bullish days of late 2007 and early 2008. Given the exceptionally precipitous downturn of 2009, a new record wasn't expected quite so soon, but the major beneficiaries Nvidia and AMD (ATI) certainly aren't complaining.

Stereovision PCs at the Tipping Point

2010-05-28T13:53:05Z

Analyst Jon Peddie says S3D PCs will thrive if there is good content to feed demand

TIBURON, CA-May 27, 2010-Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia just completed an in-depth look at the emerging Stereo 3D (S3D) PC market. Titled, “Stereovision in PCs,” The report finds that the S3D market is poised for rapid growth in the immediate future. Close to one million dedicated S3D PCs will ship in 2010. That number will grow to 75 million by 2014 as S3D becomes ubiquitous.

Table 1: Growth rates from 2010 to 2014
	2010	2011	2012	2013	2014	CAGR
PCs sold for S3D	0.86	6.10	29.54	60.65	75.00	206%
S3D capable GPUs	125.03	134.4	141	144.62	149.99	5%
(Shipments in M units)

Although most PCs will be S3D capable due to the GPUs that are in them, not all PCs will be S3D PCs because they need a special monitor, glasses, and appropriate content. .However, S3D PCs will be very attractive to several important market segments. JPR expects to see S3D PCs achieve a much higher growth rate than their more traditional counterparts and, of course, they will have a higher ASP. As a result, the S3D PC market will be very attractive to PC manufacturers and content suppliers.

JPR’s report, provides forecasts for the unit sales of the seven major applications that will take advantage of S3D on the PC:

PC: Games
Blu-ray DVD movies
Streaming TV (IP TV)
Photo-editing
Home video editing
Streaming video (from YouTube and other sites)
Professional graphics (CAD and visualization)

The expected growth rate of revenue in the hardware and content markets is very promising. JPR forecasts $34 Billion by 2014.

Table 2: S3D Market Value 2010 to 2014
	2010	2011	2012	2013	2014	CAGR
HW Market value ($M)	$640	$4,150	$16,749	$22,351	$24,876	150%

	2010	2011	2012	2013	2014	CAGR
Content market Value ($M)	$51	$366	$1,772	$3,639	$4,500	206%

“Gaming will be the vehicle for kick-starting the S3D PC market,” said Jon Peddie. “The gaming segment has the largest inventory of content and the most vocal enthusiasts who will spread the word and show their friends and families what it looks like and what it can do. They will ignite the imagination of the non-gamers. However, our forecast is that the S3D market will soar within the next three years based on the expectation that good quality content will be produced, and the incremental cost for S3D will diminish, if not disappear. Otherwise history will repeat itself and it will be reduced to a small volume novelty market. “

JPR Report: CAD Industry in Slow Recovery

2010-05-10T16:01:42Z

Jon Peddie Research announces the release of the CAD report for 2010 to 2014

TIBURON, CA-May 10, 2010 - Right along with the rest of the world, the Computer Aided Design (CAD) industry suffered severe setbacks in the recession of 2008-2009. Fortunately, in 2010 world economies are recovering and so are parts of the CAD industry. Because CAD tools are used in architecture, manufacture, plant design, assembly, tool design, mapping and Geographical Information Systems (GIS), recovery is decidedly uneven. For example the architecture industry was the first to feel the recession and it will take the longest to recover. On the other hand, the automotive industry, which saw a spectacular meltdown in 2009, is coming back more quickly. As with all recessions there are benefits to be realized in a slowdown and in some cases those benefits are already showing up in 2010.

Jon Peddie Research (JPR) estimates the CAD software market to be $5 billion in 2009. This is a 23% decrease compared to 2008 when the market reached a high of $6.7 billion. All industries in all geographies felt the effects of the recession. The market will grow in 2009 but it will not recover to the high levels seen in 2008, which was unnaturally fueled by financial bubbles. As difficult as the recession in 2009 has been and will continue to be for many companies, it will serve as a jump start for long term growth as many companies take the time afforded by a slow down to move to advanced technologies and retrain workers.

Inevitably, this same process is driving many workers out of the CAD industry. The contraction is tightest at the bottom rungs of the CAD work force where CAD operators or CAD drafters move on to find new opportunities. JPR estimates that at least 200,000 workers have left the CAD industry worldwide. In the coming years there will be increased opportunities for CAD workers who can take advantage of new software capabilities to increase their companies' efficiencies. In the architecture related fields, these opportunities will come to people who can help their companies move to a Building Information Management (BIM) workflow. In manufacture, we are seeing new opportunities appear in improving Product Data Management/Product Life Management/Customer Relationship Management (PDM/PLM/CRM) workflows, and analysis. In all segments of the CAD industry, rendering is become a mainstream capability across the board as workers become interested in creating their own visualizations.

In 2010, the CAD market will grow to $5.4 billion, a modest increase of 5%. We expect the CAD market to fully recover by 2013/2014.

Source: Jon Peddie Research, 2010
	2008	2009	2010	2011	2012	2013	2014
CAD revenue in Millions of U.S. $	$6,706	$5,176	$5,435	$5,924	$6,161	$6,716	$7,521.57

Two New Reports on Mobile Devices Semiconductors from Jon Peddie Research

2010-05-06T12:51:26Z

New JPR research looks at 26 companies and 10 unique markets for mobile devices

TIBURON, CA-May 6, 2010 - Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced today its new report series on mobile devices markets and semiconductor suppliers. Designed to illustrate new scenarios for semiconductor companies in non-PC and industrial markets, the reports uncover consumer opportunities as the post-recession mobile devices market heats up.

The series includes two reports, "IP and Semiconductor Suppliers Strengths, Weaknesses, Opportunities, and Threats (SWOT)," and a companion report, "Mobile Devices and Their Semiconductors."

The SWOT report found that there are five merchant IP suppliers, five SoC providers with proprietary video/graphics cores, and twelve OEMs that use the IP cores.

IP	SoC	OEM
ARM	Broadcom	Freescale	NEC
DMP	Nexus Chips	Fujitsu	Renesas
IMG	Nvidia	Intel	Samsung
Takumi	Qualcomm	LG	STEricsson
Vivante	Samsung	Marvell	Texas Instruments
		MediaTek	Zoran

The JPR report, "Mobile Devices and their Semiconductors," also looked at ten markets for the semiconductor and IP suppliers market forecasts and opportunities for those products and adjacent products.

DAB-HD radio	Digital Picture Frames
Digital Still Cameras	e-books
MIDs & Gadgets	Mobile Game Console
Navigation	Personal Media Devices
Smartphones	Tablets & Smartbooks

New Opportunities as Consumer Spending Increases

The mobile device market is fragmenting as low-cost, power-efficient processors emerge with advanced capabilities.

The report provides an individual segment historical background of the market from 2006 and forecasts unit shipments for each individual market from 2009 to 2015.

The total available market (TAM) for these multifunctional devices is almost 700 million units in 2010, growing to over 1.3 billion by 2015, representing a CAGR of 14.3%.

"The market for eBooks, tablets, smartphones and other mobile consumer products is exploding, and with the recession behind us, the consumer is ready to start spending again" said analyst Jon Peddie.

These reports are written for:

Senior management looking for adjacent market opportunities for their products
Financial analysts who want to understand the mobile device space better and examine companies and their chances for success
Marketing staff at companies that sell mobile devices and products that work with them
Technology professionals who want an introduction to mobile technology and mobile devices
Engineers who need to select a processor for a mobile device
Press and public relations professionals who need to get up to speed on the mobile devices market, players, and products

This report has been created as a resource to uncover the opportunities for semiconductor suppliers and their IP partners who have traditionally served the non-PC and industrial markets such as POS, medical, and test equipment and to help them extend their technology into what we are calling the "adjacent consumer markets" with a focus on mobile devices for consumers.

Jon Peddie Research announces first quarter shipments of PC graphics increase 44% year over year

2010-04-26T17:51:09Z

TIBURON, Calif.--(BUSINESS WIRE)-- Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced today its estimated graphics chip shipments and supplier’s market share for Q1’10.

For the year, 2009 came in above expectations with an 11% year to year growth, an amazing comeback. Q1 of 2010 showed traditional seasonal slowdown with everyone except Nvidia and SiS showing decline.

Table 1: Growth rates from 2003 to 2011
	2003	2004	2005	2006	2007	2008	2009	2010	2011
Total Graphics Chips:	217.1	239.0	269.4	316.5	351.7	373.0	414.2	485.7	567.9
Annual percentage growth	20.2%	10.1%	12.7%	17.5%	11.1%	6.1%	11.0%	17.3%	16.9%

Intel was the leader in unit shipments for Q1’10, elevated by Clarksdale, continued Atom sales for Netbooks, and strong growth in the desktop segment. On a quarter-to-quarter basis Nvidia gained in the notebook integrated, and discrete segments as well as the desktop integrated segment. AMD gained a fraction in the desktop discrete segment and over four percent in notebook integrated.

Table 2: Market shares
Vendor	This Quarter	Market share	Last Quarter	Market share last Qrtr	Growth Yr-Y
AMD	25.15	24.0%	26.81	21.7%	96.3%
Intel	45.49	43.5%	63.04	51.1%	22.3%
Nvidia	33.00	31.5%	32.70	26.5%	41.9%
Matrox	0.06	0.1%	0.05	0.0%	-7.7%
SiS	0.22	0.2%	0.06	0.0%	-68.6%
VIA/S3	0.71	0.7%	0.81	0.7%	-14.7%
Total	104.62	100.0%	123.47	100.0%	44.3%

AMD reported their graphics segment revenue for the quarter was $409 million, down from Q4’s $427 million and up significantly from a year ago ($218.).

Intel reported “revenue from chipset and other” of $1.761 billion in Q1.

Nvidia’s quarter, which straddles the calendar quarters reported revenues of $982 million for their Fiscal Q4’10 which is from September to the end of January. Their next quarter ends in April.

A new category - IPG

Q4’09 saw the first shipments of a new category, the Integrated Processor Graphics - IPG. With the advent of new CPUs with integrated or embedded graphics.We will see the rapid decline in deliveries for traditional chip-set graphics or IGPs (integrated graphics processors.) However for ease of reporting for now we’re including these devices in our Integrated numbers.

Mobile Devices and their Semiconductors

2010-04-06T16:13:23Z

New report from Jon Peddie Research looks at 10 unique markets for mobile devices

TIBURON, CA-April 5, 2010-Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced today its new report on mobile devices.

E-Books, tablets, slates, netbooks, notebooks, phones, and MIDS. – the mobile device market is fragmenting as low-cost, power-efficient processors emerge with advanced capabilities. Jon Peddie Research has released its latest market study -- a guide to ten markets for mobile devices and covers the application and multimedia processors designed for those handheld consumer devices. The markets covered are:

DAB-HD radio	Digital Picture Frames
Digital Still Cameras	e-books
MIDs & Gadgets	Mobile Game Console
Navigation	Personal Media Devices
Smartphones	Tablets & Smartbooks

The report provides an individual segment historical background of the market from 2006 and forecasts unit shipments for each individual market from 2009 to 2015.

The companies covered include:

Anyka	Broadcom	Freescale	Intel
Marvell	MediaTek	Mtekvisio	NEC
NetLogic	Nvidia	Qualcomm	Renesas
Samsung	Sigma Design	ST-Ericsson	Telechips
Texas Instruments	Wondermedia	Zoran

The total available market (TAM) for these multifunctional devices is almost 700 million units in 2010, growing to over 1.3 billion by 2015, representing a CAGR of 14.3%.

	2009	2010	2011	2012	2013	2014	2015	CAGAR
Total Device Shipments	597.4	682.9	771.8	881.9	1,014.7	1,164.7	1,335.1	14.3%

The market for eBooks, tablets, smartphones and other mobile consumer products is exploding and with the recession behind us the consumer is ready to start spending again.

This report is written for:

Senior management who are looking for adjacent market opportunities for their products
Financial analysts who want to understand the mobile device space better and look at companies and their chances of success
Marketing staff at companies that sell mobile products that work with mobile devices
Technology professionals who want an introduction to mobile technology and mobile devices
Engineers who need to select a processor for a mobile device
Press and public relations professionals who need to get up to speed on the mobile devices market, players, and products

This report has been created as a resource to uncover the opportunities for semiconductor suppliers and their IP partners who traditionally have served the non-PC and industrial markets such as POS, medical, and test equipment and to help them extend their technology into what we are calling the “adjacent consumer markets” with a focus on mobile devices for consumers.

Prices:

1 - 5 user PDF team license: $1,395 USD
Full site license: $2,500 USD
Prices do NOT include VAT or sales tax

Purchasers of this report may also be interested in the companion report, “Suppliers of Low Power GPU and IP: Strengths, Weaknesses, Opportunities, and Threats.”

Discounts for a bundled sale are offered.

Jon Peddie Research Surveys PC Gaming Hardware Market and Calculates Worldwide DIY / Upgrade TAM

2010-03-24T15:51:11Z

TIBURON, Calif. - March 23, 2010 - Jon Peddie Research estimates 46% of the dollars spent in 2009 on gaming motivated PC hardware were directed toward what the firm calls the Enthusiast class. This is the top-of-the line stuff: boutique PCs, high-end processors and graphics cards, SSD's, specialized gaming mice, keyboards, speakers, monitors, etc.

JPR is forecasting a shift in product mix demand as the worldwide PC gaming user base continues to increase in size. By 2013 the Enthusiast class will lose market share to the Performance and Mainstream classes from 46% to 35% of dollars spent. The good news for Enthusiast hardware producers is that this "market share shrink" occurs in an expanding market and expenditures on the Enthusiast class will grow from $9.5 billion to almost $12.5 billion in 2013.

Ted Pollak, Video Game Industry Analyst for JPR, cites a number of influences for this phenomenon. "PC hardware has caught up to most of the software and people are able to play computationally intensive games on Performance level systems. Performance systems now even support high resolution for all but the most demanding simulations and first person shooters. The frequency of Direct X updates is also driving some people toward mid-range GPU's. Some gamers are swapping out their Performance GPUs more frequently to engage the latest Direct X version, rather than making longer term investments in Enthusiast GPU's."

Despite this phenomenon, the high end will always be a good market. There is a style element to the Enthusiast class as well as what we call a "muscle car element". Enthusiast level hardware purchasers will spend hundreds, sometimes thousands more, to maximize gaming performance, and have the cutting edge of engineering and technolgy such as S3D (stereovision) and HD 120 Hz monitors.

Jon Peddie, President of JPR, noted that for all levels of hardware "gamers are ordering, building, and modding their rigs with components that just a few years ago were simply not available with any economy of scale. SSD's, water cooling, gaming mice and keyboards and other components have come to the Performance class and gamers are starting to snap them up. "

Do-It-Yourself System and Upgrade Market
In addition to the PC Gaming Hardware Market Report, JPR has just released a Global Market Analysis for Do-It-Yourself (DIY) PC builds and PC upgrades. The market is significant with approximately $10.4 billion in sales annually. This total addressable market estimate goes beyond video games and includes all purchasing motivation, including business applications.

The analysis includes estimates of refresh cycle rates for System Integrated PCs, Gamer System Integrated PCs, DIY builds, and Gamer DIY builds. The DIY/Upgrade Market Analysis also estimates the number of DIYers, the number of PC's upgraded annually, the System Integrated/DIY ratio, and a component ASP analysis for Mainstream, Performance, and Enthusiast DIY builds.

The Workstation Market Takes Another Sizeable Step Forward in Q4’09, says Jon Peddie Research

2010-03-01T15:45:40Z

TIBURON, Calif- March 1, 2010 -- Jon Peddie Research (JPR) reports robust results for the workstation and professional graphics markets in Q4'09, as the industry successfully plowed ahead, anxious to put the misery of late 2008 and early 2009 further behind. The multimedia and graphics research firm has completed its analysis of the workstation and professional graphics markets and reports that the quarter saw another solid round of gains, building off the upward trend started in Q3. All told, the industry shipped 716.9 thousand workstations in the fourth quarter, resulting in an 11.2% sequential increase.

Table 1 Total workstation market (worldwide, in K units) (Source: Jon Peddie Research)
Workstation shipments	Q3CY08	Q4CY08	Q1CY09	Q2CY09	Q3CY09	Q4CY09
Total (K units)	854.2	764.3	576.7	602.1	644.6	716.9

Even better, workstation ASPs finally managed a modest, but very perceptible 3.6% uptick in Q4, a gain the firm traces in part to improved confidence and looser purse strings, and in part simply as the not-quite-equal reaction to the more dramatic deflation in prices seen in the immediate aftermath of the economic downturn. Healthier ASPs meant the industry got to enjoy the relatively rare event of seeing units outpaced by revenue, which rose an estimated 15.2% sequentially to $1.43 billion.

Dell manages to climb back up to parity with HP

In Q3'09, HP overtook Dell in workstation unit volume, staking its claim as the new workstation market leader. Clearly, Dell hadn't taken its demotion lightly, instead digging in its heels to raise its fourth quarter unit share back up 1.5 points, in the process moving back into a virtual dead heat with HP.

The professional graphics market unexpectedly hot in Q4'09

Simply put, the professional graphics market in the fourth quarter posted results significantly hotter than expected, with units (mobiles included) up 53.3% year-over-year and revenue (add-in cards only) close behind at 41.1%.

The market for professional graphics parallels the workstation market, with the former's performance often providing an effective leading indicator for the latter's. And that bodes well for workstations in 2010. Because if the numbers for workstations in Q1'10 look anything like those posted by professional graphics in Q4'09, they should exceed all but the most optimistic of OEMs' expectations.

Astounding year-to-year growth in PC graphics; Quarter-to-quarter also beats expectations

2010-01-26T17:10:42Z

TIBURON, CA-January 26, 2010 - Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced today its estimated graphics chip shipments and suppliers' market shares for Q4'09.

Figures for the year 2009 came in above expectations with a 14% year to year growth, an amazing comeback, in this year of retrenching and recession

Table 1: Growth rates from 2002 to 2011
	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Total Graphics Chips:	180.6	217.1	239.0	269.4	316.5	351.7	373.0	425.4	544.0	600.1
Annual percentage growth	20.6%	20.2%	10.1%	12.7%	17.5%	11.1%	6.1%	14.0%	27.9%	10.3%

Intel was the leader in Q4'09, elevated by Atom sales for netbooks, as well as strong growth in the desktop segment. AMD gained in the notebook integrated segment, but lost some market share in discrete in both the desktop and notebook segments due to constraints in 40nm supply. Nvidia picked up a little share overall. Nvidia's increases came primarily in desktop discretes, while slipping in desktop and notebook integrated.

Vendor	This Quarter Market share	last Quarter Market share	Unit Growth Qtr-Qtr	This quarter last year Market share	Growth Yr-Y
AMD	19.9%	20.1%	13.6%	19.3%	91.5%
Intel	55.2%	53.6%	17.9%	47.7%	114.7%
Nvidia	24.3%	25.3%	10.2%	30.6%	47.3%
Matrox	0.0%	0.0%	66.7%	0.1%	-16.7%
SiS	0.0%	0.3%	-81.8%	1.1%	-92.5%
VIA/S3	0.6%	0.7%	-3.9%	1.2%	-9.5%
Total	100.0%	100.0%	14.7%	100.0%	85.7%

AMD reported revenue of $427 million from their graphics segment for the quarter, up 40% sequentially. AMD's graphics segment reported an operating income of $53 million, a substantial improvement from the prior quarter.

Intel reported revenue from chipset and other revenue of $1.877 billion in Q4.

Nvidia's quarter, which straddles the calendar quarters reported revenues of $903 million for their Fiscal Q3'10 which is from August to the end of October. Their next quarter ends in January.

A new category - CIG
Q4'09 saw the first shipments of a new category, the CPU-integrated graphics - CIG. With the advent of new CPUs with integrated or embedded graphics, we will see a rapid decline in shipments of traditional chip-set graphics or IGPs (integrated graphics processors.)

Pricing and Availability
The Q4'09 edition of Jon Peddie Research's Market Watch is available now in both electronic and hard copy editions, and can be purchased for $995. 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 $3,500 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. For information about purchasing Market Watch, please call 415/435-9368 or visit the Jon Peddie Research website at http://www.jonpeddie.com.

New JPR Study Demystifies Social Networks: What They Are, How They Work, How to Exploit Them

2009-12-10T16:18:17Z

Report shows how fast, efficient and inexpensive Social Networking is changing consumers’ behavior and offers insight into new opportunities to reach them

TIBURON, CA-December10, 2009-Jon Peddie Research (JPR), the industry's research and consulting firm for multimedia, today announced a new study on the Social Networking phenomenon and shows readers how to benefit from participating in it. The Social Web and its Implications: How “going social” changes everything about the Internet illuminates the subject in ways that inform both strategic and tactical users, and provides guideposts for further exploration and exploitation by the reader.

“This is not just another study on how to use Twitter and Facebook for marketing. Instead, we hope to instill a broad understanding of the entire landscape,” said Dr. Jon Peddie, president of Jon Peddie Research.

Word of mouth has proven to be the best sales tool, and social networks are the fastest and most far-reaching word of mouth mechanism ever seen. The growth of social networking has been astounding, demonstrating a pent- up demand for fast, efficient and inexpensive way of communicating and interacting. It also demonstrates a higher degree of technical savvy by users than was originally thought. Both are important signs for marketing and manufacturing organizations that want to know their customers better and tap into social pools to leverage recommendations, address criticism and head off rumors.

“The Social Web is not a fad; it is a fundamental shift in how humans communicate, interact, collaborate, create, inform themselves, prioritize, organize, buy, sell and play. It is your customers, your friends, your family, your employees, your constituents, your shareholders, and, like it or not, you,” said Brad DeGraf, the report’s author. “The word ‘viral’ hardly existed in our vocabulary before social media. Now it’s in constant use without the slightest reference to illness,”

The Social Web and its Implications: How “going social” changes everything about the Internet provides the following:

A high-level survey of the major societal and economic effects, the key concepts and impacts, the major players.
A thorough inventory of the full range of major behaviors/uses.
A broad collection of useful statistics that help answer some frequently-asked questions.
Detailed analysis of one representative application, Twitter.
Guidance for further exploration and research, hyperlinked liberally.

JPR uses the term “social media” broadly in order to include all related applications, trends, and practices, e.g. social networking, collaboration, user-generated content, and analytics. The report uses the term “social Web” relatively interchangeably with “social media” to emphasize the human element.

Why care?

Short answer: if you don’t master it, your competition will. Social media infants like Twitter and Facebook are the little furry creatures running around the feet of dinosaurs eating their eggs. Craigslist, for instance, is commonly blamed for the demise of newspapers, replacing their $100 billion in classified ad revenue with its reported $100 million revenue according to the Classified Intelligence Report by media consulting firm Advanced Interactive Media Group.

Social media represents a transformative new channel to listen to and communicate with customers, stakeholders, media, peers, and other influencers. Conversations are taking place about your company, product, and service, right now, with or without you. Social media provides rapidly evolving channels through which new classes of “influencers” communicate.

The Workstation Market Regaining its Health, but the Road to a Full Recovery Won’t be Short

2009-12-04T17:43:14Z

The Workstation Market Regaining its Health, but the Road to a Full Recovery Won’t be Short: Jon Peddie Research

TIBURON, Calif— December 3, 2009. So far, the second half of 2009 for the workstation market is proceeding according to the script Jon Peddie Research (JPR) had written several quarters ago. A recovery is surely taking hold, but rather than the fast and furious type, it’s shaping up more as the slow and steady variety.

Q3’09 wasn’t a gangbuster quarter for the industry, but then it wasn’t expected to be. What JPR did predict was that the quarter would affirm two things: one, that the market did indeed bottom during the first half of 2009, and two, that the second quarter’s modest uptick wasn’t an aberration. And on those counts, the third quarter of 2009 came through, delivering modestly better results than did Q2. All told, the industry shipped 644.6 thousand workstations, resulting in a 7.1% sequential increase over the second quarter (and a more moderate 24.5% year-over-year decline).

(Source: Jon Peddie Research)
Workstation shipments	Q2CY08	Q3CY08	Q4CY08	Q1CY09	Q2CY09	Q3CY09
Total (K units)	867.4	854.2	764.3	576.7	602.1	644.6

Table 1 Total workstation market (worldwide, in K units)

The third quarter’s growth was of course welcome, but certainly doesn’t signal an imminent return to the robust market levels of 2007 and 2008. Rather than making a dramatic stride forward, it instead marked one small step on what’s more likely a prolonged road to recovery. The way it’s panning out, the climb back up will take a lot longer than did the fall down.

HP stakes its claim as the top workstation provider/p>

It was just a matter of time. One look at the market share trend lines, and it wasn’t a stretch to envision HP some day overtaking Dell as the volume leader in workstation market. In just a few short years, HP had climbed from a distant second in the market into a virtual dead heat with the long-time leader. But in the third quarter, HP jumped to a 40.3% market share, in the process pulling away from Dell (at 37.5%) to mark the first time (in the firm’s records) HP has held clear control as the volume leader.

It’s been a dramatic reversal of fortunes. Looking back five years, Dell looked poised to dominate the workstation market by a wide margin. But then triggered (in part) by its long-standing strategy to stick exclusively with Intel rather than exploit upstart AMD’s surging workstation/server platform, Dell saw its workstation share steadily drop to a low of 37.7%.

When Intel finally bounced back, so did Dell, though without quite the same gusto. Because even though Dell had regained its footing, HP had been pressing its foot firmly on the gas and coming up fast in Dell’s rear-view mirror. And finally in the third quarter, HP surged past to claim the position of sole market leader, in the process pushing Dell’s share back down to its historical low.

PC Gaming Hardware Forecast to Reach $27 Billion in 2010

2009-11-19T17:02:40Z

PC game market exits the recession in time for the holidays

TIBURON, CA- November 19, 2009 -Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, today announced the market forecast for PC gaming hardware, and the results are better than previously expected.

The worldwide PC gaming hardware market (systems, accessories, and upgrades) is forecasted to gain $1.2 billion for 2009, which is a 5.9% increase versus 2008 (from $20.07 to $21.26 billion). The increase is due to higher than anticipated consumer demand for Enthusiast, Performance, and Mainstream hardware influenced by the ability to play video games ranging from casual to hardcore simulations.

Due to significant growth across all major markets the worldwide PC gaming hardware market is expected to skyrocket 30% in 2010. Senior Video Game Industry Analyst at JPR, Ted Pollak, credits this growth to a number of factors. “The largest influence on the high forecasted growth rate is due to purchasing delays for systems and upgrades in 2008/2009 as consumers circled the wagons and took a conservative position on discretionary spending. A recovering economy, processing advancements, and higher quality gaming offerings will all contribute to a healthy year for PC gaming hardware in 2010.”

Year	2008	2009	2010	2011	2012
Total PC Gaming Hardware Market	$20,076	$21,260	$27,617	$32,749	$34,760

“The PC gaming market continues to be the high growth, and technological leader for home entertainment. With Windows 7 and DirectX 11, advanced and exciting physics, and stereovision capabilities, the PC platform is far and away the most advanced,” noted Jon Peddie President of Jon Peddie Research. “And, the PC has the added advantage that when not used for gaming, it can be used for more practical purposes, and/or as a media center.”

JPR uses a complex methodology to pinpoint the true global TAM (Total Addressable Market) for PC gaming hardware, which is no easy feat given the multi-dimensional nature of personal computers. The result is a report series which is the most accurate in the world and available by segment (Enthusiast, Performance, and Mainstream) for companies that are not focused on all levels of PC gaming. The report covers all major regions and provides detail for the top 37 countries.