GPU Shipments Continued To Decline In Q1 2023: NVIDIA at 84%, AMD at 12%, Intel at 4% Market Share

Jon Peddie Research has just published the GPU market share results for Q1 2024 which show a big decline in shipments for NVIDIA, AMD & Intel.

GPU Market Slows Down, Hits Lowest Shipments In Over Two Decades: NVIDIA Retains Top Spot With 84% Share

According to the report, the overall GPU AIB market saw shipments decline by -12.6% versus the previous quarter and -38.2% versus the previous year. The attach rate did grow by a slight margin of 8% but compared to the previous year, that too declined by -21%. In terms of numbers, the AIBs shipped 6.3 million discrete graphics cards in the first quarter of 2023.

Quick Highlights

• JPR found that AIB shipments during the quarter decreased from the last quarter by 12.6%, which is below the 10-year average of -4.9%.
• Total AIB shipments decreased by -38.2% this quarter from last year to 6.3 million units and were down from 7.16 million units last quarter.
• AMD’s quarter-to-quarter total desktop AIB unit shipments decreased -by 7.5%.
• Nvidia’s quarter-to-quarter unit shipments decreased -15.2%. Nvidia continues to hold a dominant market share position at 83.7%.
• AIB shipments from year to year decreased by -38.2% compared to last year.

In terms of market share, NVIDIA's market share dropped to 84% but still retains the market leadership. Meanwhile, AMD's market share remained flat at 12% while Intel's market share saw growth to 4%.

“Shipments of new AIBs were impacted by turndown in the PC market due to inflation worries and layoffs, and people buying last-gen boards as suppliers sought to reduce inventory levels. With inventory being run down, sales of new-generation boards will pick up, but not until Q3. Q2 is traditionally a down quarter, and the year won’t be any different, but probably not as severe as might be expected,” said Jon Peddie, JPR founder and president.

JPR has been tracking AIB shipments quarterly since 1987—the volume of those boards peaked in 1998, reaching 116 million units. Since Q1 2000, over 2.13 billion AIBs, worth about $490 billion, have been sold.

via JPR

JPR points to this market outlook as a course correction and expects that the second half of this year will be much better since all vendors will have more affordable and mainstream options available for its consumers. NVIDIA recently introduced its GeForce RTX 4060 series graphics cards and has more affordable variants coming out in July. AMD also introduced the Radeon RX 7600 and has more options coming out too.

Meanwhile, both NVIDIA and AMD have older inventory that can be used to attract gamers in the mainstream and budget segment. Intel on the other hand is very active in the consumer segment and has some of the best performance/$ options available at the moment. The company has price dropped its Arc A750 offerings which can be found for as low as $199 US while the 16 GB Arc A770 is currently the most affordable 16 GB option under $300 US.

Although new graphics cards have been launched, consumers have shown little to no interest in them due to the obviously bad price-to-performance ratio. GPU vendors, especially NVIDIA, saw a big uptick in the prices this generation and while Ada's features and efficiency remain unrivaled, the graphics cards do cost a lot. At the same time, the mainstream RTX 4060 Ti and RTX 4060 are priced the same or lower than their predecessors but the performance gains aren't as significant when we look at something like the RTX 4090 and how its achieves over 50% uplift over the 3090s.

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