Jon Peddie Research estimates 71.4 million PC graphics devices were shipped from major suppliers the second quarter, 4.6 percent down from the prior quarter though 16.6 percent up year-over-year.

Intel remains the largest supplier of PC graphics devices worldwide. ATI, the second largest supplier, saw shipments decline sequentially by 8.4 percent, while third-ranked Nvidia saw its shipments increase 2.0 percent sequentially with higher market share.

The desktop graphics segment saw shipments fall 7.0 percent from Q1 06 to Q2 06 but rise 11.6 percent year-over-year. Integrated desktop shipments dropped 7.1 percent sequentially but increased 14.7 percent year-over-year. Discrete desktop shipments fell 6.8 percent on a quarterly basis and grew 7.0 percent year-over-year.

The mobile graphics segment did better, with quarterly shipments up 2.2 percent sequentially and 31.9 percent year-over year. Intel led the mobile graphics market with a 54.9 percent share, followed by ATI with 31 percent and Nvidia with 10.9 percent. In the discrete mobile segment, ATI saw shipments decline quarter-to-quarter while Nvidia saw shipments increase sequentially.

JPR estimates that a record 19.6 million mobile graphics devices shipped in Q2 06, 14.7 million of which were integrated chip sets for notebooks.