http://www.digitimes.com/NewsShow/Article.asp?datePublish=2002/07/30&pages=04&seq=27
Despite the weak buying sentiment in the second quarter, ATI Technologies managed to report shipment growth with its aggressive efforts in cultivating the desktop-use graphics chip market, company chairman and CEO Ho Kwok-yuen said.
Ho indicated that ATI?s graphics chip shipments in its fiscal third quarter (March-May) rose by 10% from the previous quarter. As the PC market is nearly saturated, ATI believes the increase in shipments represents growth in market share.
According to the US-based research firm Mercury Research, ATI has about a 23% share of the graphics chip market while rival Nvidia controls about 42%.
In spite of the company?s recent growth, Ho noted that ATI may experience marginal shipment decline in the short term, due to market concerns about US corporate accounting problems as well as weak consumer confidence. However, he predicts that the overall business will recover in the fourth quarter. Meanwhile, anticipating that high-season demand from downstream clients may emerge at any time, ATI has decided to slightly raise its inventory levels in the second half in preparation.
Ho also projects industry-wide product ASPs (average selling prices) will rise slightly in the second half, as several companies have scheduled to introduce new products. In the first half, the average ASP of graphics chips suffered greatly from stiff price competition.
In addition to the desktop graphics chip market, ATI has been extending its operations into the consumer graphics chip and integrated core logic chipset sectors in the past few years. The company predicts that by the end of its 2003 fiscal year, it will generate 50% of its revenues from the desktop graphics chip business, only 30% from the notebook graphics chip segment and over 10% from new products like integrated chipsets.
Despite the weak buying sentiment in the second quarter, ATI Technologies managed to report shipment growth with its aggressive efforts in cultivating the desktop-use graphics chip market, company chairman and CEO Ho Kwok-yuen said.
Ho indicated that ATI?s graphics chip shipments in its fiscal third quarter (March-May) rose by 10% from the previous quarter. As the PC market is nearly saturated, ATI believes the increase in shipments represents growth in market share.
According to the US-based research firm Mercury Research, ATI has about a 23% share of the graphics chip market while rival Nvidia controls about 42%.
In spite of the company?s recent growth, Ho noted that ATI may experience marginal shipment decline in the short term, due to market concerns about US corporate accounting problems as well as weak consumer confidence. However, he predicts that the overall business will recover in the fourth quarter. Meanwhile, anticipating that high-season demand from downstream clients may emerge at any time, ATI has decided to slightly raise its inventory levels in the second half in preparation.
Ho also projects industry-wide product ASPs (average selling prices) will rise slightly in the second half, as several companies have scheduled to introduce new products. In the first half, the average ASP of graphics chips suffered greatly from stiff price competition.
In addition to the desktop graphics chip market, ATI has been extending its operations into the consumer graphics chip and integrated core logic chipset sectors in the past few years. The company predicts that by the end of its 2003 fiscal year, it will generate 50% of its revenues from the desktop graphics chip business, only 30% from the notebook graphics chip segment and over 10% from new products like integrated chipsets.
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