A Significant Drop In The New GPU Market; The Second-Hand Market Soars!

General news News Tech Tech News 11/23/2022

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TECH NEWS – Nvidia, AMD, and Intel better prepare for dire times because the situation doesn’t look rosy.

The GPU makers have been on a massive upswing in recent years due to crypto, but this has meant that the graphics card prices have skyrocketed. This trend seems to end: we could be in for a vast turnaround. The market for new graphics cards has hit the ground at a rate not seen since the financial crisis of 2009. It has mainly affected AMD. Their market share fell by 8.5%, and their shipments by 47.6%. For Nvidia, the GeForce RTX 4090 distorts the situation but still saw its share fall by 1.87%, while the size of its shipments shrank by 19.7%. Intel’s share grew by 10.3% and its shipments by 4.7%, although they are a minor player in the discrete graphics card market.

“All the companies gave various and sometimes similar reasons for the downturn: the shutdown of crypto mining, headwinds from China’s zero-tolerance rules and rolling shutdowns, sanctions by the US, user situation from the purchasing run-up during Covid, the Osborne effect on AMD while gamers wait for the new AIBs, inflation and the higher prices of AIBs, overhang inventory run-down, and a bad moon out tonight… Generally, the feeling is Q4 shipments will be down, but ASPs will be up, supply will be fine, and everyone will have a happy holiday,” wrote Jon Peddie, an analyst.

The GPU’s overall attach rate (which includes integrated and discrete GPUs, desktops, notebooks, and workstations) to PCs for the quarter was 115%, down 6.0% from last quarter. The PC CPU market decreased by 5.7% from quarter to quarter and 18.6% from year to year. Desktop graphics add-in boards (AIBs that use discrete GPUs) decreased by 33.5% from the last quarter. This quarter saw a 0.5% change in tablet shipments from last quarter.

So the new graphics cards could be in for a significant slump (Nvidia’s RTX 4080 isn’t selling at all: it’s too expensive). Still, the used market could be in for a serious boost as the market becomes saturated with video cards formerly used for crypto mining. Only some people want to upgrade when the previous generation or one before it still offers solid performance…

Source: WCCFTech

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Angyal Anikó

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