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Sales of Discrete Desktop Graphics Cards Dropped 16% in 2018 Compared to 2017
By Stuart Thomas on November 29th, 2018 at 11:42am - original article from game-debate

Ever-watchful market analyst Jon Peddie Research has been scraping the numbers for graphics card sales over the past twelve months, noting a marked decline in the number of dedicated desktop GPUs sold compared to last year.

Shipments of desktop GPUs dropped by a significant 16 percent in 2018 when compared to 2017, although sales of notebook graphics cards increased 7%, indicating a possible shift toward laptop gaming. This is a big dip considering the crypto mining demand was at its peak during March/April of this year.

The overall figures for the Q3 2018 quarter were actually up when compared to Q2 2018, as we’d expect with the arrival of a new family of GeForce graphics cards. However, year on year, the news wasn’t quite so positive with the bursting of the crypto mining bubble causing demand for GPUs to take a hefty tumble.

There was a slight shift in market share for the quarter, with AMD and Nvidia ceding 0.6% and 0.97% respectively to Intel, leaving Team Blue up 1.5% for the quarter.

“The effect of crypto-mining on desktop discrete GPU sales is over, leaving AMD and Nvidia with an oversupply in the channel and impacting shipment levels,” said Dr. Jon Peddie, President of JPR. “The U.S. tax increase on products from China has had a small effect which may worsen in Q4. The drop in the U.S. stock market has caused consumers and enterprise to hold off on purchases. All of that has contributed to the slow sell-off of inventory in the channel, which has reduced demand to the suppliers.”

Of note from the figures available to us is that the attach rate of graphics cards to PCs was 141%, up 3.54% from the previous quarter. In a nutshell, more graphics cards, both integrated and discrete, are being bought with PCs. The figure being above 100% suggests dedicated GPUs are being bought alongside CPUs with integrated GPUs. However, there is a move to more integrated graphics with just 31.61% of PCs bought with dedicated graphics cards, down 3.54% for the quarter.

One final point is that shipments of AIB graphics cards were down 19.21% for the quarter, suggesting a significant slowing in the purchasing of discrete GPUs. There’s likely a number of reasons for this, including the aforementioned crypto mining slowdown, as well as a lack of new mainstream video cards coming to market. Nvidia obviously hit the top-end with its GeForce RTX 20 series, but these tend to sell a fraction of the number of lower-end products.

Source: JPR