According to Jon Peddie Research, ATI’s market share has fallen 5% to an overall 23% for the third quarter when compared to the 28% the company held during the second quarter of this year. Since the AMD acquisition, ATI has become a direct competitor to one of its biggest partners, Intel. It would seem then that ATI’s success as a subsidiary of the #2 chip maker will depend on AMD performance in the CPU race.

The most dramatic market share decrease for ATI was in the mobile segment. ATI's share of the segment fell to 47 percent in the third quarter, from 63 percent in the second quarter. Nvidia picked up the slack, taking a 53 percent share in the market, up from 37 percent, according to Jon Peddie Research.
If you thought it might be the graphics chip market that hasn’t done as well, it has actually increased approximately 11% when compared to last year’s figures for the same period. The 5% percent market lost by ATI in the recent quarter has been picked up by Nvidia, VIA, and SiS. Now Nvidia holds the #3 spot just 1% under ATI. Unless AMD/ATI come up with a plan it’s very likely that Nvidia will take the second place spot, right after Intel.