Advanced Micro Devices' new graphics chips are taking market share from Nvidia, a report issued Wednesday confirmed.
"AMD has by all accounts exceeded expectations with its Radeon HD 4000 series," according to report issued by market researcher Jon Peddie Research (JPR).
Aggressive pricing by AMD's ATI graphics unit made the difference, bringing down prices on add-in graphics boards. "Priced aggressively yet delivering solid performance, AMD's new line not only took back some market share--jumping up to 40 percent from 35 percent the quarter prior--it forced Nvidia (and partners) to cut prices on its recently released GTX 200 series product," JPR said.
Prices for graphics boards based on Nvidia GTX 260 and 280 graphics chips were slashed back in July. This happened only a few weeks after Nvidia launched the chips.
"Discounts cut into ASPs (average selling prices), taking a toll on revenue for both Nvidia and the market overall, the latter down 27 percent (year-over-year) to $3.8 billion," JPR said.
The sequential growth for add-in boards tracked the growth in the aggregate market for graphics chips (which also includes motherboard-integrated products). The latter saw an increase (sequentially) in unit shipments of 17.8 percent in the third quarter. Unit shipments for add-in boards increased 11 percent to 21.9 million sequentially but fell 15 percent year-to-year.