Demand for graphics cards dropped sharply in the third quarter of 2022, according to researchers at Jon Peddie Research (JPR) in a quarterly study of global sales of GPUs and CPUs with integrated graphics for desktops and laptops.
According to market researchers graphics processor manufacturers, such as Intel, AMD, and Nvidia, will struggle. In the third quarter of this year, worldwide sales of graphics processors decreased by 25.1% compared to the same period a year earlier. In total, it was 75.5 million units. This is the biggest decline since the 2009 recession, according to market researchers.
In particular, laptop GPU sales have dropped sharply. This decreased by 30% in the third quarter of 2022. The number of desktop GPUs sold decreased by 15.43%.
Reason for disappointing quarterly data
Researchers provide several reasons for the disappointing sales of GPUs and other graphics processors. Chinese government shutting down cryptocurrency mining, US sanctions, reduced consumer PC and laptop purchases due to economic conditions, lack of new gaming-specific GPUs or AIBs, and shortages of inventories contribute to the decline.
Market shares
Looking at the top three graphics processor manufacturers, Intel, Nvidia and AMD, it is evident that Intel sold the most graphics processors in the region in the last quarter. Of all processors sold, 72% came from this manufacturer, 16% from Nvidia and 12% from AMD. As a result, Intel’s overall market share increased by 10.3%, while those of the other two manufacturers, AMD -8.5% and Nvidia -1.87%, decreased.
Looking at the GPU segment for graphics processors alone, sales in the third quarter of 2022 overall decreased by 10.3% compared to the second quarter of this year. Here too Intel’s sales increased by 4.7%, while AMD sold 47.6% and Nvidia 19.7% less.
The positive development around Intel graphics cards may be due to users showing more interest in Intel Arc GPUs. These GPUs have hit the market later than expected due to the pandemic.
Expectations for the fourth quarter
For the fourth quarter, the market researcher expects the graphics processor market to remain challenging. Sales will also be disappointing this quarter, but average selling prices will be higher. That should offset some of the disappointing sales, so that “everyone is happy and having a good holiday,” according to JPR’s quarterly survey.
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