Huge image: Shipments in 2022 confirmed drops throughout your complete tech business, however the drop in desktop GPU gross sales might be historic. In a yr of a number of main product launches, the dramatic drop in shipments is probably going resulting from a number of components. Regardless of the decline within the total market, Nvidia has managed to extend its market share considerably.
In Jon Peddie’s 2022 GPU market abstract, Q3 shows lowest desktop graphics card gross sales complete since a minimum of 2005. Like many different merchandise, GPUs acquired gross sales development from distant prospects in 2020 and 2021, however the hangover seems to be notably robust for this market.
Intel, AMD and Nvidia collectively shipped Within the third quarter of 2022, discrete desktop graphics playing cards had been just below 6.9 million, down 47 % year-over-year. For comparability, the 2008 financial crash resulted in an identical 46 % drop from This autumn of 2007 (an all-time excessive with the discharge of Nvidia’s legendary 8800 GT) to This autumn of 2008.
The decline in 2022 hit the purple staff more durable than the inexperienced staff. Nvidia noticed a 40 % year-over-year decline in discrete desktop GPU shipments, whereas AMD dropped 74 %.
Publish-crash crash affecting computer systems, tablets, smartphones and different gadgets is the first issue, however one other issue particular to GPUs is the tip of crypto mining. Jon Peddie’s knowledge contains customers buying GPUs for Ethereum mining, which has elevated gross sales and costs lately. The crypto winter of 2022, coupled with the Ethereum merger that ended GPU-based mining, has drastically disrupted the market.
Nvidia and AMD have launched new flagship GPUs this yr, launching the RTX 4000 and Radeon RX 7000 sequence respectively, however solely within the high-priced fanatic phase. 2023 may even see barely higher gross sales relying on how firms are pricing the upcoming main entries in these graphics card sequence.
Intel’s troubled entry into the discrete graphics house with the Arc Alchemist sequence in 2022 drove the corporate’s market share to 4 %. In the meantime, Nvidia’s share within the third quarter rose 10.2 % year-over-year to 86 %, and AMD’s market share fell to 10 %, or 52 %.
A lot of the enhance in GPU shipments in 2020 and 2021 went to laptop computer graphics, which additionally noticed the sharpest drop. Gross sales of devoted desktop graphics have dropped progressively over the previous 20 years as laptops and built-in GPUs have change into adequate for an rising variety of customers.
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