GPUs Fall Below 10-Year Average

As the PC market fell in Q2’16, largely due to data centers and servers, shares in the GPU market shifted. AMD rose while Intel and Nvidia fell.

PC shipments were up 1.06% QoQ but down 5.83% YoY. Some vendors have hopes for high ASP systems like gaming desktops/notebooks and convertible PCs. However, these segments can only contribute around 10 million units per year: that’s less than the decline of the total PC market.

At the same time as the PC decline, GPU sales also fell. Shipments were down 4% QoQ and 10% YoY (desktops -6% and notebooks -12%).

The results were not unexpected, as the GPU market tends to decline in Q2, although the 4% fall was below the 10-year average of -2.44%. AMD was down 1.4%, Intel 0.7% and Nvidia 20% QoQ. Most vendors are guiding cautiously for Q3’16.

The attach rate of GPUs in Q2’16 (includes integrated and discrete) was down 7% QoQ to 132%. Desktop graphics add-in boards (aka graphics cards) using discrete GPUs fell 20.81% QoQ. At the same time, JPR data shows that discrete GPUs were in 27.8% of PCs, which is down 4.9%.

Total Graphics Chips Market Shares, Q2’16
Vendor Q2’16 Q1’16 QoQ Share Change YoY Share Change
AMD 13.5% 13.2% 0.4% 2.8%
Intel 72.6% 70.1% 2.4% -2.7%
Nvidia 13.9% 16.7% -2.8% -0.2%
Others 0.0% 0.0% 0.0% 0.0%
Source: JPR

AMD’s shipments of APUs (heterogenous GPUs/CPUs) for desktops fell 22.2% QoQ. Shipments were down 0.4% in notebooks. Desktop discrete GPU shipments rose 4% and notebooks fell 3.7%. Total PC graphics shipments were down 1.4% QoQ. Share rose 2.8% YoY.

Intel’s desktop processor embedded graphics (EPGs) shipments were down 4.5% QoQ, while notebook processors rose 1.4%. Total PC graphics shipments fell 0.7%. Share was down 2.7% YoY.

Discrete desktop GPU shipments were down 28.2% QoQ at Nvidia, while notebook discrete shipments fell 5.7%. Total shipments were down 20% QoQ, and share fell 0.2% YoY.

Overall, discrete GPU shipments were down 14.2% QoQ and 1% YoY. Overall, JPR says that the CAGR for these products from 2014 to 2017 is -8%.