Sales of desktop discrete graphics cards hit a record low in 2023Q1
Over the past three and a half years, the sale of discrete desktop graphics cards has experienced a rollercoaster of extreme highs and lows. In the aftermath of the COVID-19 outbreak, an increased demand for home entertainment, combined with a surge in cryptocurrency markets, led to a persistent shortage and elevated prices of these GPUs. However, a combination of relaxed pandemic management policies, cryptocurrency market crashes, and economic downturns precipitated a dramatic plunge in shipments, reaching the lowest point since 2005 in last year’s third quarter.
Recently released market data from Jon Peddie Research (JPR) reveals that after a rebound in the fourth quarter of 2022, sales of discrete desktop graphics cards continued to contract in the first quarter of 2023. Dealers and OEM manufacturers persist in their inventory reduction strategies, pushing sales volumes to a new nadir unseen for decades. Sales of discrete desktop graphics cards for the first quarter of 2023 are estimated at about 6.3 million units, representing a 12.6% sequential decline and a 38.2% year-on-year drop, falling below the 6.9 million and 7.43 million units of the third and fourth quarters of 2022, respectively.
Nvidia continues to dominate with an 84% market share, selling roughly 5.29 million discrete desktop graphics cards, marking its poorest performance in years. AMD takes the second spot with a 12% market share, shipping approximately 760,000 units; it appears that the Radeon RX graphics cards have settled into a pattern of sub-million sales each quarter. Unlike Nvidia and AMD, who are downsizing their inventory, Intel increased the supply of its Xe graphics cards in the first quarter of 2023, shipping around 250,000 units and securing a 4% market share.
Jon Peddie, President of Jon Peddie Research, posits that the PC market is languishing due to inflation worries and widespread corporate layoffs, leading suppliers to further reduce inventory levels. Many consumers opt to purchase older-generation products, which in turn impacts the shipment of new ones. The second quarter traditionally experiences a decline, and this year is projected to follow suit. However, with the reduction of inventory and manufacturers’ marketing efforts for new products, a rebound in sales is anticipated by the third quarter.
