ATI Market Share Slipping After AMD Merger

By Geoff Duncan Published December 6, 2006

New market share figures compiled by Jon Peddie Research show graphics developer ATI has been losing market share in every graphics products category falling the company’s merger with chipmaker AMD. The reason? AMD’s acquisition of ATI has put the grahpics developer in direct competition with Intel, which used to be an ATI development partner. Thus, ATI is selling fewer graphics controllers designed to work with Intel’s microprocessors.

According to Jon Peddie Research, ATI accounted for a 28 percent market share in the second quarter of 2006, but that declined to 23 percent in the third quarter of 2006 following the AMD acquisition, representing a decline in sales of almost 18 percent quarter-to-quarter. Although the drop wasn’t steep enough to knock ATI out of the number two ranking for overall graphics chips sales, ATI’s rivals—Via Technologies, Silicon Integrated Systems (SiS) and Nvidia—all saw their proportions of the market increase during the third quarter. Intel still dominates the graphics systems market, retaining a 40 percent share during both the second and third quarters of 2006.

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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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