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Graphics card AiB market report shows AMD at 29 per cent

by Mark Tyson on 23 November 2016, 10:01

Tags: AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

Quick Link: HEXUS.net/qadbgm

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Last week we saw Jon Peddie Research (JPR) publish a quarterly market watch report on GPUs. It showed that the CPU market was pretty healthy, up overall by 20 per cent from the previous quarter but more or less flat year-on-year. Now the research outfit has followed up with a report focussing upon the discrete GPU add-in board (AiB) market and how the major players are faring.

First of all the report indicates that market share movement from Q2 2016 to Q3 2016 is almost negligible. However as noted in the last report too, there has been a big seasonal upswing in GPU purchases. In Q3 2016 for AiB shipments that figure was up 38.2 per cent quarter to quarter (and gained 9.2 per cent year on year). Looking at the chart below shows that despite a big increase in discrete GPU sales the market shares between AMD and Nvidia remained remarkably stable over the quarter.

2016 has been very important for graphics card industry and enthusiasts, as it has seen both AMD and Nvidia push forward with long-awaited new architectures and a change in manufacturing processes. Considering the year on year figures it looks like AMD's Polaris has made the biggest splash with buyers this generation. AMD has impressively clawed back market share and is sitting at near 30 per cent now, compared with under 19 per cent a year ago.

Without doubt Nvidia still dominates, with a little over 70 per cent of the market. A positive for Nvidia we will likely see in a Q4 2016 report, if one is published, will be the market share impact of the recently released GeForce GTX 1050 and 1050 Ti cards. We describe these as mainstream cards and, living up to their name, they ship in much greater volumes than the upper echelon enthusiast models. In China, AMD has already reacted to the 1050 / 1050 Ti onslaught with its Radeon RX 470D.

Contrasting the fate of the general desktop PC market to the AiB market JPR points out that while over the year AiB sales were up 9.2 per cent, while desktop PC sales were 17.1 per cent down. It's easy to see why systems makers are targeting this vibrant 'gaming PC' market segment.

All charts and diagrams via JPR.



HEXUS Forums :: 5 Comments

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This is great news for the industry. Competition is good for everybody. Here's to hoping this development continuing towards more of a balance!
S3 need to up their game a bit though. My last S3 card was the Savage4 3D with S3TC. Not a bad bit of tech, but in need of an update I reckon. Still, the only way is up from their position…
Pleiades
S3 need to up their game a bit though. My last S3 card was the Savage4 3D with S3TC. Not a bad bit of tech, but in need of an update I reckon. Still, the only way is up from their position…
I used to have one of those, it was the PCI slot variant of it as well ;)
(upgrade for my crappy first ever PC)
The problem for AMD is what they were selling makes no profit, and now NV will be selling their cards in that segment also. I expect it to go back to 75/25 now that NV is in that game too. AMD chose the wrong path. The growth is in the TOP end, which is why NV made almost their 2007 profits in a single quarter this month. They should have put out VEGA first, then the junk last. I highly doubt the gpu side of AMD make much money if at all again. Market share means nothing if you have to give stuff away to get it.

It's like that old saying, it's the economy stupid. Well, in this case, it's the profits stupid. Go where they are at! ALWAYS. I'd rather fight over profits (especially when NV can't even provide enough cards to keep shelves stocked for months), than over cards that have near zero margins, just to claim some share gains. Vega might have done well against 1070/1080, but now it faces TitanX (already out) and coming 1080ti. My guess is 1080ti hits first to steal EARLY buyers and net the largest share of profits (jan), but maybe AMD will finally put out Vega (which has only been mentioned as early 2017, that can mean march). I don't expect vega to beat 1080ti anyway, but the quicker it gets out the more chances you get to nab high dollar buyers, that is for certain.
People might notice Q3 2016 has had the most graphics cards shipped of any quarter since 2014.



The biggest increases have happened in the sub $300 area. Apparently according to some reports AMD were actually supply constrained.

In a year they have gone from 18.8% marketshare to nearly 30% with no real competition to Nvidia at the high end.

Plus anybody looking at AMD financials would realise any losses have come from things like the WSA which has cost them like $1 billion in the last 5 to 6 years.

Also CPU consumers sales are rolled into their consumer GPU sales,so it is most likely their GPU section is doing OKish.

Zen is the most important launch AMD will have in a decade and that will determine if they sink or swim as a whole.

This is what is dragging them down the most.