Jon Peddie Research, a research and consulting firm for graphics and multimedia announced that approximately 68.4 million PC graphics devices shipped from eight suppliers in the third quarter of this year. Compared to the firm's previously published reports, this represents an 11.6 percent increase over the previous quarter and an 8.2 percent increase over the same period in 2004.

The growth was mainly driven by mobile graphics. The segment saw quarterly growth of 17.1 percent with integrated mobile shipments increasing 25.8 percent sequentially. Discrete mobile shipments were essentially flat during the period. The firm estimates that about 17.4 million mobile graphics devices shipped during the quarter, 12.6 million of which were integrated graphics chipsets (IGCs) for notebooks. Mobile IGCs shipped in record numbers during the period and also claimed record share of 72.4% in the mobile graphics market.

The firm estimates that 50.9 million desktop graphics devices shipped in third quarter, 30.7 million or 60.3percent of which were integrated parts. Overall, Intel claimed 36.9 percent of the desktop graphics market, ATI held 23.6 percent, and Nvidia held 22.0 percent market share. During the quarter, ATI's desktop graphics shipments grew 7.6 percent sequentially while Nvidia's desktop shipments grew 28.3 percent. Nvidia's gains on the desktop side came from its standalone GPU products, shipments of which increased 20.0 percent 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 the research firm. In standalone graphics, Nvidia surpasses ATI in shipments with a market share of 50.4 percent. ATI's share dropped to 47.9 percent.

The findings of Jon Peddie Research are in line with the results of Mercury Research, which released its report last week.