Nvidia calls Intel's graphics chip tactics 'aggressive'

Advanced Micro Devices is not the only large Intel competitor to rail against Intel’s alleged strong-arm tactics.
Nvidia has also complained loudly for years about Intel business practices in the graphics chip market, where Intel commands about 50 percent of the market.
Nvidia is the world’s leading supplier of “discrete,” or standalone, graphics chips but takes a distant second place in overall market share to Intel, which supplies “integrated” graphics built into the chipsets that accompany all of its processors. Mercury Research estimates the total market for graphics chips, including integrated graphics, at almost $10 billion in 2009.
In the third quarter, Intel had 53 percent of the graphics chip market, up from the 49 percent share in the same period last year, according to Jon Peddie Research, which tracks the graphics chip market. Nvidia took about 24 percent, down from the 28 percent in the third quarter of last year.
These figures get even more lopsided for Intel when the market is segmented into integrated graphics only. “Put your seatbelt on. They’ve got 80 percent of the notebook integrated market,” said Jon Peddie, president of Jon Peddie Research. Though this is a much smaller and more segmented market than overall PC processor market, which was at the center of this week’s $1.25 billion settlement between Intel and AMD, it still shows the level of Intel’s dominance, according to Peddie.
Nvidia has taken to lampooning Intel. Here, CEO Paul Otellini is the object of satire on Nvidia’s ‘Intel’s Insides’ Web site.
(Credit: Nvidia)
Nvidia claims these latter market share figures reflect Intel’s “bundling” tactics–the same carrot-and-stick tactics that AMD has cited for years and that were spelled out in a complaint filed by New York’s attorney general earlier this month

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