GPU shipments dive in 4Q08

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from digitimes:

http://www.digitimes.com/news/a20090202PR203.html



Jon Peddie Research (JPR) has announced estimated graphics shipments and supplier market share for the fourth calendar quarter of 2008.

GPUs are used in industrial and medical systems, point of sale terminals, kiosks, digital signs, and PCs. And, in the case of over one third of all PCs being shipped today, more than one GPU is being used. Total shipments of GPUs for the fourth quarter of 2008 were 72.35 million units. During the same quarter last year, 100.5 million GPUs were shipped, and in the previous quarter, 111.26 million units shipped representing a 35% drop on quarter and a 28% drop on year.

This is the first time fourth quarter shipments have decreased compared to third quarter since 2000, pointed out JPR.

Everyone in the market suffered reduced shipments – some more than others. During the quarter, Nvidia took back some market share from AMD's ATI division.

While the quarterly results for the fourth quarter of 2008 were obviously unusual, it is perhaps slightly less surprising considering that the third quarter was also a surprise in the other direction. Shipments for the third quarter of 2008 were unusually high, even for the traditionally high third quarter. In talking to vendors in related industries we have seen the same scenario playing out – a robust third quarter and a much slower fourth quarter, said JPR.

The desktop has been on a slow but steady glide path down as the market seeks a new level. The rate of decline accelerated at the end of 2008. It is hoped that the desktop market will level off in 2009 as some desk workers rely on workhorse desktop machines and companies take advantage of attractive prices for more powerful desktop machines.

Nvidia has held a slight edge in the desktop segment with a market share of 37.9%. The company has gained on Intel. AMD also raised its market share on the desktop from 20.3% in the third quarter to 21.4% in the fourth quarter. Given, the tough circumstances of this quarter, AMD's increase is no mean accomplishment.

In the fourth quarter of 2008, 37.45 million units shipped for the desktop, a 39.5% drop compared to the previous quarter. In comparison, 34.89 million units shipped for the notebook. Even though shipments of notebooks are reaching the crossover point compared to desktop machines, there are still more desktop graphics devices shipping than notebook graphics devices because desktops are more likely to have more than one graphics board to support Crossfire and SLI configurations, and also because of double connect – machines that have both an IGP and discrete graphics chip in the same system.

While not exactly a bright spot for AMD, Intel and Nvidia did see slight increases in notebook shipments. Overall notebooks were down 29% compared to the previous quarter.

"The fourth quarter is usually a positive quarter for the computer industry. There has obviously been some inventory problems in the quarter as sales failed to live up to the optimistic expectations of the third quarter of 2008," said Dr Jon Peddie, president of Jon Peddie Research. "Vendors were bracing for a slower than usual quarter due to economic factors, but performance this quarter was surprisingly low. Put simply, the market stalled in the fourth quarter. Due to the worldwide financial market meltdown, the US housing market meltdown, layoffs, and media reports, the consumer has hunkered down to wait out the storm.

"We are forecasting a strong third and fourth quarter for 2009 and bracing for what will probably be the worst first and second quarter decline we've seen since the Internet bubble pop of 2000."
 
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