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Rise of tablets affects chip shipments

Totals have fallen one percent in Q3’10 from Q2'10

Rise of tablets affects chip shipments
According to Jon Peddie Research overall graphic chip shipments are down this quarter.

Overall graphics chip shipments have fallen one percent in Q3'10 from Q2'10, according to Jon Peddie Research (JPR), the research and consulting firm for graphics and multimedia.

The company have just released their estimated graphics chip shipments and supplier's market share for Q3'10.

JPR attributes the fall in shipments to an 8.4% drop in notebook sales, as desktop sales increase 8.4%.

The company says this fall in notebook sales could be attributed to the rise of the iPad and other tablets.

However, total worldwide graphic chip shipments were up by 10% in Q3'10 from Q3'09, with Embedded Graphics Processors from Intel showing the strongest increases of 50% in Q3'10 from Q2'10.

JPR says all vendors experienced market shifts, including AMD, whose market share slip from 25% in Q2'10 to 22.3% in Q3'10, they attributed to OEMs letting their GPU inventory run down so as not to have leftover stock.

Some of AMD's customers shifted their purchases to rival Nvidia after perceived stock shortages. AMD graphics revenue decreased 11% sequentially but increased 33% year-over-year.

Intel reported increases in revenue of 70 million in Q3'10 from Q2'10. Their market share increased from 53.4 in Q2'10 to 55.6% this quarter.

Observers are attributing Intel's 4% Atom processor revenue drop in Q3 from Q2, to tablet cannibalisation.

"No one knows how much cannibalisation there is in tablets," said Intel President and CEO Paul Otellini, "but the numbers are relatively small."

The company announced new chips specifically for tablets in June; they are scheduled for release in 2011.

Nvidia's fiscal year straddles the quarters and ends in October 31, but at the moment, their results are showing a growth decline of 16.1% year on year.

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