Sales of graphics processing units — discrete and integrated — dropped 14.9% quarter-over-quarter in Q2 2022 as demand for PCs among consumers softened and distributors of parts and PC makers reduced their purchases. As a result, shipments of standalone GPUs dropped more significantly than shipments of integrated GPUs, which is why Nvidia suffered a 25.7% sequential decline in unit sales.
Unit shipments of PC CPUs decreased by 7% quarter-over-quarter and 33.7% year-over-year, according to Jon Peddie Research. As a result, shipments of GPUs declined by 14.9% QoQ. Among three GPU vendors, AMD's GPU sales declined the least by 7.6% sequentially, Intel's shipments decreased by 9.8%, whereas Nvidia's unit sales dropped by a whopping 25.7%, data by JPR shows.
The sales of discrete graphics cards for desktops (including the best graphics cards for gaming) declined by 22.6% sequentially in the second quarter to around 10.37 million units, the lowest number of standalone desktop GPUs sold per quarter since Q2 2020. It perhaps was expected as everyone who wanted to get an AMD Radeon RX 6000-series or an Nvidia GeForce RTX 30-series graphics board had already done this.
As for market shares, Intel remained the leading GPU supplier in Q2 2022 with 62% of the market, AMD came second with 20% (a significant increase from 16% in Q2 2021), whereas Nvidia was No. 3 with an 18% market share (up from 15% a year ago).
PC makers and distributors typically reduce their orders to chip companies in the second quarter. Still, this time around, they reduced their purchases more significantly than usual, perhaps because they had stocks full of inventory and had to sell off what they had at their hands first.
“This quarter had overall negative results for the GPU vendors, compared to the last quarter,” said Jon Peddie, president of JPR. “Global events such as the continued war in Ukraine, Russia’s manipulation of gas supplies to Western Europe, and the subsequent nervousness those events create have put a dampener on Europe’s economy; the UK is in recession with high inflation. Forecasting has never been more challenging, and as a result, our forecast and others’ will get revised frequently as new data appears.”
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Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Not all that surprising. With the slow-motion collapse of crypto market, there are a lot of used mining rigs with high-end GPUs for sale right now on auction sites at discount prices, flooding the market. Add to that next gen GPUs and CPUs about to release and there is a perfect storm for dropping numbers.Reply
I ran into quite a few people that used the start of the Pandemic to start streaming. So many wanted to stream, and for some reason, they absolutely had to get high spec'd PCs. However, now, many of them realized that streaming was not for them.Reply
Then, we couldn't get the current gen consoles, so PC gamers that had consoles were like "good time to get the rig up to spec!" (which is exactly what I thought, plus I never get consoles close to their release years anyways)
To be clear, I would say the gamers and streamers were a small part compared to the miners.
Of course my old system was getting unstable at the time and it was time to upgrade... oh boy...
Gee, the excessive prices wouldn't have anything to do with it? GPU's are still no where near MSRP here. I would have replaced most of my 10 GPUs over the last two years if not for the ridiculous prices. I just bought my first GPU since 2019 a week ago.Reply
<sarcasm>Oh noes, Nvidia's sales are crashing! Time for Nvidia to divest itself of its GPU business!</sarcasm>Reply
I might actually buy a new GPU for myself - give myself the best gift this year, sorry honey, yet that gift you are giving me just is not the same. I was going to wait a couple more generations, yet AMD and nVidia can thank one of my cats for that (forced me to rebuild/upgrade my system earlier this year - the GPU is the only thing needing upgrading right now).Reply
Let see, as others have mentioned, crypto mining has gone bust, the new flu (COVID-19) is under control - so no more staying home, wanna be streamers are realizing it takes more than a good CPU and GPU combo - you also need some interesting content, prices are just now falling to an already inflated MSRP, and lets not forget that we know that the next generation of GPUs are just around the corner - both RDNA3 and Ada Lovelace will be introduced before the end of the year. Oh, least I forget, the board manufactures - like EVGA for example - have told nVidia that they have to clear out RTX 30#0 stock before they will purchase RTX 40#0 chips.
That last one, clearing old stock before manufacturing new GPUs will help with my purchase later this year. An older cat of mine nearly destroyed my computer, I had to replace my PSU, CPU (from Ryzen 5 2600 to Ryzen 5 5600), updated the motherboard (MB) from a 370 to a 570, and the new MB had a second M.2 SSD slot, so I added a gen 4 x4 SSD to do the heavy lifting (programs and OS) while my gen 3 x4 handles the data. If the new Ryzen 9 7950x was ready at the time I would not even consider replacing my GTX 1070 with a RX 6800 XT or RTX 3080 right now. Yet with me rebuilding my system one piece at a time (thank you Chubs) I might as well do so - once the prices fall more ;)
It perhaps was expected as everyone who wanted to get an AMD Radeon RX 6000-series or an Nvidia GeForce RTX 30-series graphics board had already done this.Seriously guys? Nothing to do with insane prices and crypto crashing? I've been wanting to get one but couldn't justify the pricing. Then for the last couple of months, a lot of people are all of a sudden waiting for 40 series and encouraging everyone to do the same.
IceQueen0607 said:Gee, the excessive prices wouldn't have anything to do with it? GPU's are still no where near MSRP here. I would have replaced most of my 10 GPUs over the last two years if not for the ridiculous prices. I just bought my first GPU since 2019 a week ago.
Not really. Most people who needed a GPU would have bought it 1-2yrs ago. During lockdown period there was a massive boost in sales.
Now lockdown is over, most pple already have their PCs. Sales will naturally come down. It's not just gpus, CPU sales drop a lot too.
Btw, you need to stop looking at end user sales. The bulk of GPU sales come from oems. Sales to end users actually makes up only a small percentage.
spomeniks said:Seriously guys? Nothing to do with insane prices and crypto crashing? I've been wanting to get one but couldn't justify the pricing. Then for the last couple of months, a lot of people are all of a sudden waiting for 40 series and encouraging everyone to do the same.
Not really. Most of insane prices and crypto actually affects end-user sales instead. The bulk of sales went to oem, not end users. Large companies like dell, hp, Lenovo etc have supply contracts, alot less susceptible to instance sale prices.
Volume sold to end users actually makes up only a small percentage of total sales. The bulk went to oems, the PC manufacturers. Now, these companies are reducing their orders so shipment is down.
Wait... AMD outsold nvidia?Reply
Someone noticed. I don't believe my eyes either. There must be an error, or APU's were included. Same goes for Intel. Cut the processors with iGPU and they are still insignificant.jp7189 said:Wait... AMD outsold nvidia?
Regarding the article:
Let's compare the sales to pre pandemic data. Recent two years were an anomaly. I for certain know that the store I work at has negative growth compared to last year. It had until I compared the data to 2019 and monthly sales were comparable if not better.
Nothing to be concerned about. Not unless you're a brick headed owner of shares who cares only about numbers in a spreadsheet.