Jon Peddie Research, the market research firm for the computer graphics industry, has released its quarterly “Market Watch” report on worldwide GPU shipments used in PCs for Q3 '18. It found that overall GPU shipments increased 10.64% from last quarter, AMD shipments increased 6.5%, Nvidia increased 4.3%, and Intel increased 13.1%.
AMD's market share from last quarter decreased -0.6%, Intel's increased 1.5%, and Nvidia's market share decreased -0.97%. Year-to-year total GPU shipments decreased -2.2%, desktop graphics decreased -16%, notebooks increased 7%.
"The effect of crypto-miningon desktop discrete GPU sales is over, leaving AMD and Nvidia with an oversupply in the channel and impacting shipment levels," said Dr. Jon Peddie, president of JPR. "The U.S. tax increase on products from China has had a small effect which may worsen in Q4. The drop in the U.S.
stock market has caused consumers and enterprise to hold off on purchases. All of that has contributed to the slow sell-off of inventory in the channel, which has reduced demand to the suppliers."
In the seasonal cycles of the past, the third quarter typically sees the strongest increase from the previous quarter. For Q3 '18, it increased 10.6% from last quarter and was above the 10-year average of -1.33%. This year, however, the increase was due to Intel catching up with its backlog; discrete GPUs were down.
AMD's overall unit shipments increased 6.51% quarter-to-quarter, Intel's total shipments increased 13.11% from last quarter, and Nvidia's increased 4.32%.
The attach rate of GPUs (includes integrated and discrete GPUs) to PCs for the quarter was 141% which was up 3.08% from last quarter.
Discrete GPUs were in 31.61% of PCs, which is down -3.54% from last quarter.
The overall PC market increased 8.22% quarter-to-quarter and increased 0.30% year-to-year.
Desktop graphics add-in boards (AIBs) that use discrete GPUs decreased -19.21% from last quarter.
Q3 '18 saw a decrease in tablet shipments from last quarter.
GPUs are traditionally a leading indicator of the market, since a GPU goes into every system before it is shipped, and most of the PC vendors are guiding cautiously for next quarter.
For those who wish to understand the PC market, an understanding of the highly complex technology and ecosystem that has been built around the GPU is essential to understanding the market's future directions.