Overall PC Graphics Shipments Sequentially Down in Q1 with Mobile Graphics Claiming Record Share

TIBURON, CA—April 26, 2005—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 first calendar quarter of 2005. Detailed first-quarter results
are available in the Q1’05 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 60.2 million PC graphics
devices shipped from eight suppliers in Q1’05, a 6.2% decline
from the previous quarter and a 4.9% increase over the same period the
previous year. The desktop graphics segment saw a 7.9% decline in quarterly
shipments with discrete desktop shipments falling 8.2% sequentially.
Integrated desktop shipments fell 7.8% on a quarterly basis.

ATI maintained its lead in the discrete desktop segment during Q1’05
by a margin similar to that of the fourth quarter. ATI’s discrete
desktop shipments declined 9.0% sequentially and its share in the segment
fell slightly from 51.9% in Q4’04 to 51.4% in Q1’05. Nvidia’s
discrete desktop shipments declined 8.0% sequentially and its segment
share was essentially flat, growing from 46.7% to 46.8% during the same
period.

JPR estimates that 14.6 million mobile graphics processors shipped from
six suppliers in Q1’05, down a mere 0.2% from the previous quarter
and up 40.8% year-over-year. Mobile graphics held a record 24.4% share
of the total graphics market during the period. Shipments of integrated
graphics chipsets for notebooks outpaced those of discrete (stand-alone)
mobile graphics processors in Q1’05, showing sequential growth of 12.6%
and annual growth of 71.2%. Discrete mobile controller shipments fell
15.8% sequentially but grew 9.1% year-over-year.

Intel surpassed ATI as the largest PC graphics supplier to the mobile
market in the first quarter with its share growing from 39.5% to 50.8%
sequentially. ATI’s share fell from 42.9% in Q4’04 to 35.5% in Q1’05.
ATI’s loss of share came on increased shipments from Intel of integrated
chipsets for notebooks. During the quarter, Intel launched its mobile
915 PCI Express chipset (formerly code-named Alviso) with integrated
graphics based on the GMA900 engine and subsequently saw its mobile
chipset shipments increase 28.4% sequentially and 148.3% year-over-year
during the period.

“Although an industry slowdown in
the first quarter is typical and to be expected, the mobile segment
and Intel in particular displayed strong performance,” said Lisa
Epstein, a senior analyst at Jon Peddie Research. “The mobile segment
did not slow during the period, with strong shipments that, relative
to the desktop segment, led to record share of the total graphics market.
This dynamic was driven exclusively by shipments from Intel of its new
GMA900-based 915 IGC for mobile PCI Express platforms. Intel’s
steep ramp of this new Pentium M chipset contributed to phenomenal growth
in the mobile IGC segment during the quarter,” Epstein concluded.

Intel saw a 0.6% sequential increase in graphics shipments in Q1’05,
was the largest supplier of PC graphics devices worldwide, and claimed
an increased share of the total graphics market. ATI remained the second
largest supplier in Q1’05 with an 11.3% sequential decline in shipments
and reduced share of the total graphics market. Nvidia was the third
largest supplier in Q1’05, with a 9.7% sequential decline in shipments
and reduced market share. The following table lists the ranking and
relative market share, based on unit shipments in Q4’04 and Q1’05, of
the eight major graphics suppliers to the PC industry.