GPU Sales Have Dropped To Their Lower Level in a Decade

During the third quarter, shipments of both integrated and discrete graphics processing units fell to their lowest level in 10 years. This was because PC OEMs bought fewer CPUs, and gamers bought fewer graphics cards while they waited for next-generation products. On the other hand, because of changes to Ethereum, miners no longer bought graphics boards. In general, sales of graphics cards for desktops that don’t come with a computer have hit a multi-year low.

Most of the time, PC makers buy more PC hardware parts in the third quarter as they put together computers to sell during the busy back-to-school and holiday seasons. But because people aren’t buying as many PCs as they used to, companies are cleaning up their stock and buying fewer parts to get rid of what they already have.

Jon Peddie Research (JPR) says that this caused sales of integrated and discrete GPUs to drop to 75.5 million units in Q3 2022, down 10.5% from the previous quarter and 25.1% from the prior year (opens in new tab). JPR also says that sales of desktop GPUs dropped by 15.43%, and sales of notebook GPUs fell by 30%, which is the biggest drop since the recession in 2009.

GPU Sales Have Dropped
Credit: Jon Peddie Research

“The third quarter is usually the best time of the year for GPU and PC suppliers,” said Jon Peddie, president of JPR. “Even though the suppliers had guided down in Q2, the results were much worse than they had expected.”

Since Intel makes more CPUs than any other company, it also creates more PC graphics processors. As shipments of the company’s GPUs increased by 4.7% in Q3 2022, the company’s dominance grew. By the end of the quarter, it controlled 72% of the PC GPU market. In contrast, Nvidia’s share fell to 16% as it lost 19.7% of sales, and AMD’s share fell to 12% as its GPU shipments fell by 47.6% sequentially.

It’s interesting that sales of standalone graphics cards for desktops, including the best graphics cards for gaming, dropped by 33.5% from the previous quarter to 6.89 million, the lowest quarterly result in years.

gpu
Credit: Jon Peddie Research

The cryptocurrency mining shutdown, China’s zero-tolerance rules and rolling shutdowns, US sanctions, user situation from purchasing run-up during Covid, Osborne effect on AMD while gamers wait for the new AIBs, inflation and the higher prices of AIBs, overhang inventory run-down, and a bad moon out tonight were all cited by companies as contributing factors to the downturn. The consensus is that while Q4 shipments will be lower than usual, average selling prices (ASPs) will rise, supply won’t be an issue, and everyone will have a good Christmas.