Intel's share of the discrete GPU market drops to 0% as sales in the overall market increase

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Nvidia shows massive year-over-year growth.

Intel's headquarters in Santa Clara, Calif.
(Image credit: Intel)

According to Jon Peddie Research, shipment of discrete graphics cards for desktop PCs increased to 9.5 million units in the second quarter of 2024. However, only Nvidia benefited from the higher demand for standalone GPUs for desktops as it continued to dominate the market. By contrast, sales of AMD Radeon add-in-boards (AIBs) stagnated, and so did market share, whereas the share of Intel's Arc dropped to around 0%. 

GPU sales for desktop PCs totaled 9.5 million units in the second quarter, up around 9.4% sequentially and 48% year-over-year, according to JPR. Traditionally, shipments of standalone AIBs stagnate or drop in the second quarter compared to the first quarter, but that wasn't the case in 2024, as graphics card shipments increased, defying normal seasonality. 

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Anton Shilov
Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. 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.

19 Comments Comment from the forums
  • Gururu
    It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.
    Reply
  • Pierce2623
    Gururu said:
    It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.
    Yep a GPU that I won’t touch with a ten foot pole at $280, I’d happily try out at $150. The a580 at $100 could take the budget market by storm.
    Reply
  • thesyndrome
    Gururu said:
    It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.
    "Pride cometh before the fall"
    I'm guessing they didn't want to lose face by selling the GPUs at bargain-bin prices, but considering their current financial difficulties, this seems like a really bad decision.

    I'd probably pick up an A770 for $100 just to experiment with it, or to put it into a secondary PC that has a specific purpose outside of playing intensive games (like a media server or something)
    Reply
  • jlake3
    thesyndrome said:
    "Pride cometh before the fall"
    I'm guessing they didn't want to lose face by selling the GPUs at bargain-bin prices, but considering their current financial difficulties, this seems like a really bad decision.

    I'd probably pick up an A770 for $100 just to experiment with it, or to put it into a secondary PC that has a specific purpose outside of playing intensive games (like a media server or something)
    It would be a bad look to fire-sale the cards to that degree… and might actually cost them even more money? If there’s an official price change, they might owe AIBs and distributors a rebate on inventory in the channel. And it would make anyone still buying your cards mad that if they waited just a bit longer it would have been massively cheaper.

    If the contracts are written in a way where they don’t have to issue a rebate, then everyone is gonna try to cost average existing inventory with new inventory… but sales are poor and Alchemist is rapidly headed towards discontinuation, so discounts on future restocks aren’t a good incentive. And trying to stick partners with your mistakes is gonna burn the few bridges you barely built. There’s already rumors that one AIB is not coming back for Battlemage.

    Letting what little is left in the system drip through with a smallish promo might be seen as preferable to a big cash hit all at once that also torches your brand image.
    Reply
  • vanadiel007
    Never understood why they wanted to compete in that market segment. They should have competed in the mobile GPU market.
    Reply
  • Giroro
    It looks like sales of this generation overall are poor.

    If Intel cared about making moves to gain market share, they would have gotten Battlemage on store shelves by now. AMD's has the same problem with their strategy of always waiting for Nvidia to move first and copying their price/perf. You can't become a leader by being a follower.
    Reply
  • Giroro
    vanadiel007 said:
    Never understood why they wanted to compete in that market segment. They should have competed in the mobile GPU market.

    Because you can sell a GPU for the price of an entire laptop. The potential profit margins are a lot higher.
    Reply
  • Eximo
    They certainly did. Not too many discrete Arc mobile chips made it into desirable products.

    And they have switched over to Xe cores for graphics in general on the SoCs.

    Hard to sell laptop GPUs if you have no reputation. It would have been a different story if they had managed to deliver on time during the GPU shortages. A750 would have been a big hit if they hadn't delayed.
    Reply
  • Notton
    Gururu said:
    It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.
    The ARC cards were priced with almost no margin for Intel. If they sold them at cost, they would be canned by investors and you wouldn't even see Battlemage.

    If Intel drops out, Nvidia would have zero incentive to offer an RTX4060Ti 16GB for $200, which is what you really want.
    Reply
  • thestryker
    These figures are referring to shipments not sales which just means Intel isn't moving any new cards out. It makes sense that they're probably not manufacturing Alchemist GPUs still.
    Reply