Q2 2018 add-in board Graphics Card report shows declining market

by Hilbert Hagedoorn on: 09/07/2018 03:15 PM | source: jonpeddie | 28 comment(s)

In a new report from JPR they measure that the add-in board market for graphics cards decreased in Q2'18 from last quarter, while Nvidia gained market share. Over $3.2 billion dollars of AIBs shipped in the quarter.

The market shares for the desktop discrete GPU suppliers shifted in the quarter, Nvidia increased market share from last quarter, while AMD enjoyed an increase in share year-to-year. Add-in boards (AIBs) using discrete GPUs are found in desktop PCs, workstations, servers, rendering and mining farms, and other devices such as scientific instruments. They are sold directly to customers as aftermarket products or are factory installed by OEMs. In all cases, AIBs represent the higher end of the graphics industry with their discrete chips and private, often large, high-speed memory, as compared to the integrated GPUs in CPUs that share slower system memory.

Market share changes quarter-to-quarter, and year-to-year

The PC AIB market now has just two chip (GPU) suppliers which also build and sell AIBs. The primary suppliers of GPUs are AMD and Nvidia. There are 48 AIB suppliers, the AIB OEM customers of the GPU suppliers, which they call "partners."

In addition to privately branded AIBs offered worldwide, about a dozen PC suppliers offer AIBs as part of a system, and/or as an option, and some that offer AIBs as separate aftermarket products. We have been tracking AIB shipments quarterly since 1987-the volume of those boards peaked in 1999, reaching 114 million units, in 2017, 52 million shipped. Since 1981, 2,070 million AIBs have been shipped.Q2 is normally down from the previous quarter. This quarter it showed a decrease of 28.0% that is -18.2% below the ten-year average of -9.8% which is very low when compared to the desktop PC market, which decreased 3.4% quarter-to-quarter.

The relative changes from quarter-to-quarter are illustrated in the following chart.

Shipments of desktop PCs compared to desktop AIBs over time

On a year-to-year basis, we found that total AIB shipments during the quarter fell 5.7%, while desktop PCs rose 8.8% for the same quarter a year ago, this discrepancy reflects the weakening Crypto-mining market.

Overall, AIBs shipments had been declining slightly, but not as great as the PC due to gaming and Crypto-mining. In 2015 when the use of AIB for cryptocurrency mining became widespread, AIB sales started to rise while PC sales fell. In Q1'18, the demand for AIBs for Crypto-mining ended due to a change from an Ethereum consensus based on the Proof of Work (PoW) system to one based on the so-called Proof of Stake. That change dramatically reduced the need for localized memory, and that made expensive AIBs no longer needed. Also, the price of Ethereum dropped.

However, despite the overall PC churn, somewhat due to tablets and embedded graphics, the PC gaming momentum continues to build and is the bright spot in the AIB market. The impact and influence of eSports has also contributed to the market growth and attracted new users. VR continues to be interesting but is not having a measurable influence on the AIB market. The gaming PC (system) market is vibrant. All OEMs are investing in the gaming space because the demand for gaming PCs is robust. Intel also validated this on their earnings call when they announced a new Enthusiast CPU. However, it won't show in the overall market numbers, because like gaming GPUs, the gaming PCs are dwarfed by the general-purpose machines.

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[ZoNk]Kostas007
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#5582285 Posted on: 09/07/2018 03:51 PM

No shit.
Especially amd is expecting us to pay 300euro to buy an overclocked 480 that calls it 580, and is barely faster.
No thank you.

Petr V
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#5582290 Posted on: 09/07/2018 04:05 PM

Kostas007, post: 5582285, member: 97840"]No crap.
Especially amd is expecting us to pay 300euro to buy an overclocked 480 that calls it 580, and is barely faster.
No thank you.

It´s good for miners they will buy it.

rl66
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#5582328 Posted on: 09/07/2018 05:45 PM

Also now the IGP and APU are enough powerfull to run 80% of what you expect of a familial PC... and so kill the add on GPU like even GTX 1050 or RX550 and 560.

ObscureangelPT
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#5582453 Posted on: 09/07/2018 11:51 PM

@rl66 Those APUs only get to a 1030/RX 550 level.
Altough like you said, it's more than enough to play most games (especially Esports like games) at reasonable framerates and 1080P/Sub-1080P resolutions,
I reckon for most kids these is more than enough to get them into PCGaming, even most Intel IGPs from the laptops are just fine as long as you put another ram on them to make dual channel and jump from 64 bit memory bandwidth to 128 bits...

dean469
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#5582490 Posted on: 09/08/2018 04:02 AM

Not to mention, nothing "NEW" has come out in way too long. No reason for most people to upgrade. Re-hash of same old, same old. I would assume most are waiting until the new generations of cards come out.

I know I am.

jaggerwild
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#5582491 Posted on: 09/08/2018 04:11 AM

$1,500 for a new video card!!!! I can see how the quarter is down as miners flooded in for gpu's a few months ago, now there out for a while.
Ill buy Vega64, which weighs in just under a 1080. Simply wait till price's come back to earth. Maybe PC gaming is a thing of the past........run its course.

Dimitrios1983
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#5582495 Posted on: 09/08/2018 04:53 AM

Also now the IGP and APU are enough powerfull to run 80% of what you expect of a familial PC... and so kill the add on GPU like even GTX 1050 or RX550 and 560.

When the AMD RX560 4GB first came out it had the full 16 CU's & 1024 Stream Processors on a fully enabled Polaris 11 GPU, GCN 4, 3B transistors, used around 60 watts etc...... and most were limited to the power source from the motherboard. I have the one that has the extra power connector and you can clock it up pretty good even using AMD's GLOBAL WATTMAN (POWER LIMIT SLIDER from stock 0% to max at 75%) Also there are 7 Stages for both MEMORY & and GPU for best power consumption and you can change it to the higher levels but you better have the card that has the extra power connector. The simplest is to disable any power savings feature and that's the most I can recall for this post for tonight. People talk shit about that card but it ain't no slouch and my older card gave out and it was during the mining craze and for $130ish brand new was a good deal even during the crazy prices and low supply of cards if not most cards being sold out. Been meaning to upgrade but this card is still doing the job max settings at 1080p and each driver versus APU's which only do driver updates ONCE EVERY 6 MONTHS! lol.

cowie
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#5582496 Posted on: 09/08/2018 04:58 AM

cod fortnight and gta run just great on a consoles so do many other games and the xbox live cards just fly off the racks from best buy to 7-11
do you think its the graphics settings that draw so many to gaming?
I started on consoles then played on pc and with all sorts of new stuff to play with would never go back for a fps type game now with everything else not so much.
we need border line gimmicy stupid cool stuff only for pc again, something and I am not talking about rtx just in genaral like every few months new options something for its gone nowhere for awhile even with the pushed for w10 dx12.if we get more then one company trying to do that it will come around well that and some new products of all types and ranges.
what a great time for a eco gamer 350usd 1080 killer ....Turing who? it would sell in droves just because its new and a lay men could afford it
that said I don't think the pc master race has gotten smaller its the middle ground that's happy with a console and their phone/tablet

K.S.
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#5582515 Posted on: 09/08/2018 08:03 AM

Looking forward to Q1 2020 reports especially. Well till now we had Mining drop - so I shouldn't be too surprised with this report. There's been the issue of competition this past year that couldn't compete on par with NVIDIA's too.

(Not directly related to this report - below)
Cowie mentioned console consumers likely being on the rise; that wouldn't surprise me in the least. PC-exclusives minus the niche indie market or rare AAA are a thing of the past.

D3M1G0D
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#5582622 Posted on: 09/08/2018 07:18 PM

No surprise. Q2 coincides with the decline of cryptocurrencies so it makes sense for GPU sales to drop. It also explains the decline of AMD cards, since they were the main focus of miners.

devastator
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#5582673 Posted on: 09/09/2018 12:55 AM

new slogan Nvidia = just buy it

BlueRay
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#5582708 Posted on: 09/09/2018 07:52 AM

But but RTX, it just works....
The GPU market and the whole PC market is in bad shape lately.
Monopolies, price fixes and hikes killing the PC market.
Some decided that PC gaming is only for the few privileged with deep pockets.
The only good thing lately is that SSDs prices are falling down.
By the time the PC hardware returns to normality (if it does) PS5 and the next gen consoles will be released.
Now it was a good time to draw console people to PC gaming and make the average PC gamer to upgrade hardware.
But no lets double the price to everything.
At least we can now enjoy 1080p 40FPS RTX cinematic experience.
Sigh.................

Neo Cyrus
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#5582712 Posted on: 09/09/2018 08:44 AM

new slogan Nvidia = just buy it

No it's "Just preorder it even though there is no information available on it and there is no advantage to pre-ordering it. We're a monopoly, deal with it."

robintson
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#5582724 Posted on: 09/09/2018 10:22 AM

PC Gaming is dying and Nvidia is killing it this time with insane pricing of RTX series of graphics cards. Now it is obvious that Nvidia cares only for "profit" by doubling up the prices in 2018. This prices are targeted for "mining" , not for gaming and not for gamers, that is for sure.

TheDeeGee
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#5582726 Posted on: 09/09/2018 10:38 AM

Maybe Nvidia could stop smoking what they smoke and use normal pricing?

Just a thought... i mean what do i know.

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