JPR: Notebooks Dragging Down PC Market

Both corporations and users continue to lengthen their PC refresh rates, prolonging the PC market slide, says Jon Peddie Research (JPR). Once again, the gaming market (which uses high-end GPUs) was the stand-out segment for the market in Q1. The overall PC market was down 10.6% YoY and 15.1% QoQ.

Notebooks were responsible for holding back PC market results., with YoY GPU shipments falling 22%. Desktop GPU shipments were down just 6%, by comparison, for a total overall GPU fall of 16%. On a quarterly basis, GPU shipments were down 15% (below the 10-year average of 3.6% for Q1). AMD fell 5%, Nvidia fell 15% and Intel was down 17%.

The attach rate of GPUs (including both integrated and discrete) was 139%, down 0.2% QoQ. Discrete GPUs were in 32.8% of PCs, which is up 1.5%.

GPUs, which are built into every PC before it is shipped, are a leading indicator of the PC market. Most PC vendors are guiding cautiously for Q2’16.

Top Vendors’ GPU Market Shares, Q1’16
Vendor Q1’16 Share Q4’15 Share QoQ Share Change Q1’15 QoQ Share Change
AMD 13.2% 11.8% 1.5% 0.4%
Intel 70.1% 71.6% -1.5% -2.1%
Nvidia 16.7% 16.6% 0.0% 1.7%
Others 0.0% 0.0% 0.0% 0.0%
Source: JPR

AMD’s shipments of desktop heterogenous GPUs/CPUs (APUs) was down 16.8% QoQ for desktops, but flat in notebooks. Desktop discrete GPUs rose 12.9% and notebooks fell 9.1%.

Intel’s desktop processor embedded graphics (EPG) shipments were down 14.8% QoQ; notebooks were down 18.1%. Total PC shipments fell 16.9%.

Nvidia’s desktop discrete GPU shipments rose 2.7% QoQ, while discrete notebook GPU shipments fell 34.9%. Total PC shipments were down 15.1%.

Total discrete GPU shipments fell 11.2% QoQ and 4.4% YoY. Overall, JPR reports that the CAGR of discrete GPUs from 2014 to 2017 is now -8%.