Desktop and notebooks featuring first generation graphics-enabled microprocessors (GEMs) – chips that combine CPU and GPU cores on the same die - from chip-making giants like Intel and AMD are still fairly new to the market, but market research firm iSuppli expects GEMs like Intel Sandy Bridge and AMD Fusion to establish firm control over both the desktop and notebook PC segments by the end of 2011.
iSuppli foresees a dramatic rise in GEM penetration this year, with GEM penetration in the notebook and desktop segments expected to rise 11 percentage points and 9 percentage points, respectively. This means that GEMs will be in about 50 percent of the 230 million notebooks expected to be shipped this year. Meanwhile, GEM-equipped desktops are expected to make up 45 percent of all desktop shipments. The forecast becomes even rosier beyond 2011, with 83 percent of all notebook PCs and 76 percent of desktop PCs expected to feature GEMs by 2014.
While HIS does expect GEMs to cannibalize discrete graphics, it feels that such cannibalization “will not be significant in the short to medium term.”