Q3’24 Sees 14.5% Drop in PC Graphics Card Shipments, JPR Reports

The Latest on Graphics Add-In Boards

If you’ve been keeping an eye on the tech world, you might have noticed some intriguing news from the analyst firm Jon Peddie Research. Their latest report reveals that the global market for PC-based graphics add-in boards (AIBs) hit a notable milestone in Q3’24, with shipments reaching

8.1 million units

. Meanwhile, desktop PC CPU shipments surged to

20.1 million units

. Sounds promising, right? But here’s where it gets a bit murky.

AIB Growth: A Mixed Bag

Despite the uptick in shipments, the outlook for AIBs isn’t as rosy as one might hope. Over the next five years, the compound annual growth rate (CAGR) for AIBs is projected to be a rather bleak

-6.0%

. By the end of this period, we’re looking at an installed base of around

119 million units

. Interestingly, the penetration of AIBs in desktop PCs is expected to hover around

83%

. So, while AIBs are still a staple in our beloved desktops, the growth trajectory is definitely on the decline.

Market Share Shifts: Who’s Winning?

Now, let’s talk about the big players in this space. AMD and nVidia are like the classic rivalry we see in sports, and this quarter saw some slight shifts in their market shares. AMD’s overall AIB market share dipped by

2.0%

, while NVIDIA enjoyed a

2.0%

increase. These minor fluctuations may seem insignificant, especially in a generally down quarter, but for the winning company, it’s a sweet victory. However, the broader market dynamics remain largely unchanged—so, is this really a game-changer?

The Attach Rate Tells a Story

When we dig deeper, the overall attach rate of AIBs in desktop PCs fell to

141%

, a drop of

26.9%

from the previous quarter. This decline is noteworthy, especially considering that the desktop PC CPU market itself saw a

3.4%

decrease year-over-year but jumped

42.2%

quarter-over-quarter. It’s a classic case of supply and demand, where the fluctuations in CPU shipments directly influenced AIB sales.

Looking Ahead: What’s the Future Hold?

Dr. Jon Peddie, the president of JPR, paints a rather gloomy picture for the future. He notes that the long-term CAGR forecast is concerning, primarily due to anticipated higher end-user prices linked to projected tariffs. “We think the tariffs and lack of matching wage increases in the next two years will drive the US economy into a recession,” he warns. And it’s not just the US that could feel the pinch; other nations might also face the consequences as consumers tighten their belts.

So, what does all this mean for you, the consumer? As the landscape of AIBs and desktop PCs evolves, it’s essential to stay informed. Will you be upgrading your graphics card soon, or are you holding off in anticipation of better prices? The choices we make now could shape our tech experiences in the years to come.

Background Information

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About AMD:

AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

  

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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Technology Explained

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CPU: The Central Processing Unit (CPU) is the brain of a computer, responsible for executing instructions and performing calculations. It is the most important component of a computer system, as it is responsible for controlling all other components. CPUs are used in a wide range of applications, from desktop computers to mobile devices, gaming consoles, and even supercomputers. CPUs are used to process data, execute instructions, and control the flow of information within a computer system. They are also used to control the input and output of data, as well as to store and retrieve data from memory. CPUs are essential for the functioning of any computer system, and their applications in the computer industry are vast.

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