Featured Articles

IHS teardown reveals Galaxy S5 BOM

IHS teardown reveals Galaxy S5 BOM

Research firm IHS got hold of Samsung’s new flagship smartphone and took it apart to the last bolt to figure out…

More...
Galaxy S5, HTC One M8 available selling well

Galaxy S5, HTC One M8 available selling well

Samsung’s Galaxy S5 has finally gone on sale and it can be yours for €699, which is quite a lot of…

More...
Intel lists Haswell refresh parts

Intel lists Haswell refresh parts

Intel has added a load of Haswell refresh parts to its official price list and there really aren’t any surprises to…

More...
Respawn confirms Titanfall DLC for May

Respawn confirms Titanfall DLC for May

During his appearance at PAX East panel and confirmed on Twitter, Titanfall developer Respawn confirmed that the first DLC pack for…

More...
KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 gained a lot of overclocking experience with the GTX 780 Hall of Fame (HOF), which we had a chance to…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 16 July 2010 11:58

ATI wins DirectX 11 GPU market fight in 1H 2010

Written by Fuad Abazovic
ati_logo2009nvidia_black

Nvidia starting to catch up
Judging by the recently announced graphics results from AMD, it looks like the ATI part of the company has delivered some rather nice numbers. The company has sold 16 million Radeon HD 5000 series in the last three quarters.

This means that they have shipped 16 million DirectX 11 parts and that Nvidia probably managed only a few hundred thousand. So judging by number cards sold, ATI has won this round by a mile.

The second surprising part is that even today Radeon 5850 and 5870 cost as much as they cost six months ago when they launched. Although AMD has slightly reduced HD 5830 pricing in the short term we don’t see any major price cuts and Nvidia is surely catching up with Geforce GTX 400 series, but only in the $199 and up market. Bear in mind that this particular market segment is limited to a handful of people that are willing to pay such money for good graphics.

Nvidia's GF106 and GF108 a mainstream and entry level chips are to be expected in late summertime, let’s say August, and by that time, ATI will probably sell a few hundred thousand if not a million more HD 5000 series cards.

In its last quarter the company had reported revenues of $440 million and a quite miserable $33 million of profit, but a year ago they had revenue of $235 million and a loss of $17 million.

Nvidia is certainly limping with the number of DirectX 11 Fermi and similar parts sold, but overall Nvidia makes much more money with much higher average selling price for its GPUs.

Nvidia has Optimus and quite a strong following of people who want their GPUs and once they make a decent DirectX 11 mobile GPU, they will continue to grow in this market segment. ATI is doing purely in mobile computing and Nvidia as you should know by now makes a lot of money on professional CAD / CAM market and nowadays they make some decent margins selling GPUs for super computers.

Overall ATI wins this round, they could make better profits out of it but they own the DirectX 11 market. Nvidia still makes a lot of money with its outdated DirectX 10 cards, but they surely know how to sell them for much higher profit.  The biggest issue for Nvidia is that once they have the whole DirectX 11 line up, ATI will be ready to move to its second generation DirectX 11 product line.

Of course ATI can thank Nvidia for being late with Fermi, and even when the company launched it after six month delay, it was not as great as people have expected, but knowing Nvidia, once they fall on its face, they always tend to return stronger.

Last modified on Friday, 16 July 2010 15:45
blog comments powered by Disqus

Comments  

 
+29 #1 Alexko 2010-07-16 12:31
"The second surprising part is that even today Radeon 5850 and 5870 cost as much as they cost six months ago when they launched."

You mean 10 months ago, right?
 
 
+21 #2 Bl0bb3r 2010-07-16 13:16
Actually, they cost more than 10 months ago.

On techpowerup prices reported in the reviews for 5850 were $259 at launch, $300 in Jan and $310 to-date, so Fudo's basically right, give or take 10 bucks.
 
 
+5 #3 eXistential 2010-07-16 18:14
ATi Doesn't need a price drop since they are generally cheaper than Fermi as is. And Nvidia just needs time to get some good optimized drivers out then we can compare them. But still doesn't account for their high temperature and high power needs.
 
 
+12 #4 yourma2000 2010-07-16 19:09
The early bird gets the worm
 
 
+3 #5 blandead 2010-07-17 22:01
hopefully it stays this way with second gen ati dx11 and maybe a nice surprise with performance again
 
 
+3 #6 Fud_u 2010-07-17 23:32
Quoting yourma2000:
The early bird gets the worm


So are the existing bird if they bought a high end card because price won't likely to change maybe until the end of the year. Those HD5970 price is brutal.
 
 
+7 #7 GrapeApe 2010-07-18 06:39
Fudz Green-spin on things.

ATi wins DX11 race sofar... but nVidia has all this and that...

Seriously, is that always necessary Fudo?

"Nvidia has Optimus and quite a strong following of people who want their GPUs ..."

Yeah, they're called fanbois.

Optimus has not significantly improved nV's mobile situation, they still trail AMD so it's a non-issue, and major nV growth in that segment is unlikely when they only have Optimus, while both intel and AMD have X86/64 SOC solutions that take away the meat of the market from nVidia even competing.

You can't even congratulate AMD for planning in Evergreen only say that they should thank nV for Fermi. You know AMD stumbled with R600 this is their recovery, nV has a chance next Gen.
 
 
+4 #8 GrapeApe 2010-07-18 07:00
nV's supercomputing prowess is also over-stated, with alot more PR than anything.

They are enjoying a new exclusivity in the GPGPU HPC market, so in the terms you would put it, it's not because of nVidia, instead they should thank intel and AMD for any success they've had at trying to get a portion of that market, but of course that won't last long either once AMD and intel re-focus their efforts. :-*
 
 
+1 #9 blandead 2010-07-20 06:45
Quoting GrapeApe:
nV's supercomputing prowess is also over-stated, with alot more PR than anything.

They are enjoying a new exclusivity in the GPGPU HPC market, so in the terms you would put it, it's not because of nVidia, instead they should thank intel and AMD for any success they've had at trying to get a portion of that market, but of course that won't last long either once AMD and intel re-focus their efforts. :-*


The only good technology Nvidia has going for it is its 3d active shutter glasses. If AMD developed 3d active shutter glasses support in games and blu-rays that is also compatible with future tvs that are 3d-ready (120 hz) then I would never even consider buying an nvidia card again, also i still love badaboom.
 
 
-10 #10 SiliconDoc 2010-07-20 08:11
It's hilarious since ATI finally decided to spew out the fact that for the very first time in YEARS they pulled a teensy weensy tiny profit for just one quarter of 37 million dollars. LOL
Yes, that sure is "ruling" and "owning" "the dx11 market" which consists of maybe 2 or 3 games it's top 3 cards can actually make use of, with much less performance than Nvidia's top 4 cards, which are already outstripping ati's half year plus launch lead.
In other words, ATI is still pathetic, but not quite as pathetic as the 8 billion in debt AMD.
NVidia has 1.7 Billion to the good - an asset plus situation.
Keep whining, maybe some day ATI can have a teensy tiny profit at the end of a whole big year...
 

To be able to post comments please log-in with Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments