Nvidia declares JPR report 'an irrelevant metric'

A recent report by Jon Peddie Research suggests that Nvidia's market share is slipping - but the company claims that JPR's headline-grabbing overall loss figure doesn't reflect the areas in which the company is growing.

Speaking to thinq_, Nvidia's UK spinner Ben Berraondo confirmed that, while JPR's figures are accurate, the company has drawn some misleading conclusions when trying to market the report to analysts. "The JPR data reports on overall graphics shipments," Berraondo explained, "which is no longer a relevant metric for Nvidia since we exited the chipset business."

Using figures from rival analyst Mercury Research, Berraondo was able to demonstrate a maintained lead in discrete GPUs - the area in which Nvidia is choosing to compete, lacking the x86 licence required to create a desktop processor with embedded graphics to challenge Intel's Sandy Bridge and AMD's Fusion APU lines.

"As the figures show," Berraondo told us, "we’re the leader in discrete graphics and there is also a healthy growth projection for the discrete GPU market." And it's true that Mercury Research's numbers point to a 59.4 per cent desktop discrete graphics share for nvidia, a 58 per cent laptop discrete graphics share, and a forecast that the discrete graphics market will grow to 250 million units by 2015 from its current 150 million unit shipments.

Mercury Research's figures reveal something else, however: as seen in Jon Peddie's figures, Nvidia has had a rough year. While its discrete laptop graphics market share is up eight points from this time last year, it's down four percentage points quarter on quarter. Worse, its 59.4 per cent share in the discrete desktop graphics market is a significant dip from its 65 per cent share this time last year.

Berraondo is confident of growth, however. "We’re currently seeing an upswing in the discrete notebook market," he told us. "And our 200-plus notebook design wins with Sandy Bridge are ramping up now. We believe as [Intel's] Sandy Bridge becomes the dominant platform our market share will continue to grow."