Intel's legal issues help AMD gain in graphics market

AMD also gained on record product shipments in Q2

Record product shipments and Intel's legal issues helped Advanced Micro Devices gain share in the graphics market during the second quarter, market analysis firm Jon Peddie Research said on Friday.

Intel maintained its lead in the shipment of graphics products with a 54.9 percent market share during the second quarter, growing from 51.1 in last year's second quarter. But AMD took advantage of Intel's legal issues and Nvidia's weak product execution to gain market share, said Jon Peddie, president of Jon Peddie Research (JPR).

AMD product shipments grew by 32.6 percent year-over-year, compared to Intel's 7.6 percent growth in shipments. AMD's market share went up to 24.4 percent from 18.4 percent last year, driven by the "biggest gains for both discrete and integrated desktop products in the company's history," Peddie said. AMD offers graphics products under the ATI brand.

AMD may have also gained ground on Intel's legal troubles, Peddie said.

"I think it ... freed up a lot of management time to take care of business, and it took the restraints off the PC makers to make a choice based on price performance," Peddie said.

Intel's modest growth in the graphics market was driven by growth in desktop, laptop and netbook CPUs, which integrate graphics capabilities. But the chip giant has came under scrutiny for monopolistic behavior to shut out rivals like AMD and Nvidia. The European Commission in May last year fined Intel €1.06 billion (US$1.45 billion at the time), and the New York attorney general filed a case against Intel in November. Intel also paid AMD US$1.25 billion last year to settle antitrust and patent disputes.

The U.S. Federal Trade Commission (FTC) filed a complaint against Intel in December, charging Intel with illegally using its dominant position to stifle competition. Most of the investigations against Intel have revolved around CPUs, but the FTC expanded the scope of the complaint to include Intel's practices in the graphics-processor market.

But both Intel and AMD gained at the expense of Nvidia, whose year-over-year shipments dropped 32.4 percent. Nvidia's market share also fell to 19.7 percent during the second quarter from a 29.2 percent market share a year ago. Nvidia has had troubles as consumers shift to lower-priced GPUs and integrated graphics, and AMD is ahead in the release of graphics products that support Microsoft's latest DirectX 11 technology.

"Nvidia had some startup problems with Fermi, which gave ATI more running room," Peddie said. Fermi is Nvidia's latest graphics-processor microarchitecture that offers support for DirectX 11. The company released its first Fermi-based graphics card earlier this year, while AMD started offering DirectX 11 cards last year.

Nvidia on Wednesday lowered its second-quarter revenue expectations, blaming higher memory costs. PC makers are sacrificing components like discrete graphics cards for memory to offer competitively priced laptops.

JPR projected shipment of graphics products -- including integrated and discrete graphics -- to reach 525 million, growing 26.8 percent compared to last year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags intelnvidiaComponentsAdvanced Micro DevicesGraphics boards

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?