[Hardware] Fewer and fewer PC graphics are being shipped, is the market collapsing?

[FNX Magokiler]

A new report from Jon Peddie Research shows how the graphics card market is fluctuating following the price data we saw earlier in the week. Together they form a picture that is currently negative and at the same time optimistic for the future. But is this report realistic or rather optimistic? Will PC graphics card shipments soar in 2022? Let's see it.

These are not good times for Intel, AMD and NVIDIA, as the big three are facing a situation that they have partly caused themselves. And it is that shipments have stagnated or dropped (depending on who we look at) and the new graphics cards may not help alleviate the deficit.

PC Graphics Card Shipments Down: -6.2% QoQ
The data in the report is quarterly, which marks a trend rather than offering a line of action or forecast as such. These data are curious, since for example, Intel is registered thanks to its iGPUs, so with this in mind we are going to comment on the move.

AMD and NVIDIA have really grown in shipments, but not in units as such, but in market share for those shipments. AMD had a 17% share in Q1 2021 and has gone to 19% in Q1 2022. NVIDIA goes from 15% to 21% and Intel collapses from 68% to 60%, percentages that have been recovered by their rivals logically.

This is due to the collapse of processor sales, where both Intel and AMD are having a hard time. The problem for the three giants is that, in general, the shipment of units for the sale of GPUs fell by 6.2% in one quarter and they are already two down, so given the current global and market context, It seems that the user and player is going to be up for the task of buying a graphics card today and less if the prices are inflated by manufacturers or distributors.

A bear market that is instead bullish

 

The table below shows the total market share between desktops and laptops for the three dGPU manufacturers and as we see, the trend more or less continues since Intel has entered the game now. But the data offered by the report shows other realities:

The overall rate for GPUs (including integrated and discrete, desktop PCs, notebooks, and workstations) for the quarter was 129%, up 5.0% from last quarter.
The overall PC CPU market decreased -10.8% quarter over quarter and fell -26.2% year over year.
Boards and PCBs (AIBs that use discrete GPUs) increased 1.4% from last quarter.
This quarter saw a 16.5% drop in tablet shipments from the previous quarter.

Said data is not really good, but Jon Peddie is somewhat optimistic about it:

“Consumers are cautious despite new product introductions from AMD, Intel and NVIDIA (AIN) in the second half. So our forecast for the year is a modest 2% to 3% for GPUs. US real GDP growth will increase 2.3% (year over year), according to the Conference Board's economic forecast for the US economy, and we expect 2.1% growth (year over year). ) in 2023.”

As we say, they are optimistic. The reality is that if inflation continues to rise and 2023 is going to be as bad a year as it is supposed to be, the data offered on real US GDP may end up being insufficient and if the FED does not get involved and pull out the printer of money the situation is not going to improve, at least in the long term, so given that the prices of the RTX 40 and RX 7000 are not going to be lower than those shown in their predecessor generations, are users really going to launch to buy graphics cards with the current world situation?