According to Jon Peddie Research, the overall GPU market dropped 0.5% from Q1 2008. While a drop may sound like a bad thing JPR says that Q2 is generally down for the computer industry with summer vacations and back to school.

The 0.5% drop from Q1 2008 to Q2 2008 is the smallest drop since 2001. JPR says that shipments for the quarter were 94.4 million units -- an increase of 16% over the same quarter in 2007. Intel held the top spot for overall graphics market with 47.3% market share. NVIDIA has 31.4% of the market and AMD held 18.1% of the market.

One interesting fact in the JPR report is that VIA/S3 year-over-year growth is a massive -84% (yes that is a negative). Intel was tops in the desktop field with 41.5% of the market with NVIDIA have 36%. AMDs desktop market share dropped to 18.3%. NVIDIA did see a drop in market share for the notebook market slipping to 23.6% while AMD grew to 17.9%. Intel held first with 57.1% of the notebook market.

Via JPR