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Thursday, February 2, 2023

GPU Market Tumbles as Sales Observe a Massive Drop in Buyers

Since the recession of 2009, the GPU market has hit an all-time low

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Aditya Saikrishna
Aditya Saikrishna
I am 21 years old and an avid Motorsports enthusiast.

INDIA: According to a report by Tom’s Hardware, an online publication focused on technology, the GPU market is witnessing a massive drop in shipments of GPUs. The deliveries of GPUs, both discrete and integrated, have dropped to a 10-year low in the third quarter (Q3).

According to the report, purchases of existing GPUs by gamers have fallen, while PC OEMs have decreased their purchases of CPUs as they wait for the most recent, more powerful cards to hit the market.

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On the other hand, with the recent changes to Ethereum, crypto miners who also kept GPUs for their mining efforts stopped buying GPUs. As a result, sales of standalone graphics cards for desktop computers have dropped to an all-time low.

To assemble and sell computers during the holiday and back-to-school seasons, PC manufacturers frequently place additional orders for PC hardware components in the third quarter when they see the most sales.

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However, there has also been a decrease in PC demand, which has led manufacturers to reduce their purchasing and sell off any remaining stock.

According to a report from Jon Peddie Research, this has led to a decline in integrated and discrete GPU sales to 75.5 million units in Q3 2022, which is down 10.5 percent sequentially and 25.1 percent year-over-year.

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In addition, desktop GPU shipments decreased by 15.43%, while notebook GPU shipments decreased by 30%, the most significant decline since the recession of 2009.

Intel is currently the biggest CPU manufacturer and the biggest PC GPU supplier. In Q3 of 2022, Intel increased its dominance and commanded 72% of the PC GPU market, as sales of its proprietary GPUs increased by 4.7%.

On the other hand, Nvidia lost 19.7% of sales, resulting in a 16% share reduction. While AMD’s share dropped to 12% as its GPU shipments decreased by 47.6%.

According to a statement released by Jon Peddie, president of Jon Peddie Research, the companies gave “various and sometimes similar” reasons for the low sales of CPUs.

The obstacles posed by China’s zero-tolerance policies and rolling shutdowns, US sanctions, the purchasing situation of users during Covid, and overhang inventory run-down, are just a few of the factors that have contributed to the shutdown.

Also Read: NetEase Shares Collapsed after the End of Its Blizzard Partnership

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