Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen wanderer for the clue delivery! Graphics card performance is flat can not sell out, NVIDIA and other manufacturers can still sit still?

Desktop discrete graphics cards have plummeted to their lowest level in 20 years!

Shipments of desktop stand-alone devices in the third quarter of this year were disastrous, setting a 20-year low, according to Jon Peddie Research.

After years of epidemic, mine disasters and gradual liberalization, it is not surprising that the graphics card market has this day.

Although sales volume is low, unit price is high, leek tube enough compared with a year ago, independent GPU shipments have been reduced by 42%.

During the epidemic, the demand for graphics cards once increased significantly because of home office, remote online classes, etc.

With more scenes and tighter entertainment, many people will choose to spend more time playing games at home.

Others are busy mining.

The world today is not yesterday's world.

In a matter of months, Ethereum died and the world reopened, resulting in a sharp drop in demand for desktop stand-alone displays.

In the third quarter, discrete graphics for desktops shipped about 6.9 million units, including the best gaming graphics; discrete graphics for notebooks, about the same number.

AMD, Intel and Nvidia shipped about 14 million standalone devices for desktops and laptops, down 42 percent year-over-year, according to JPR. Meanwhile, integrated GPU shipments in Q3 2022 were approximately 61.5 million units.

Desktop standalone add-on boards (AIBs) shipped 6.9 million units, the lowest number of graphics cards shipped since the third quarter of 2005.

You know, independent AIB sales in the early 2020s are very strong, because the integrated GPU is not good enough at that time.

Shipments of desktop graphics cards in the third quarter of 2022 hit a 20-year low, but it's a sure thing.

Although the overall market is cold, there are several companies that maintain good momentum.

Despite slowing demand for desktop discrete graphics (down 31.9% year-over-year), Nvidia not only maintained its lead, but also consolidated its position with 86% market share, its highest ever.

AMD, by contrast, has not been so lucky, dropping its share to around 10%, its lowest market share in decades.

Intel did not fare badly either, capturing 4% of the desktop standalone GPU market in just a quarter of the time.

Why is that? The reason is that most AIB parts sold by Intel in the third quarter of 2023 are entry-level models, but Intel's customers need these parts due to factors such as brand awareness.

However, there is a problem with desktop AIB sales compared to the early 2000s.

In the early 2000s, standalone notebook GPU shipments weren't as strong as they are today, simply because there weren't as many laptops to sell.

So in a normal quarter, the sales of standalone GPUs for desktops and laptops are probably more or less consistent with what we saw 15 to 17 years ago.

As graphics cards become more expensive, AMD and Nvidia have not made less money in recent years.

As everyone waited for Nvidia's GeForce RTX 40 and AMD's Radeon RX 7000, sales of integrated and standalone GPUs plummeted in the third quarter, while PC makers struggled to run out of CPUs in stock.

As a result, the overall market plunged 25.1% year-over-year, but the market for standalone GPUs has plunged 42% year-over-year.

Jon Peddie Research said in a report that the decline in GPU sales in the third quarter experienced the largest decline since the 2009 recession.

However, if you look at the desktop GPU market for a long time, you will know that there are worse things to come.

After the mine disaster, although the shipment of graphics cards has been greatly reduced, the retail price of GeForce RTX 40 has been rising all the way.

Wallace made a detailed comparison.

In the third quarter of 2017, when the GTX 10 series graphics card sold well, the original price of the graphics card was as follows.

Now, the price of a card is equivalent to about 2.0 to 2.28 graphics cards in 2017, and now a new card can be worth two original cards.

Therefore, although the current sales volume is low, it does not affect the manufacturers to earn a lot of money, especially AMD and NVIDIA.

It's just that their strategy has changed to giving priority to selling cards to rich people. A card when two cards to sell, first cut a rich leek. Price reduction is not discussed again, anyway, since it can still be cut, it will be for a while.

What do you think? Let's see what netizens think about GPU sales bottoming out this year.

The answer to this question is: "This year's graphics card is the highest sales point in the next 20 years, and the record will be refreshed every year to create a new minimum."

Simply put, the quality of the graphics card has not improved much, and the price is not low.

He complained that three years ago, the price of 1099-1199 could buy GTX1650 SUPER (running score 4701), and the RX6500XT running score that could be bought three years later only increased by 270 points, which is a bit unreasonable.

At the end of 19 years, 2500 yuan can still buy 2060 SUPER running 8780 points.

Now, RTX3060 12G, which can be bought for 2500 yuan, has only 8738 running points. It can be said that there is no improvement at all, and it may be a mine card.

As soon as it came and went, the sales volume of graphics cards naturally went down.

Some netizens said that it is not the graphics card that cannot be sold, but the price is too high, some people are in a wait-and-see state, and some people buy low-priced mine cards, and the shipment volume of new goods is naturally worse than a year.

For AMD and NVIDIA, the graphics card price is high and the profit is high. Although the shipment volume is small, it has little impact on the overall revenue.

The sword of victory believes that the domestic GPU market is now in the game stage between manufacturers and consumers. After that, whether the sales volume drops to break the revenue balance, or the manufacturers continue to cut leeks at high prices, or it depends on the market.

But at the same time, for manufacturers, this balance point is already on the verge of being broken.

According to Nvidia's second-quarter earnings report, total revenue in the second quarter was $6.7 billion, net profit was $656 million, down 72% from the same period last year, and game display card sales were nearly halved.

In addition, gaming GPU revenue fell 51% year-on-year in the third quarter, down 23% from the previous three months.

AMD, on the other hand, had a tough time, as gaming GPU revenue grew during the period, but only because sales of high-end console chips offset a decline in PC GPU shipments.

NVIDIA's measures are to adjust the sales price and inventory of graphics cards to reflect the market.

The RTX 30 series graphics card with the price dropped first, the RTX 30 graphics card with the price of 24,000 yuan, the cost of 8000 yuan, and the profit of the next graphics card before the gross profit margin was 16,000 yuan.

It was equivalent to earning two dollars for one card. Now, selling one card could only earn about the profit of one card.

According to Ray88, the graphics card of a few years ago can play most games; the game market has also changed, and the desktop alone is naturally not so popular.

References:

https://www.theregister.com/2022/11/23/gpu_shipments_dive/

https://www.tomshardware.com/news/sales-of-desktop-graphics-cards-hit-20-year-low

https://www.zhihu.com/question/575415798

https://www.zhihu.com/question/575415798/answer/2821630882

This article comes from Weixin Official Accounts: Xin Zhiyuan (ID: AI_era), edited by Joey Aeneas

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