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Graphics Chip Market In Worse Year Ever

Graphics take a hit in 09 — come blazing back in 2010 According to Jon Peddie Research

The worst is over
Jon Peddie Research (JPR), the industry’s research and consulting firm for graphics and multimedia, today announced estimated global graphics chip shipments for 2009 will see the worst ever year-over-year drop in shipments. The decrease in shipments for 2009 will be even worse than the 2000-2001 recession. However, 2010 promises an amazing comeback.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Graphics Chips: 180.6 217.1 239.0 269.4 316.5 351.7 373.0 328.4 398.9 446.8
Annual percentage growth 20.6% 20.2% 10.1% 12.7% 17.5% 11.1% 6.1% -12.0% 21.5% 12.0%

Table 1: Growth rates from 2002 to 2011

Graphics chip shipments are a leading market indicator — the graphics chips go to the ODMs and OEMs, which then build and ship PCs.

Taking together our data, interviews with suppliers, and world economic forecast models, we believe the worst is over and Q3 will show recovery leading all the way through 2010, subject to seasonal adjustments.

Portable devices such as notebooks, laptops, and netbooks will be the strong, but they will not overwhelm desktops which are still the preferred choice of platform for the power users and professionals.

Architectural changes like Intel’s Nehalem and new product introductions from AMD, ATI, Intel, and Nvidia are going to be disruptive to the status quo and traditional market share of the suppliers. The continued expansion and development of heterogeneous computing and GPU compute will stimulate growth in 2010 enabled by Apple’s and Microsoft’s new operating systems.

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New programming capabilities using OpenCL, DirectX 11, and Nvidia’s CUDA architecture will remove barriers to the exploitation of the GPU as a serious, economical, and powerful co-processor in all level of PCs.

The net result is a new PC environment starting in Q3, and this new environment will have a beneficial impact on computing in 2010 onward.

About Jon Peddie Research
Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California. JPR provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie’s Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.

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