The main threat for the market of add-in graphics cards’ sales volumes remain chipsets with integrated graphics cores, however, they are also the main reason for relatively high average selling prices of add-in graphics boards, according to Jon Peddie Research market tracker.

Back in the fourth quarter of 2006, about 57.6 million of desktop graphics adapters were shipped with only about 21.1 million being standalone add-in-boards (AIBs) according to Jon Peddie Research’s data. As a result, while the personal computer (PC) market can claim increase in sales, shipments of discrete components either stagnates or even tumbles, as integrated chipsets steal sales of entry-level AIBs. “Integrated graphics is eating the lunch of the lower end cards (especially sub $100 “Value”). It makes sense given how things have evolved: if you’re really interested in performance, you’re not buying a low-end card and if you aren’t interested in performance, integrated graphics will suffice. So the low-end board is becoming the ‘odd man out’,” said Alex Herrera, an analyst for Jon Peddie Research.



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