JPR: Q2 PC Graphics Shipments Down 4.6% Sequentially, Rise 16.6% Year-Over-Year

TIBURON, CA—July 31, 2006—Jon Peddie Research (JPR), a leading research and
consulting firm for graphics and multimedia, today announced estimated graphics
shipments and supplier market share for the second calendar quarter of 2006.
Detailed second quarter results are available in the Q2’06 edition of Jon
Peddie’s Market Watch, the firm’s
quarterly graphics survey. Market Watch provides an in-depth look at the PC graphics market and includes unit shipment
and segment market share data, trend analysis, shipment forecasts, and profiles
of major suppliers.

Jon Peddie Research estimates
that approximately 71.4 million PC graphics devices shipped from major
suppliers in Q2’06, a 4.6% decline from the prior quarter and a 16.6% increase
over the same period the previous year. The desktop graphics segment saw
shipments fall 7.0% from Q1’06 to Q2’06 but shipments grew 11.6%
year-over-year. Integrated desktop shipments dropped 7.1% sequentially but
increased 14.7% annually. Discrete desktop shipments fell 6.8% on a quarterly
basis and grew 7.0% year-over-year.

The mobile graphics segment saw
quarterly shipments rise 2.2% and grow 31.9% year-over year. IGC shipments
drove growth in the mobile market in the second quarter and integrated mobile
was the only graphics segment to exhibit sequential growth during the period.
Integrated mobile shipments rose 4.2% sequentially and grew 47.1% annually.
Discrete mobile shipments fell 3.5% during the quarter and grew just 0.8%
compared to the same period the previous year.

JPR estimates that a record 19.6
million mobile graphics devices shipped in Q2’06, 14.7 million of which were
integrated chipsets for notebooks. Mobile IGCs claimed share of 75.0% in the
mobile graphics market, up from 73.5% share in the prior quarter and up from
67.3% share in the same period a year ago. Intel led the mobile graphics market
with 54.9% share, ATI held 31.0% share, and Nvidia followed with 10.9% market
share. In the discrete mobile segment, ATI saw shipments decline on a quarterly
basis while Nvidia saw shipments increase sequentially. Nvidia grew discrete
mobile segment share from 25.0% in Q1’06 to 36.7% in Q2’06. ATI’s segment share
fell from 74.6% in Q1’06 to 63.1% in Q2’06.

JPR estimates that approximately
51.7 million desktop graphics devices shipped in Q2’06, 32.1 million or 62.1%
of which were integrated parts. Overall, Intel claimed 34.8% of the desktop
graphics market, ATI held 26.3%, and Nvidia followed with 23.9% market share.
In the discrete desktop segment, Nvidia held 51.5% share and ATI claimed 47.9%
share during the period.

Intel saw a 1.5% sequential
decline in graphics shipments in Q2’06, was the largest supplier of PC graphics
devices worldwide, and claimed an increased share of the total graphics market
during the quarter. ATI remained the second largest supplier in Q2’06 but with
an 8.4% sequential decline in shipments and decreased market share. Nvidia was
the third largest supplier in Q2’06, with a 2.0% sequential increase in
shipments and increased market share. The following table lists the ranking and
relative market share, based on unit shipments in Q1’06 and Q2’06, of the major
graphics suppliers to the PC industry.