JPR reports 38% lower GPU shipments year on year
As the economy slumps, so do sales or is it just bad pricing of new stuff?
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Update: JPR has updated the market share after Intel misreported its discrete GPU shipment
John Peddie Research gives us yet another report on the state of the PC market. And in particular how the graphics cards are doing, with the main fact of a drop in shipments of 38% year on year.
It still shows the growth of the GPU market, with a number of 64.2 million units in Q4 of 2022. So along with that, it forecasts that in the period of 2022-26, the market will have an annual growth rate of 0.19%. Reaching 3.013 billion units by the end of the period.
However, year after year, the shipments have gone down. This is the total graphics processors which will fall by 38%. Whilst looking separately, desktop cards decreased by 24%, with notebooks down 43%. Overall, the shipments fell 15.3% over the previous quarter.
Following the shipments decrease, there is a breakdown per company as well. And we know, AMD’s fells by 12.7%, Intel’s decreased by 16.5%, and Nvidia’s by 11.7%.
Typically Q4 is the same or a bit higher than Q3. But this one decreased by 15.3%, below the 10-year average of 6.8%.
In terms of market share, in Q4 2022, Nvidia still has a massive lead in shipments of 82%. With Intel is still behind AMD with a 6% share over the 9% from team Red.
Compared to Q4 of 2021, there is a bit of change as well. Where AMD had a share of 18%, Intel 5%, and Nvidia 78%, but for 26 million units compared to 13.
GPUs are a good indicator of the market as they are what goes in before a PC shipment. And semiconductor vendors are guiding for less next quarter by 6.44%. Compared to the previous quarter they of guiding -0.21% which was too high.
Why are fewer GPUs being sold?
Realistically, with the price of graphics cards, it has been harder to justify buying them. Especially as times become tougher for everyone. As things get expensive, buying a GPU is an unnecessary purchase.
So it might improve with time, as possibly newer, cheaper cards are released, unlike the RTX 4090 or surprising RTX 4080, then others will choose to get some. But it might take some time when things improve and companies realize not everyone wants to spend $1000 on one component.
