Jon Peddie Research (JPR), a research and consulting firm for graphics and multimedia, reports that ATI’s lead over Nvidia in the desktop segment narrowed as compared to the prior quarter. In Q305, ATI’s desktop graphics shipments grew 7.6% sequentially while Nvidia’s desktop shipments grew 28.3%.

JPR estimates that approximately 50.9 million desktop graphics devices shipped in Q305, 30.7 million or 60.3% of which were integrated parts. Overall, Intel claimed 36.9% of the desktop graphics market, ATI held 23.6%, and Nvidia held a 22.0% market share.

Nvidia’s gains on the desktop side came from its standalone GPU products, shipments of which increased 20.0% during the quarter, as well as from its line of integrated graphics devices, shipments of which increased more than three-fold during the period, according to JPR. On the discrete side, Nvidia grew its segment share from 46.3% in Q205 to 50.4% in Q305, reports the research firm, adding that ATI’s discrete desktop share fell from 51.8% in Q205 to 47.9% in Q305.

“ATI and Nvidia continued to dominate the desktop GPU market in the third quarter, but with a shift in relative positions,” said Lisa Epstein, a senior analyst at Jon Peddie Research. “Nvidia had trailed ATI in the discrete desktop segment for four consecutive quarters. However, with the launch of its flagship GeForce 7 series and the continued success of the GeForce 6 series, Nvidia was able to regain lost segment share in Q305. The delays ATI experienced in bringing its latest generation GPU technology to market also assisted Nvidia in growing share during the period,” Epstein concluded.

Intel saw a 6.4% sequential increase in graphics shipments in Q305 and was the largest supplier of PC graphics devices worldwide, but the company’s share of the total graphics market declined slightly during the period. ATI remained the second largest supplier in Q305 with an 8.8% sequential increase in shipments and essentially flat market share. Nvidia was the third largest supplier in Q305, with a 24.9% sequential increase in shipments and increased market share.

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