Demand for graphics cards drops dramatically in Q1 – report

[~Mike~]

The first quarter of 2015 is not over, but manufacturers of various computer components can already make conclusions about demand for their products during the period. A media report citing makers of graphics cards suggests that sales of discrete desktop graphics adapters may hit record low levels in Q1 2015.

Shipments of standalone graphics cards in the first quarter of 2015 are projected to decrease by whopping 20 – 25 per cent quarter-over-quarter, reports DigiTimes citing sources in the industry. The decline from Q4 to Q1 is unprecedented. According to Jon Peddie Research, shipments of graphics add-in-boards (AIBs) decreased 6.7 per cent sequentially in Q1 2014, whereas the 10-year average drop is 3.2 per cent.

JPR recently found that around 12.4 million discrete desktop graphics adapters for desktop computers were shipped by various manufacturers in Q4 2014. If the DigiTimes’ report is correct, then sales of graphics cards will drop to 9.3 – 9.92 million units this quarter, which will be the first time in the recent history, when quarterly shipments of graphics adapters will drop to below 10 million units per quarter. Traditionally, sales of graphics cards are also not strong in the second quarter, hence, further declines are possible.

The report claims that the recent scandal with specifications of Nvidia Corp.’s GeForce GTX 970 graphics card slowed down demand for such adapters as customers preferred to wait until Nvidia drops the price of the graphics solution. It is noteworthy that the recent launch of Nvidia’s GeForce GTX 960 graphics card did not stimulate sales significantly.

Nvidia currently dominates the market of discrete desktop graphics cards with 76 per cent share, according to JPR. Advanced Micro Devices commands 24 per cent of the market.

AMD and Nvidia did not comment on the news-story.

http://www.kitguru.net/components/g...aphics-cards-drops-dramatically-in-q1-report/

http://digitimes.com/news/a20150319PD219.html

 

[thebennyboy]

With both Nvidia and AMD making hefty ****-ups, what did you expect?

We really need a third player.

 

[Rroff]

This year has seen a dramatic drop (always is a pretty big drop at this time of year for many types of business anyway) for many industries going through Q1 its not something specific to the GPU market - a couple of years back or so it came squeakily close to finishing AMD but they are in a bit better shape to weather it this time around.

No doubt in another couple of months it'll start to pickup again - pretty much always does - aslong as both companies have good offerings going into the 2nd half of the year it'll be little more than a distant memory.

EDIT: A little concerned for AMD though - if they don't have some solid products to go in the 2nd half of the year especially GPU ones they could be looking at a very bleak future - if their next big GPU is a flop it will hit very hard.

 

[Martini1991]

There's been nothing to buy

Even people on 7970's/680's haven't really got anything to *really* buy until next die shrink.

 

[Kaapstad]

The question people are asking themselves is

Should I hang on to this 28nm card or get a new 28nm card with only slightly better performance.

 

[Gregster]

There's been nothing to buy

Even people on 7970's/680's haven't really got anything to *really* buy until next die shrink.

Pretty much how I see it. 980/970 for the high end market and the mid market (I guess the biggest seller?) has had nothing worth thinking about.

 

[mmj_uk]

AMD's decline/period of inactivity over the past year will have had a significant impact.

From a bit of Googling...

Discrete Graphics
AMD market share
Q1 2013 - 35.7%
Q2 2013 - 38%
Q3 2013 - 35.5%
Q4 2013 - 35%
Q1 2014 -35%
Q2 2014 - 37.9%
Q3 2014 - 28.5%
Q4 2014 - 24%
Q1 2015 - 24%

 

[Rroff]

The question people are asking themselves is

Should I hang on to this 28nm card or get a new 28nm card with only slightly better performance.

Yeah :S I'd have snapped at the Titan X without a second thought if it had been on 16nm FF or something - paying that much for yet another 28nm card runs into a big mental block.

 

[Ayahuasca]

AMD's decline/period of inactivity over the past year will have had a significant impact.

From a bit of Googling...

Discrete Graphics
AMD market share
Q1 2013 - 35.7%
Q2 2013 - 38%
Q3 2013 - 35.5%
Q4 2013 - 35%
Q1 2014 -35%
Q2 2014 - 37.9%
Q3 2014 - 28.5%
Q4 2014 - 24%
Q1 2015 - 24%

What happened between Q2 2014 and Q3 2014 to make them lose nearly 10%?

 

[Squink]

There's been nothing to buy

Even people on 7970's/680's haven't really got anything to *really* buy until next die shrink.

As above. The much lauded 970 and 980 don't push any boundaries and the 980 is only incrementally better than the 780ti. Arguably no better. For every enthusiast getting excited about power savings there would appear to be another five enthusiasts who aren't buying the spiel and certainly aren't buying the cards.

 

[Raumarik]

What happened between Q2 2014 and Q3 2014 to make them lose nearly 10%?

Bitcoin/Altcoin mining dropping possibly?

 

[elmuzzy66.]

Bitcoin/Altcoin mining dropping possibly?

2nd hand market taking away from new sales?

 

[Divine Pain]

Wasnt the 980/970 released around that point. thats my guess.

 

[Terminal_Boy]

A lot of people are happy with their 290s/290Xs and 770s/780s?

 

[Jarrastafari]

a wouldn't have thought it was because of any scandal as they put it but moreso that the 970 sold so many that demand is bound to drop, no? Coupled with the fact that less PC's are being sold... Lots of weight resting on this articles 'may' decrease.

 

[varkanoid]

a wouldn't have thought it was because of any scandal as they put it but moreso that the 970 sold so many that demand is bound to drop, no? Coupled with the fact that less PC's are being sold... Lots of weight resting on this articles 'may' decrease.

I agree loads of people bought a 970 last year so its a no brainer why sales have dropped coupled with no new cards out yet this year that appeal to mass market.

Actually I thought I read somewhere that PC sales were on the increase.

 

[Boomstick777]

There's been nothing to buy

Even people on 7970's/680's haven't really got anything to *really* buy until next die shrink.

+1

 

[bru]

Is it any surprise that not a lot have been selling, I mean in he midrange we have had the yawn 285 and the yawn 960, top end the 980 and 970 which despite Gibbo telling us were still selling like hotcakes, I'm sure the memory fiasco did have an impact on overall sales. In the under £150 sector there has been nothing new for ages. about a year in fact.

 

[Besty]

Lots of reasons for this, I think the main driving force is lack of a top notch graphics driven AAA title to push the PC boundaries out. Battlefield 4 was not good enough to trigger this.

PS4 and XBox One would have had an impact on GPU sales.

That aside this is why AMD and Nvidia have been innovating with things such as Mantle and G-Sync, TSMC have problems and the GPU market is stuck with 5 year old GPU process tech and old VRAM tech, people need reasons to upgrade which won't melt their computer.

Once the new processes arrives, the GPU market will explode once again.

 

[Boomstick777]

Is it any surprise that not a lot have been selling, I mean in he midrange we have had the yawn 285 and the yawn 960, top end the 980 and 970 which despite Gibbo telling us were still selling like hotcakes, I'm sure the memory fiasco did have an impact on overall sales. In the under £150 sector there has been nothing new for ages. about a year in fact.

+1

We've had new products from Nvidia pushing performance but only at the higher end. Out of the reach of a lot of people.

We need a new line 'top to bottom' to shake up current prices. A lot of stagnation due to 28nm.