GPU Sales Lowest In a Decade
The GPU market has nosedived, hitting a 10 year low after mining changes, customers waiting for new gen GPUs and the high prices of high end cards.
Graphics card shipments have dropped massively in the third quarter thanks to a mix of badly timed factors. Etherium recently switched to non-GPU mining, which affected the market heavily. Mining accounted for up to 35% of GPU sales this year, and now that one of the most popular crypto currencies no longer requires a GPU to mine, that demand has dropped drastically. Another factor is that both Nvidia and AMD both recently announced their latest GPUs which users have been expecting for a few months, as such many have been waiting before they buy new cards.
It isn’t uncommon for PC makers to increase their procurement of hardware components in the third quarter to make PCs to then sell back for a profit in back-to-school seasons when sales are higher. However, due to the demand for PCs being lower than usual recently, manufacturers have lowered their spending on components to sell off the inventory they already have.
Subsequently, sales of both integrated and descrete GPUs has dropped to 75.5 million units in Q3 2022, down 10.5% sequentially and 25.1% year-over-year. As well as that, desktop GPU shipments fell by over 15%.
The president of JPR, Jon Peddit, said that “The third quarter is usually the high point of the year for the GPU and PC suppliers, and even though the suppliers had guided down in Q2, the results came much below their expectations.”
“All the companies gave various and sometimes similar reasons for the downturn: the shutdown of crypto mining, headwinds from China’s zero-tolerance rules and rolling shutdowns, sanctions by the US, user situation from the purchasing run-up during Covid, the 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,” said Peddie. “Generally, the feeling is Q4 shipments will be down, but ASPs will be up, supply will be fine, and everyone will have a happy holiday.”
