Astounding Revenue and Strong Unit Growth in Graphics Chip Market in 1998
Isn't that what i've saying for months
Astounding Revenue and Strong Unit Growth in Graphics Chip Market in
1998
TIBURON, CALIF. (April 15) BUSINESS WIRE -April 15, 1999--A newly
released report on the graphics chip and AIB (add-in board) market from
Jon Peddie Associates (JPA), entitled The Quarterly Report, estimates
total 1998 graphics chip shipments grew 21.7% over 1997, reaching 113.7
million.
However, (estimated) market revenues exploded by 39% over last year,
hitting over $2.4 billion.
ATI was the overall leader in unit shipments of chips (30%), followed
by S3 (21%). The total chip market includes both 2D (declining) and 3D
(increasing) controllers.
"The lower cost of high performance 3D graphics controllers brought
high-performance capabilities to a much broader set of users in 1998,"
said Dr. Jon Peddie, president of JPA. "The result has been a
significant increase in units shipped, and a tremendous increase in
overall graphic's chip revenue outpacing the rest of the semiconductor
industry," said Peddie.
For the second year in a row, the traditional 2D market declined in
both shipments and revenue, by 54% and 63% respectively over the
previous year. In 1998 total shipments were 24.5 million units and
total revenue was $196 million. JPA believes the decline in shipments
is attributable to the lack of significant investment in 2D chips by
companies in the U.S. and Asia and to some minor amount by the economic
problems in Asia.
However, the primary revenue decline resulted from lower average
selling prices due to the transition of the market to 3D. With
consolidation in the 2D chip market, Cirrus Logic, Trident, and SiS are
now the primary players.
3D chip shipments (89 million) grew by 116% over last year, and
revenues ($2.2 billion) increased by 84% from last year. ATI was number
one followed by a revived S3. Matrox held a strong third position and
Nvidia with great growth through the year hit fourth place. Intel,
which entered the market in 1998, ended up with 1% of the overall
market, and 1.4% of the 3D chip market. The overall 3D market data
includes all generations of 3D controllers being shipped.
High performance 3D chips had the greatest growth in units putting
companies like Nvidia, 3Dfx, and ATI in the limelight.
"With more 3D controllers shipping than 2D and multimedia controllers,
3D is driving the growth in the graphics chip market. 3D chips have
surpassed the start-up phase and have become mainstream in the PC
market," said Dr. Peddie.
The extreme high-end, the workstation segment, also showed good growth
(27%) over last year hitting 356,000 units and $50 million in revenue,
up 18.7%. This sector is expected to continue to show excellent growth
as users move from traditional Unix workstations to NT-based
workstations.
Other Key Findings
-- PC graphics shipments grew by 21.7% over last year, and revenues
increased by 39.4% from last year. ATI is in first place in both
units and revenue, for both chips and add-in boards.
-- Unit shipments of 3D controllers surged 116% from last year, and
revenues rocketed to 84.5% over last year.
-- 3D controllers represent 76.6% of the total PC market (NT and
Windows).
Looking ahead, JPA expects to see only those companies with large R&D
teams will be able to gain significant market share in 1999 and 2000.
JPA notes that the 3D shipments will exceed PC shipments (due to the
retrofit retail market for add-in boards) in 1999.
JPA's The Quarterly Report can be purchased for $500 a copy ($2,000 for
a one year subscription). For more information or to purchase, contact
Claire Goodhue at 415/759-6555 or at claire@JPA.com. Or visit JPA's Web
site at jpa.com.
About Jon Peddie Associates
Jon Peddie Associates (JPA) has been monitoring and reporting on the
digital media technology since 1984. JPA's analysis and market research
is relied on by computer industry senior management and professionals,
venture capital and financial institutions, and trade publications and
press.
JPA publishes other market studies, including the Digital Entertainment
Box Market Study, the Add In Graphics Board Market Studies 1999 and 3D
Tools and Applications Quarterly Reports, as well as The Peddie Report,
a weekly report recognized as the PC industry's technical marketing
advisory and analysis of digital media technology.
Jon Peddie Associates is located at 4 Saint Gabrielle Court, Tiburon,
CA 94920. Telephone: 415/435-1775. Fax: 415/435-1599. Web:
jpa.com. Email: info@jpa.com
Attention Editors: Charts and tables are available. For copies, or to
set up an interview, contact Debbie Nelson 415/455-9533.
-0- pw/sf* ao/sf
CONTACT: Jon Peddie Associates
Debbie Nelson, 415/455-9533 |
