CLARIFICATION: Please note that due to retroactive changes of share distribution by price band by Nvidia Corp., which may be a consequence of incorrect initial reporting of graphics processor sales and market value, some numbers within this news-story may be different compared to similar news-stories posted earlier.
After record fourth quarter and unprecedented demand for discrete graphics cards late in 2007, supplies of add-in graphics boards collapsed in Q1 2008, data released by Jon Peddie Research reveal. Perhaps, more importantly, average selling price per graphics card also dropped significantly to below $150 level.
According to numbers released by JPR, 94.88 million graphics adapters were shipped in Q1 2008, of which 62.3 million graphics adapters were for desktops and approximately 32.6 million graphics solutions for mobile systems. 24.4 million of graphics adapters for desktops were standalone add-in cards (25.71% of all graphics adapters or 39.16% of desktop graphics cores), which sales dropped by 8% quarter-over-quarter, but grew 18.1% year-over-year.
“When considering the cyclical nature of the business, a soft first quarter shouldn’t surprise. Especially in a market where the consumer is a major driving force, Q1 often exhibits some ‘holiday hangover’ from Q4. Add in the normal, periodic jostling of vendors’ product lines, and while Q1 2008 results might at first appear disappointing, they were not out of line with expectations,” said Jon Peddie, the head of Jon Peddie Research, in a statement.
But while it was predictable that the market of graphics adapters in general and the market of standalone add-in graphics boards for desktops in particular would decrease in Q1 2008, the drops appeared to be pretty dramatic. Revenues got 20.8% lower sequentially and grew just about 0.2% annually. Moreover, average selling price of a graphics card collapsed to $145.6 from $169.28 in the previous quarter.
Among developers of graphics processing units (GPUs), ATI, graphics product group of Advanced Micro Devices, and Nvidia Corp. neither gained nor lost position in the market, maintaining the previous quarter’s 35% and 65% shares, respectively.
Comments currently:
11
Discussion started: 05/20/08 04:45:21 PM
Latest comment: 05/26/08 11:44:01 AM
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[1-9]
1.
Its about time. I know its not good for the companies to make less money but they were charging way too much a short while ago.
I got my 8800GTX shortly after it dropped and it cost me $650 dollars. I can get 2 9800GTXs for that much now. Makes me a bit sour but i'll live, I know that is the way it goes.
I simply like that you get so much more for your dollar right now.
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Posted by: iLLz
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Date: 05/20/08 04:45:21 PM]
2.
That's because the high end 9xxx series was basically not all that impressive, at least if you were coming from a 8xxx series.
Wait till you see Q4 of '08. After the initial wave of first adopters the 280/260 series are going to fall flat on their face. Why? No 10.1 support. It won't matter what 10.1 gives, the fact that a refresh will be around the corner that will include 10.1, or that you can get 10.1 from ATI will decimate sales.
And the 9xxx mobiles are a joke, much like their desktop counterparts. Those will languish for longer, more like a year or more as the 280/260 MOBILE chips will take a year or more to come to market because there is just no way to make that hot a chip into a mobile. They'll have to wait for a 45nm version and that's FAR, far away.
2008 is going to be a pretty unimpressive year for Nvidia. And 2009 brings Larrabee and that will take the wind out of 2009 too.
Nvidia is starting to remind me of Creative...
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Posted by: FXi
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Date: 05/20/08 05:56:07 PM]
3.
i like pie charts... where are the fucking pie charts for christ sake... i like pie also...
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Posted by: THX...
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Date: 05/20/08 07:34:38 PM]
4.
Nvidia "managers" are busy talking how AMD will lose, however they abviously did not read news here on xbit labs :)
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Posted by: BorgDrone
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Date: 05/21/08 04:49:18 AM]
5.
why everyone is complaining about nvidia? if you don't like what they do, go back to 1980 and use calculators instead of real computers.
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Posted by: curious george
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Date: 05/21/08 09:23:40 AM]
+ expand thread (1 answer)
- collapse thread
AMD/ATI is making Directx 10.1 calculators.
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Posted by: BorgDrone
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Date: 05/21/08 01:52:46 PM]
6.
Not suprising. How long did they think the consumers would keep shelling out £300+ for the latest and best graphics card? Especially when they are not even effectively used, and get superceeded iwhtin months.
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Posted by: irfan
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Date: 05/21/08 02:29:34 PM]
+ expand thread (1 answer)
- collapse thread
I'm glad somebody gets it.
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Posted by: EndPCNoise
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Date: 05/21/08 09:56:44 PM]
7.
i wish people would stop comparing quarter 4 to quarter 1 and yelling that the sky is falling every year. do you honestly expect q1 sales to exceed holiday sales?
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Posted by: nubbey
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Date: 05/22/08 12:41:03 AM]
8.
Discrete gfx is on the way out. Integrated is on the way in!
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Posted by: awr
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Date: 05/25/08 12:56:00 AM]
9.
No one is to blame for this but nvidia itself. The people that bought 8800 GTX / GT didn't want to bother upgrading to the 9XXX series because the cards were barely an upgrade. If nvidia was smart they would have made the 9xxx series much more impressive. Then they would have actually sold something.
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Posted by: Myth
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Date: 05/26/08 11:44:01 AM]
[1-9]
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