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Whereas GPU demand stays excessive, graphics card gross sales drop by virtually 20%

Though many desktop customers everywhere in the globe are nonetheless trying to find probably the greatest graphics playing cards, market evaluation exhibits a big drop in GPU gross sales.

Based on Jon Peddie Research, a agency that focuses on tech business evaluation, graphics card gross sales dropped by 18.2% in comparison with the earlier quarter. Then again, evaluating gross sales to the earlier yr nonetheless exhibits large development that speaks volumes about present demand.

Nvidia

The statistics apply to PC-based graphics playing cards. Over 101 million GPUs have been shipped as of the third quarter of 2021. These are large numbers, particularly when taking the continued graphics card scarcity into consideration. These gross sales mark a 12% year-over-year development, persevering with the upward development affecting many of the PC market.

Whereas yearly gross sales have gone up, quarterly outcomes took an enormous dive. In comparison with the second quarter of 2021, GPU shipments dropped by 18.2% within the third quarter of this yr. This quarter was the strongest when it comes to {hardware} gross sales, however the entire earlier statistics have been thrown out the window as a result of numerous provide chain points, shortages, and naturally, the continued pandemic. Even accounting for the present scenario on the planet, a drop of 18.2% is very large and much above the 10-year common of -5.2%.

The GPU market continues to be a two-horse race between Nvidia and AMD. Intel is gearing as much as be part of the battle with its upcoming Intel Arc Alchemist line, however till then, the producer has virtually no market share with regards to discrete graphics playing cards. As such, all of those numbers apply virtually oolely to Nvidia and AMD.

Jon Peddie Analysis studies that during the last quarter, AMD and Nvidia each maintained the identical market share that they held within the second quarter: Nvidia holds 83% of GPU gross sales, and the remaining belongs to AMD. Nevertheless, year-over-year, Nvidia elevated its lead by 3%, leaving AMD additional behind.

Promotional image of an AMD Radeon RX 6000-series graphics card.

The above applies to discrete GPUs, however Intel does play an element within the general GPU connect price. Total GPU connect price consists of each built-in and discrete items, desktop GPUs, laptop computer fashions, and people put in in workstations. Jon Peddie Analysis reported that the connect price for the final quarter was 125%, which is a 7.6% improve in comparison with the second quarter of 2021. Regardless of the general improve in gross sales, solely Nvidia managed to develop its market share on this part by 8%. AMD noticed a decline of 11.4%, however that’s nonetheless not too unhealthy when in comparison with Intel’s -25.6% drop.

The massive dip in quarter-to-quarter gross sales is just not as shocking because it might sound. The chip scarcity is just not getting any higher: Getting a graphics card at MSRP is a small miracle. As costs attain outrageous ranges, many choose to not purchase a GPU or select to purchase a used unit. Throw into that numerous provide chain points and restricted availability of graphics playing cards, and all of it provides as much as a foul quarter for gross sales.

Latest rumors reveal that AMD could also be engaged on new price range graphics playing cards. Nvidia is readying RTX 4000-Collection GPUs for subsequent yr, and Intel has its Arc Alchemist line within the works. Maybe the brand new releases will assist GPU gross sales rebound, however the GPU scarcity itself is prone to persist all through 2022.

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