NVIDIA can be kicking all sorts of tail at the mobile front with its ubiquitous Tegra 2 chipset, but back on its home turf of laptop and desktop graphics, things aren’t looking so hot. The most recent figures from Jon Peddie Research show that the GPU giant has lost 2.5 percentage points of its market share and now accounts for exactly a fifth of graphics chips sold on x86 devices. That’s a hefty drop from last year’s 28.4 percent slice, and appears to were driven primarily by sales of cheaper integrated GPUs, equivalent to those found inside Intel’s Clarkdale, Arrandale, and most recently, Sandy Bridge processors. AMD’s introduction of Fusion APUs that combine general and graphics processing into one has also boosted its fortunes , leading to 13.3 percent growth in sales relative to the former quarter and a fifteen.4 percent increase year-on-year. For sure, the genuine profits are to be made within the discrete graphics card market, where NVIDIA remains highly competitive , but watching figures like these shows quite clearly why NVIDIA is operating on an ARM CPU for the desktop — its long-term survival relies on it.
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