GPU shipments have seen an unexpected upturn this quarter, as Jon Peddie Research (JPR) reports that the dwindling PC industry may see a comeback in the coming days.
GPU Industry Sees Hope For Recovery, Price-Drops Acting as a Catalyst For Positive Growth
Based on statistics released by JPR, GPU shipments have seen a significant rise, leading to an 11.6% sequential increase from the previous quarter. While the firm doesn't cite a particular reason behind this unusual bump in sales, we believe it has something to do with the wave of price drops that companies like AMD are implementing along with the normalization of the PC industry which is also reported by NVIDIA during the recent earnings call, allowing users to switch to the next-gen platform much more quickly.
A prime example of "price-drop" waves is the recently discounted AMD's Radeon RX 7600, which retailed at Microcenter for $229. Several RDNA 3 GPUs have reached rock bottom regarding prices; similar is the case with Ada Lovelace GPUs. JPR discloses that OEM and retail channels restocked their GPU supplies since the old inventory was cleared out, and demand for next-gen GPUs is at its highest this year.
Other factors could include the rise in laptop and desktop CPU shipments as all of AMD's modern APUs and CPUs are now equipped with an IGPU and since these statistics cover the overall GPU segment, these numbers also include those.
- The GPU’s overall attach rate (which includes integrated and discrete GPUs, desktops, notebooks, and workstations) to PCs for the quarter was 115%, down -2.6% from last quarter.
- The overall PC CPU market increased by 15.0% quarter to quarter and decreased -23.0% year to year.
- Desktop graphics add-in boards (AIBs that use discrete GPUs) increased by 2.9% from the last quarter.
- This quarter saw -31.9% change in tablet shipments from last quarter.
Company-wise, AMD was in the lead regarding GPU shipments, witnessing a 22.9% quarterly jump, while NVIDIA and Intel shipments increased by 7.5% and 11.7%, respectively. The statistics here justify our statement about AMD and their aggressive price drop approach in the RDNA 3 lineup, which is probably the main driver behind a positive quarterly report.
However, despite a positive quarter, YoY total GPU shipments (including discrete and mobile) are still in the negative zone, reaching -27%; however, hopes for recovery are yet again reignited. While the market can't return to its previous "prime" days, it will improve in the upcoming quarters, given that consumer interest remains in next-gen GPUs.
Q2 was surprisingly up, significantly up, led by AMD in growth and by Nvidia in total shipments. Nvidia had their best results in notebooks, AMD did well in desktops, and Intel had year-to-year overall growth. The suppliers are bullish and expecting a strong third quarter, which is normal—if things will ever be normal again.
Whereas the increased shipments are welcome good news, the overall PC market and, therefore, the GPU market, has been on a steady decline since 2010. And so, if the market has indeed turned around, it’s not going to get to the levels it was 10 years ago
-JPR
Price drops in AMD Radeon GPUs have worked out for the company, as it has paved the way for an economic rebound in the industry. We hope that the situation improves for the GPU industry since it has been witnessing declining revenue in several past quarters, which has ultimately impacted both businesses and consumers.
JPR also shares the CPU segment results with Notebooks dominating over Desktops. The Notebook share saw an increase in shipments to 72% while desktops fell to 28%.
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