NVIDIA suffers massive GPU market share slide

NVIDIA suffers massive GPU market share slide

Summary: Chip maker NVIDIA saw a massive GPU market share slide during Q1 '11 according to estimates released by graphics research and consulting firm Jon Peddie Research.

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Chip maker NVIDIA saw a massive GPU market share slide during Q1 '11 according to estimates released by graphics research and consulting firm Jon Peddie Research.

The estimates show NVIDIA sliding over 28 percent, year-on-year. Where there are losers, there are winners. Jon Peddie Research predicts that AMD has seen its market share by over 15 percent, while Intel has seem a market share growth of just under 10 percent.

Not only has NVIDIA slid well into third place, if this latest data is correct, NVIDIA is rapidly sliding out of the game. Sure, it has been a tough quarter for the PC sector, with shipments slipping 5.4 percent, but a slid of this magnitude means that NVIDIA has problems.

So, what's gone wrong at NVIDIA? Well, the company did have that GPU overheating debacle back in 2008, which shook OEM and consumer confidence. Then NVIDIA got ousted from Apple hardware (which was bad for NVIDIA because while the PC market was shrinking, Apple was experiencing a growth spurt).

NVIDIA needs to regroup before its market share slides even further.

[UPDATE: This in from an NVIDIA spokesperson:

The topline report only covers overall graphics shipments, which is no longer a relevant metric for NVIDIA since we exited the chipset business. Jon Peddie and Dean McCarron of Mercury Research both indicate that the reason for NVIDIA's decline in overall share is simply because we no longer compete for integrated graphics.

NVIDIA competes in the discrete graphics market, where we remain the market leader with more than 50% market share. We have a strong position in the desktop market, particularly in the high-margin segments, where our DX11 desktop GPUs are experiencing rapid growth. In discrete notebook graphics, we're at the beginning of a significant share gain, as the industry transitions to Sandy Bridge.

It's a fair point, but it still doesn't convince me, and here's why. First off, integrated graphics are in because integrated means cheap and right now cheap sells. Integrated will become even more important as AMD and Intel increasingly make "GPUs on the CPU' a norm. This still leaves room for discrete, but that sector will undoubtedly shrink.

Another issue here is that I see the discrete GPU market shrinking as the gaming PC (which needs a new graphics card at least once a year if you want to keep up) gives further ground to the games console. Relying of discrete graphics, in particular high-end, high margin is dangerous when money is tight and consoles are cheap.]

Topics: Processors, Hardware, Networking

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44 comments
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  • What about no X86 related devices ?

    I think that Nvidia is also focusing on smartphones , tablets and no X86 computers (Tegra and upcoming Denver anyone ?). So while talking of Nvidia one should also consider mobiles devices and ARM based PC where Nvidia should be a much major actor than both Intel and AMD.
    timiteh
    • RE: NVIDIA suffers massive GPU market share slide

      @timiteh

      Exactly, with AMD and Intel squeezing them out by making chipsets with embeded video, ARM/tablet/Android is a smart and perhaps only growth area for them.

      I don't buy computers without NVIDIA graphics anymore because they are the only ones that have never given me fits with drivers. I'm not a gamer so the bleeding edge is not important to me.
      wkulecz
      • RE: NVIDIA suffers massive GPU market share slide

        @wkulecz <br><br>Decent drivers are also the reason I switched to NVIDIA when my previous video board went up in smoke. I hope they stay in the video card business.
        johnmaar
      • RE: NVIDIA suffers massive GPU market share slide

        @wkulecz Yea but their chips burn out.
        Jimster480
      • RE: NVIDIA suffers massive GPU market share slide

        @wkulecz Ditto. I don't buy AMD graphics for the same reason - massive and ongoing driver issues I've experienced in the past with their products. I only buy NVIDIA.

        Regarding these numbers, they exactly reflect the fact that NVIDIA only competes in discreet graphics now. These numbers don't worry me a bit. When I buy another graphics card, it will be NVIDIA. If you look, the AMD numbers also reflect their new affiliation with Apple as an integrated chipset supplier. NVIDIA still owns discreet.
        BillDem
      • RE: NVIDIA suffers massive GPU market share slide

        @wkulecz +1

        For good video and 3D performance on Linux, NVIDIA is the only choice.

        Unfortunately for NVIDIA, the $35 GeFoce 210 is more than adequate, taking full advantage of their binary driver and VDPAU.
        Media Whore
      • RE: NVIDIA suffers massive GPU market share slide

        @wkulecz

        Yup, ATI could learn a lot from these guys. NVIDIA was always a easier more stable solution. ATI/AMD was always problematic for me.
        Kabcock
  • RE: NVIDIA suffers massive GPU market share slide

    This is just a lot of negative hype and rhetoric aimed at market manipulation. When you consider ALL the different areas, that this world class leader (NVIDIA) has it`s hands in, you will find that,over all ,the company has a very solid balance sheet and is growing, unlike the negative doom and gloom which aims to taint this company`s reputation, with trashy articles,such as this one. I also always buy computers and devices making sure they have Nvidia GPUs in them, because of their superior,crystal clear image reproduction.
    catsrevenge
    • So is the data above, false?

      Or is this just a sales pitch?
      ScorpioBlue
    • RE: NVIDIA suffers massive GPU market share slide

      @catsrevenge
      "I also always buy computers and devices making sure they have Nvidia GPUs in them, because of their superior,crystal clear image reproduction."

      Well now, there's a bias if I ever saw one.
      Really, the "image reproduction" quality of AMD vs NVIDIA, is for all intents and purposes, equivalent. Any minute differences that could be found, if any, would be academic at best and is nothing anybody would notice under normal usage patterns.

      I agree though that this article has a negative slant and probably does not show the whole picture concerning NVidia operations.
      F.Gaudet
      • BMW must be &quot;BIAS&quot; as well...

        @F.Gaudet@... Absolutely, that is my basic point here,all All of these little, negatively slanted articles are a potential detriment ,to an otherwise solidly sound company, and I find abhorrent. And please forgive me if I sound at all bias, however no one ever paid me to believe in products which I find to be superior. The proof is in the products themselves. Otherwise, I guess that BMW is for some reason bias as well, by recently contracting Nvidia, to have it`s factory installed GPS s include Nvidia`s GPUs
        best wishes....
        catsrevenge
      • If you really believe Nvidia is above criticism...

        ..then I have a bridge to sell you. Everything here is open game. They can build occasional junk just like anybody else.
        blind obedience
  • Well, what did they expect?

    Sure their products were marginally more powerful, but even the most hardcore of gamers aren't idiots. The value was unbelievably bad. When there's only two players in the game, one of them can't play the role of "stupidly-expensive for 3% more performance".
    Naryan
  • Overheating Debacle &quot;Shook Confidence&quot;???

    How kind! It bricked my laptop. NVIDIA lied, stonewalled, and tried to weasel out of doing the right thing. This just may be capitalism at it's finest. I'm fairly praying to any god of fairness to let me watch NVIDIA's market share slide into....the abyss.
    wmyers822
    • RE: NVIDIA suffers massive GPU market share slide

      @wmyers822 ditto- soldered-on nVidia ruined my high-end gaming laptop.
      davidjmcclelland
    • RE: NVIDIA suffers massive GPU market share slide

      @wmyers822 Then watch as a monopoly ensues and you'll be even happier at how a monopoly drives the tech market... wait, it doesn't. We've all benefitted from the battles between Nvidia and ATI and I've gone back and forth showing no discernible bias, although I have to say the last 'good' ATI card I had was the 9800pro.
      mhanna87
  • Hey, they're smarter than RIM

    This was inevitable once AMD bought ATI. To their credit, they saw The Hammer on the way and took steps to be over to the side when it went by.

    They've built a nice little business for themselves making ARM chips, and they're well-positioned to make integrated CPU+GPU offerings for the mobile market. Their alternative was to sit there and die, so if in the short run they take a hit while they flesh out their mobile offerings, so be it.
    Robert Hahn
  • RE: NVIDIA suffers massive GPU market share slide

    ARM is the future. They should get on that bandwagon and run hard, as AMD and Intel are power hogs.
    Malcolm in St Louis
    • RE: NVIDIA suffers massive GPU market share slide

      @Malcolm in St Louis They've been working on that for a while. Where have you been? Look up Tegra if you're curious.
      snoop0x7b
    • RE: NVIDIA suffers massive GPU market share slide

      @Malcolm in St Louis - you need to read-up on Intel's announcement today about it's new 22nm 3D-gate technology which could well propel Intel down into ARM's performance per watt arena.
      bitcrazed