Powerful integrated graphics to blame
The add-in-board graphics market is continuing its downward spiral, fuelled by increasingly powerful integrated graphics and new consumer trends.
Jon Peddie Research reports that 2010 shipments of discrete graphics dropped by three percent compared to 2009. Mind you, 2009 was a very bad year in terms of shipments, thanks to the economic downturn. However, the AIB market has not shown signs of recovery. Analysts attribute the decline to increasingly powerful and prolific integrated graphics. The negative trend will only be compounded by the advent of graphics enabled processors, such as DirectX enabled AMD Fusion and Intel Ivy Bridge parts.
Despite the concerns, AMD can still say in had a very good year. On a year-to-year basis, the company managed to increase its share by 12.6 percent, while Nvidia lost 6.2 percent. Nvidia managed to turn the tide in Q4 and it managed to increase its share by 3.6 percent.
Professional graphics did rather well. Although no major increase in shipments occurred, the market recovered much faster than expected.