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 (opens in new tab). 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.”
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...
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 ;)
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.
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.
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.