Jon Peddie Research (JPR) has released a follow-up to its recent GPU sales report, this time specifically targeting the graphics add-in-board market. As the GPU sales report includes AMD’s (NYSE: AMD) APUs and many new Intel (NASDAQ: INTC) CPUs which have GPU cores, the AIB report is a more specific barometer of the health of the video card market overall.

According to JPR’s report, sales of AIBs declined 17.5% quarter-over-quarter and 17.6% year-over-year. In comparison, last year’s quarter-over-quarter rate for the same period was 5.5%. This comes in the face of an overall PC market that’s improving quarter-over-quarter by 1.3%.

The attach rate to 36%, down from 44% last quarter. The record for attach rate remains at 63% during the first quarter of 2008.

Breaking down the sales numbers by vendor, Nvidia (NASDAQ: NVDA) fared the worst in terms of decreases, taking a hit of 21%. AMD had a decline of 10.7%.

Despite having the bigger decline than AMD, Nvidia still remained the market leader holding 62% market share overall.

Not Just an Integrated Problem

It would be easy to blame the great GPU decline on the success and competitiveness of CPU-GPU integration. Both AMD and Intel’s offerings have substantially and consistently improved over the past few years, so much so that they are taking a bite out of the discrete graphics card market.

But for enthusiast gamers, the need for a discrete card will never go away. This is the market group that has the budget and willingness to spend on serious GPU horsepower. But there’s a problem: the discrete graphics cards that this group bought last year, or even the year before, are good enough for the majority of today’s games.

4K gaming, which has the potential to drive more GPU sales, is increasing fast but still in its infancy. Until affordable 4K displays hit the mass market, this market segment can’t mature from niche to mainstream. Also, another factor is that game developers generally try and build games for the Xbox One and Playstation first then port later to PC. This means that this generation of graphics cards are hardly pushed to their respective limits. Until 4K gaming becomes mainstream, or developers start to create games that push these latest graphics cards, it will be hard for GPU vendors to convince gamers they need a new graphics card.

The post Report: Graphics Add-In-Board Market on The Decline appeared first on VR World.

According to Jon Peddie’s latest GPU marketshare numbers for Q1 2014, the add-in board market shrunk 0.8% year over year and a more expected 6.7% quarter over quarter. Most people expect GPU seasonality between Q1 and Q4 regardless of what year it is, but the 0.8% decrease year over year is still an indication of basically flat growth/slight shrinkage. Even though, this is significantly less than in laptops and the overall PC business in terms of shrinkage. for the GPU market as a whole, shipments were down 11.6% quarter-to-quarter, and down 4% compared to the same quarter last year. This is clearly a lot worse than what we’re seeing from the discrete add-in board market.

Additionally, much like we saw in laptop and desktop graphics, the add-in board market saw the complete elimination of two minuscule competitors and their market share. According to Jon Peddie Research’s estimates, the GPU market for add-in boards is now between AMD and Nvidia GPU, period. However, Nvidia was able to maintain their 65% market share over AMD’s 35% marketshare, meaning that over the course of the last quarter both companies effectively sold at the same rate as another, contrary to what some might lead you to believe. Total shipments decreased this quarter to 14 million units with both AMD and Nvidia reporting quarter to quarter shipments decreasing 6.6%.

This is still better, however than the 9% reduction seen in the overall PC market, indicating that desktop GPUs with add-in cards and add-in card sales overall are far less impacted by the shrinkage of the PC market than some analysts would lead people to believe.  However, GPUs are usually a pretty good indicator of future growth since many of these cards have to be purchased prior to their integration, which means that most PC vendors will likely see a fairly flat growth for the next quarter, which is basically in line with most predictions of PC shipments.

The post Desktop GPUs Shrunk in Q1, Nvidia Held Marketshare appeared first on VR World.

According to Jon Peddie’s latest GPU marketshare numbers for Q1 2014, the add-in board market shrunk 0.8% year over year and a more expected 6.7% quarter over quarter. Most people expect GPU seasonality between Q1 and Q4 regardless of what year it is, but the 0.8% decrease year over year is still an indication of basically flat growth/slight shrinkage. Even though, this is significantly less than in laptops and the overall PC business in terms of shrinkage. for the GPU market as a whole, shipments were down 11.6% quarter-to-quarter, and down 4% compared to the same quarter last year. This is clearly a lot worse than what we’re seeing from the discrete add-in board market.

Additionally, much like we saw in laptop and desktop graphics, the add-in board market saw the complete elimination of two minuscule competitors and their market share. According to Jon Peddie Research’s estimates, the GPU market for add-in boards is now between AMD and Nvidia GPU, period. However, Nvidia was able to maintain their 65% market share over AMD’s 35% marketshare, meaning that over the course of the last quarter both companies effectively sold at the same rate as another, contrary to what some might lead you to believe. Total shipments decreased this quarter to 14 million units with both AMD and Nvidia reporting quarter to quarter shipments decreasing 6.6%.

This is still better, however than the 9% reduction seen in the overall PC market, indicating that desktop GPUs with add-in cards and add-in card sales overall are far less impacted by the shrinkage of the PC market than some analysts would lead people to believe.  However, GPUs are usually a pretty good indicator of future growth since many of these cards have to be purchased prior to their integration, which means that most PC vendors will likely see a fairly flat growth for the next quarter, which is basically in line with most predictions of PC shipments.

The post Desktop GPUs Shrunk in Q1, Nvidia Held Marketshare appeared first on VR World.