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Nvidia strengthens positions as market of graphics cards shrinks

Nvidia Corp. has managed to increase its share in the market of standalone graphics cards for personal computers, according to Jon Peddie Research. The market of graphics adapters for desktops in Q1 2015 decreased again to a new low in years, which is an alarming sign for developers of graphics processing units and makers of graphics boards.

Shipments of graphics cards in the first quarter of 2015 decreased to 11.3 million units, an 8.79 per cent drop quarter over quarter. On a year-to-year basis, JPR found that total AIB shipments during the quarter fell 19.41 per cent, which is more than desktop PCs, which sales fell 6.52 per cent.

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As expected, sales and market share of Advanced Micro Devices’ Radeon graphics cards declined in the first quarter as the company and its partners were trying to sell-off inventory that had been shipped earlier. AMD’s quarter-to-quarter total desktop graphics cards shipments decreased by whopping 14.6 per cent. By contrast, Nvidia managed to increase its market share to 77.5 per cent in Q1 2015, a record high for the company in the recent years. Nonetheless, since the market was generally weak, sales of Nvidia GeForce graphics cards for desktops also dropped by 7 per cent sequentially.

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According to analysts from Jon Peddie Research, shipments drop of add-in graphics cards is seasonally understandable and everything could have been worse. Still, the overall trend is not good for discrete desktop graphics adapters: the attach rate of graphics boards to desktop PCs has declined from a high of 63 per cent in Q1 2008 to 37 per cent in Q1 2015. Nevertheless, gamers continue to buy expensive graphics cards to enjoy the latest titles.

“However, in spite of the overall decline, somewhat due to tablets and embedded graphics, the PC gaming momentum continues to build and is the bright spot in the AIB market,” said Jon Peddie, the head of JPR.

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KitGuru Says: Given the lack of any announcements from AMD in the second quarter of 2015, do not expect many changes in shipments or rankings in Q2 as well. Nvidia will continue dominating the market of discrete desktop graphic cards this quarter and only sometimes in Q3 2013 AMD will finally be able to boost its sales.

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  • Agent Awesome

    It seems like AMD’s Re-Branding and Allways Delay approaches slowly killing them and at the mean time NVIDIA gradually strengthens their share.

    I didn’t wonder at all.

  • Naeem ur Rehman

    so ur telling me once amd rebranded 7970 to 280x nvidia did not rebranded 680 to 770 ? how about 760 ? the only issue on AMD side is that they don’y do anything on time

  • This doesn’t look any good. AMD is sinking, NV has no will to push anything stronger than overprices Titan X (as it was with 780Ti) and whats more important which newest titles (lets say in last year) really scream for more power justifying expenses: GTA V, Witcher 3? All that sad ports form console world like another Assasin or COD? I’m not saying it’s over, personally im going for TX SLI (with 3xFHD switched to 3x1440p/144) but most players with 1080p really have any need for newer cars?

  • JonFX01

    Postponed products that work properly are good for the consumer, but missing opportunities is horrible from a business standpoint.

  • JonFX01

    Re-branding (too much of it) is only a side-effect of the real problem.

  • looks like pc market is shrinking again. This is why the companies like Intel or Nvidia are not pushing the technology as much as they can since the market is not growing.

  • sibeer

    Pretty sure this trend happens every time a new console generation starts to get established. When people start to really demand the next tech (likely 4K and/or VR) and get bored of the new consoles the demand will probably swing back again.

  • KainArkanos

    The PC market is not simply shrinking on its own, and its sure as hell not shrinking just because of this ‘new console generation’ which is actually pretty pathetic compared to all previous generations. If Intel and Nvidia actually innovated correctly, they’d be seeing massive sales because people would have a reason to buy, especially people looking to upgrade. Me personally, I have no incentive to put in money and upgrade from my i7-3820 nor will probably have any reason whatsoever when Nvidia’s Pascal GPUs come out to upgrade because they’re hiding all their good shit in the back to try and maximize their profits, something that is, unfortunately, the thing that is failing them the most.

  • Jo Blo

    “and only sometimes in Q3 2013 AMD will finally be able to boost its sales.”

    Why only in 2013?

  • Johnny Wong

    “only sometimes in Q3 2013 AMD” 2013??