JPR: Graphics Add-in Board Market Continued its Correction in Q1 2023

[AleksandarK]

According to a new research report from the analyst firm Jon Peddie Research, unit shipments in the add-in board (AIB) market decreased in Q1 2023 by -12.6% and decreased by -38.2% year to year. Intel increased its add-in board market share by 2% during the first quarter.

The percentage of AIBs in desktop PCs is referred to as the attach rate. The attach rate grew from last quarter by 8% but was down -21% year to year. Approximately 6.3 million add-in boards shipped in Q1 2023. The market shares for the desktop discrete GPU suppliers shifted in the quarter, as AMD's market share remained flat from last quarter. Intel, which entered the AIB market in Q3'22 with the Arc A770 and A750, gained 2% in market share, while Nvidia retains its dominant position in the add-in board space with an 84% market share.




Market share changes from quarter to quarter and year to year.

Quick Highlights

• JPR found that AIB shipments during the quarter decreased from the last quarter by 12.6%, which is below the 10-year average of -4.9%.
• Total AIB shipments decreased by -38.2% this quarter from last year to 6.3 million units, and were down from 7.16 million units last quarter.
• AMD's quarter-to-quarter total desktop AIB unit shipments decreased -7.5%.
• Nvidia's quarter-to-quarter unit shipments decreased -15.2%. Nvidia continues to hold a dominant market share position at 83.7%.
• AIB shipments from year to year decreased by -38.2% compared to last year.

"Shipments of new AIBs were impacted by turndown in the PC market due to inflation worries and layoffs, and people buying last-gen boards as suppliers sought to reduce inventory levels. With inventory being run down, sales of new-generation boards will pick up, but not until Q3. Q2 is traditionally a down quarter, and the year won't be any different, but probably not as severe as might be expected," said Jon Peddie, JPR founder and president.

C. Robert Dow, analyst at JPR, noted, "Q1 2023 saw the AIB market still facing the consequences for oversupply in the market caused by pandemic-era supply chain inconsistencies and orders. The second half of 2023 promises to be brighter. AMD reported that channel sales grew sequentially for the Radeon 6000 and Radeon 7000 series GPUs. Intel, once again, committed to their next-generation Battlemage family of GPUs, bringing more competition into the gaming add-in board market, and Nvidia released its first 60 series add-in board in the Ada Lovelace family. The 60 series line of AIBs are traditionally Nvidia's most popular with gamers."

JPR has been tracking AIB shipments quarterly since 1987—the volume of those boards peaked in 1998, reaching 116 million units. Since Q1 2000, over 2.13 billion AIBs, worth about $490 billion, have been sold.

View at TechPowerUp Main Site

 

[Dragokar]

Well at first they overstocked, then they overpriced and now some people have simply better things to care about than GPUs. Also, some of the "latest and greatest" offerings arent good at all.

 

[Daven]

I’m not going to comment on JPR numbers. They are crap and not useful in anyway and I wish TPU would stop peddling their nonsense.

However, what is useful is ‘sales’ (not shipments) based on knowledgeable customer preference. The current top page TPU survey sheds some light on these numbers. A customer with anywhere from some to a lot of PC knowledge typically decides between components based on some to a lot of research. Sales numbers based on the metric of preference is very useful information if you are deciding how to invest.

For sure, Nvidia is dominate. However, I would venture to guess that Intel sales based on preference are so low to be unmeasurable and AMD numbers are closer to 30% AIB market share.

Another way to understand market share is through earnings reports. Luckily AMD and Nvidia both have a Gaming category. While this category between the two companies doesn’t 100% overlap, it is pretty close to allow understanding of chips sold to AIB companies and no Nvidia doesn’t have SEVEN TIMES the gaming category revenue of AMD.

 

[Timbaloo]

Another way to understand market share is through earnings reports. Luckily AMD and Nvidia both have a Gaming category. While this category between the two companies doesn’t 100% overlap, it is pretty close to allow understanding of chips sold to AIB companies and no Nvidia doesn’t have SEVEN TIMES the gaming category revenue of AMD.

Gaming includes consoles, right? There you go.

 

[Daven]

Gaming includes consoles, right? There you go.

I’m not 100% sure if that goes into gaming or embedded. I think you are right but AMD revenue from consoles is pretty small so it doesn’t make up for the discrepancy in AMD vs Nvidia gaming revenues given the seven times market share JPR craps out of their asses. Plus Nvidia has a lot higher prices than AMD and sells top end cards but still the revenue isn’t so much different. To add more possible evidence, Nvidia doesn’t have much in the way of low margin budget cards to have the high market share due to sales of tons of cheap cards. In fact, Nvidia is running from cheap.

 

[Timbaloo]

I’m not 100% sure if that goes into gaming or embedded. I think you are right but AMD revenue from consoles is pretty small so it doesn’t make up for the discrepancy in AMD vs Nvidia gaming revenues given the seven times market share JPR craps out of their asses. Plus Nvidia has a lot higher prices than AMD and sells top end cards but still the revenue isn’t so much different. To add more possible evidence, Nvidia doesn’t have much in the way of low margin budget cards to have the high market share due to sales of tons of cheap cards. In fact, Nvidia is running from cheap.

Games consoles now deliver fully one quarter of AMD's revenues

With PC graphics on the slide, the consoles keep on trucking.

www.pcgamer.com

Not sure how reliable of a source that is, but that report tells quite the opposite.

And despite the current clickbaiters focus on higher-end GPU prices, NV does still sell 16xx cards etc. So it's not like NV only sells extremely high-priced cards.

 

[kapone32]

I’m not 100% sure if that goes into gaming or embedded. I think you are right but AMD revenue from consoles is pretty small so it doesn’t make up for the discrepancy in AMD vs Nvidia gaming revenues given the seven times market share JPR craps out of their asses. Plus Nvidia has a lot higher prices than AMD and sells top end cards but still the revenue isn’t so much different. To add more possible evidence, Nvidia doesn’t have much in the way of low margin budget cards to have the high market share due to sales of tons of cheap cards. In fact, Nvidia is running from cheap.

Here is some anecdotal data. Right now the Steam Deck is the number 2 best seller on Steam and it would seem you can only buy the ROG ally from Best Buy as an exclusive meaning they paid for that right. Before all of that there have been AMD handhelds coming out of China for years and especially since AM4. I was watching a video where the provider showed you could order an AMD PC (4850) with 8GB of RAM and a 256GB SDD for $123 US. I posted in the latest Tech purchase one of those hard drives that has the library of video Games from 1980s-1990s covering DOS, AMIGA, DREAMCAST etc that he used in the video.

 

[64K]

I guess there are a lot of reasons for the continued slowdown in dGPU sales. imo the top two reasons are extremely high prices and concerns about the economy. I see it posted on forums over and over that a lot of gamers are not going to upgrade as frequently as they have done in the past. They are making do with what they have for now.

 

[claes]

I’m not going to comment on JPR numbers. They are crap and not useful in anyway and I wish TPU would stop peddling their nonsense.

Why though? AFAICT JPR’s numbers tend to align with earnings reports, although the latter are much more vague in that they don’t separate AICs from embedded or consoles and so on.

Gaming includes consoles, right? There you go.

Yes, according to earnings reports.

Games consoles now deliver fully one quarter of AMD's revenues

With PC graphics on the slide, the consoles keep on trucking.

www.pcgamer.com

Not sure how reliable of a source that is, but that report tells quite the opposite.

AMD confirmed as much in their earnings report and in their shareholders call.

 

[mama]

Unit shipment decrease may be a sign of price manipulation. It has nothing to do with actual sales.