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AMD's new graphics business losing share

Tom Krazit Former Staff writer, CNET News
Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.
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Tom Krazit

ATI Technologies, now part of Advanced Micro Devices, lost market share in all categories during the third quarter to rivals like Nvidia, according to a report from Jon Peddie Research.

ATI is still the second-largest supplier of PC graphics technology, but lost ground to its rivals during its first quarter as part of AMD, according to the report. Intel maintained its spot as the largest supplier of PC graphics, thanks to the integrated graphics it puts in its chipsets, with 40 percent of the market in both the second and third quarters of this year. ATI's share dropped from 28 percent in the second quarter to 23 percent in the third quarter, while Nvidia's share rose from 20 percent to 22 percent.

One possible reason for the drop? ATI used to be a huge partner of Intel's for graphics technology, but Intel isn't as interested in working closely with its bitter rival. Also, AMD is perhaps not as interested in ATI's graphics cards as it is the company's chipset business, which will allow AMD to give PC makers what they want: a complete package of processor and chipset to speed the introduction of new PCs.