The demand for video cards increased significantly during the COVID-19 pandemic, as some people spent more time at home playing games, while others tried to mine Ethereum to make money. But now that the world has opened up again (for the most part) and Ethereum mining has “died”, the demand for discrete graphics cards has plummeted. According to Jon Peddie Research, shipments of discrete graphics cards hit a nearly 20-year low in the third quarter of 2022.
In the third quarter, the industry shipped about 6.9 million discrete graphics cards for desktop PCs, including high-end gaming solutions, and the same number of discrete graphics processors for laptops. In total, AMD, Intel and NVIDIA shipped about 14 million discrete graphics processors for desktops and laptops, which is 42% less than last year. At the same time, the supply of integrated graphics processors in the third quarter of 2022 amounted to about 61.5 million units.
The 6.9 million PC graphics cards are the lowest number of graphics cards shipped since at least the third quarter of 2005. Their sales were quite high in the early 2000s because the integrated GPUs were not good enough. It’s safe to say that in the third quarter of 2022, the supply of desktop graphics cards reached an approximately 20-year low.
Despite the drop in demand for discrete video cards for desktop PCs (unit sales fell by 31.9% compared to last year), NVIDIA not only managed to maintain its leadership, but even strengthened its position with a market share of 86% – the highest figure in history. In contrast, AMD’s share fell to around 10%, a 20-year low. As for Intel, it managed to capture 4% of the desktop discrete graphics market in just one quarter – not a bad start. Most of the cards sold by Intel in the third quarter of 2023 were entry-level models, but they were in demand among Intel customers due to brand recognition and media coverage of their release.
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There is a nuance in the sales of desktop video cards compared to the beginning of the 21st century. The supply of discrete GPUs for laptops in the early 2000s was not as high as it is today – not as many laptops were sold back then. Therefore, it is quite possible that the joint sale of discrete solutions for desktop computers and laptops more or less corresponds to what it was 15-17 years ago. Also, as GPUs have become more expensive, AMD and NVIDIA have made significantly more in recent years.
In November, we already wrote that sales of video cards fell sharply in the third quarter of 2022 – enthusiasts were waiting for discrete graphics cards of the NVIDIA RTX 4000 series and AMD Radeon RX 7000, while PC manufacturers used up their stocks of processors with integrated graphics to the maximum. While the overall market was down about 25.1% year over year, the discrete GPU market was down 42%.
Jon Peddie Research points out that the drop in GPU sales in the third quarter was the most significant since the recession of 2009. According to Tom’s Hardware, the situation in the GPU market is even worse.
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