75 percent of graphics market for performance cards

According to the report by Jon Peddie Research, 21.8 million graphic cards were produced globally in the third quarter of year 2006, there was 7.7% rise when comparing to the same quarter of year 2005. Though the production volume increased, total revenue of the market shrinks. In the third quarter 2006, the total revenue of graphic card market was US $4.97 billion, which fell by 12.2% when comparing to the same quartet last year.

The Taiwan enterprisers of graphic card pointed out that, though there was an increase in the production volume, the intra-industry competition was extremely fierce, margin of profit making was gradually lowered due to the market share maximization by big firms which reached their economic scale of production. Thus the shrink of the total revenue should be expected. Besides, advanced technology contributed to the production cost of graphic card. Fancy packaging and special designed heat sink were requested as selling points in the market. It was expected that space left for the not-that-advanced graphic card producers was limited in future.