Graphics market bleak as shipments decline

Shipments of graphic chips in the fourth quarter of 2008 fell by 34 percent over that of the third quarter, according to Jon Peddie Research. In a statement, president Jon Peddie said, "The fourth quarter is usually a positive quarter for the computer industry. There has obviously been some inventory problems in the quarter." Peddie blamed the decline of the worldwide financial market and sapped consumer spending as the chief culprits.

Of course, I would add that the steady decline of PC-based computer games doesn't help the situation. The popularity of desktop is also on the decline as laptop shipments have surpassed that of desktops. While laptops do require graphics chips as well, the lower margin adds to the bleak outlook in the graphics market.

For more on this story:
- check out this article from CNET News

Related Articles:
Graphic chips news from FierceCIO