AMD's GPU Market Share Takes A Beating From Intel, Nvidia

rated by 0 users
This post has 17 Replies | 0 Followers

Top 10 Contributor
Posts 26,160
Points 1,185,365
Joined: Sep 2007
ForumsAdministrator
News Posted: Thu, Feb 20 2014 6:02 PM
The latest results from Jon Peddie Research are in, and they aren't overly encouraging for AMD. According to the firm, Sunnyvale's share of the graphics market tumbled in Q4 2013, despite significant price cuts and the launch of both the R9 290 and R9 290X. AMD's total GPU shipments fell by 10.4% quarter-on-quarter, while Intel's share increased by 5.1% and Nvidia grew 3.4%.

The total market for PC graphics increased 1.8% quarter-on-quarter, but was down 8.5% year-on-year. Unfortunately, this isn't expected to improve; JPR expects the industry to ship 446M units in 2014 and just 422M by 2017 as more customers move towards tablets and smartphones as primary gaming devices.

Mixed Messaging

If you're wondering how AMD could lose market share after slashing prices and launching two new, well-received GPUs in Q4, the answer is easy: They didn't. JPR reports that AMD's share of the APU-powered desktop market jumped 15% in Q4, but those healthy gains were offset by a 26.7% decline in notebook APUs. Discrete graphic shipments in desktop grew 1.8%, but notebook discrete declined by 6.7%. According to JPR, the problem here is structural -- AMD missed notebook vendor deadlines to have parts ready for validation.

Nvidia, meanwhile, grew its desktop shipments by 3.6% and its notebook discrete by 3.2%. Overall shipments grew by 3.4% year-on-year. AMD lost 5.4% in total GPU shipments in 2013 compared to 2012, while Nvidia picked up 0.9% and Intel grew 5.4%. The following chart summarizes the current situation:



AMD Duels With Cryptocurrencies, Maxwell

AMD has a tall order on its hands if it wants to regain market share. We'd bet that at least some of the gains in desktop would be larger if the company's graphics products weren't suffering from runaway inflation thanks to cryptocurrency miners. When AMD GPUs that are supposed to sell for $179 are instead retailing at $249 (and its NewEgg setting the prices), then AMD customers who would have bought at $179 will walk away at $249 or settle for an Nvidia product. It's not clear if JPR captures channel sales or not, but either way, there are buyers who might go with AMD if the company's prices were actually where they ought to be.

Maxwell, meanwhile, is poised to make trouble for AMD throughout 2014. The card's strong power efficiency (and the existence of a mobile part) means that AMD has a challenge facing it later on this year. The company's efforts to slash prices on GCN have been tremendous for consumers, but not with rampant demand from cryptocurrency miners gumming up the works.
  • | Post Points: 260
Not Ranked
Posts 3
Points 15
Joined: Apr 2013

Unsurprising.

  • | Post Points: 5
Not Ranked
Posts 40
Points 260
Joined: Mar 2011
OOs replied on Thu, Feb 20 2014 7:05 PM

That's totally normal.

  • | Post Points: 5
Top 500 Contributor
Posts 102
Points 1,315
Joined: Jun 2010

First, I can't imagine market share would be calculated by ignoring channel sales as they are a large part of the shipments. That notwithstanding, I'm still unsure about the assertion that retail markup is affecting market share. Retailers are marking up the cards because demand is still present at those levels, and the product shortages in Q4 indicate they were selling all they could make. It would seem then that a production shortfall hindered market share more than pricing.

  • | Post Points: 5
Top 100 Contributor
Posts 1,012
Points 9,455
Joined: Mar 2012
Location: LA, CA
sevags replied on Thu, Feb 20 2014 7:41 PM

Owell :)

  • | Post Points: 5
Top 100 Contributor
Posts 1,101
Points 11,165
Joined: Jun 2010
Location: Pennsylvania
CDeeter replied on Thu, Feb 20 2014 7:42 PM

Intel makes discreet cards? Huh I thought they only had integrated graphics on their CPUs, and as such, would they really count as "graphics" chips?

The article makes passing reference to APUs, so maybe they are including integrated.

  • | Post Points: 5
Top 100 Contributor
Posts 1,072
Points 11,625
Joined: Jul 2009
Joel H replied on Thu, Feb 20 2014 7:51 PM

CDeeter,

This article includes both integrated and discrete. An Intel chip contains a GPU, those these GPUs are counted as part of the integrated market.

JTurnbull,

Here's the problem with the graphics card share.

We have two different markets for AMD graphics. Gaming, where they are highly competitive with Nvidia, and cryptocurrency, where AMD GPUs possess a large advantage over NV. Because AMD has a large advantage in the cryptocurrency market, miners are willing to pay more for those GPUs.

But that means *gamers* (who do have other options) are more likely to buy from Nvidia as a result. Why? Because while cryptocurrency miners will pay a premium for AMD's unique performance in this market, for gamers, NV cards are an acceptable substitute.

Now, ordinarily, you could just argue that a GPU sale is a GPU sale, right? No big deal. Except in this case, AMD is trying to get Mantle off the ground. That means it needs to move as many AMD GPUs as possible into the hands of *gamers* to justify why developers should bother with the new API.

Nobody wants to pour work into supporting an API when the company behind it has only a marginal share of the market. So selling GPUs into cryptocurrency hurts the possibility of future Mantle adoption.

Finally: Because AMD isn't the company setting the retail prices, AMD isn't taking home any of the profit from this surge in demand. If AMD was making an extra $40 per GPU and could put that money back to work, I'd agree that this was closer to a net positive. But since it's Amazon and NewEgg making all the premium, AMD isn't actually benefiting much from the demand.

  • | Post Points: 5
Not Ranked
Posts 4
Points 20
Joined: Oct 2013
DanBorin replied on Thu, Feb 20 2014 8:01 PM

How tho, people are buying amd cards like crazy! for Litecoin and dogecoin.

  • | Post Points: 5
Not Ranked
Posts 78
Points 520
Joined: Apr 2013

Because vendors are raping us with absurd prices and there is a serious shortage of cards.

  • | Post Points: 5
Not Ranked
Posts 42
Points 330
Joined: Apr 2013

I just got 3 780TI's for $700 each. if amd would have a card as good as them, I would have bought them.

  • | Post Points: 5
Not Ranked
Posts 20
Points 135
Joined: Jul 2013

well if people could afford them

  • | Post Points: 5
Not Ranked
Posts 33
Points 250
Joined: Jun 2013
EzHunt replied on Fri, Feb 21 2014 5:22 AM

hmm nv 16% for stand alone cards- amd is 18% for both apu and stand alone together. As for compute cards- amd is only good for mining- for everything else like folding or cad or supercomputing nv is best and nv is the best gaming card best image quality best Physx and has less probs vs anything amd and people will pay the nv premiums. Next gen consoles will not last a year- low end maxwells are already being sold- nv cards and dx still out perform mantle and amd hardware and games tweaked to use it- they amd will never force ms or windows to change from dx to mantle. Amd can not multi thread in windows. Nvidia is just fine- amd like always is best on paper and cheap laptops. Lol the games amd gives away is worth more than their graphics cards- if made for amd games they are not so great- are not as pretty are more buggy and even they run better on nvidia hardware. AMD is cheap generic budget junk- amd kool-aid or ox cart vs intel nvidia coke a cola or a car.. Intel Nvidia & W7 FTW :)

  • | Post Points: 5
Not Ranked
Posts 1
Points 5
Joined: Feb 2014

It's up 18% lol over nvidia and intel

  • | Post Points: 5
Not Ranked
Posts 1
Points 5
Joined: Feb 2014

:o

  • | Post Points: 5
Not Ranked
Posts 4
Points 35
Joined: Oct 2013

amd cards sold out everywhere and they say its sales is dropping....sorry, what?

  • | Post Points: 5
Not Ranked
Posts 4
Points 35
Joined: Oct 2013

amd cards sold out everywhere and they say its sales are dropping....sorry, what?

  • | Post Points: 5
Top 500 Contributor
Posts 102
Points 1,315
Joined: Jun 2010

@JoelH: If you change your statement to say "gaming marketshare" is affected by cryptocurrency, then that's correct. But you mentioned "desktop" (vs notebook), which doesn't differentiate between gaming or cryptocurrency.

Your point about the retailers being the beneficiary of the markup is also correct, and that's why I pointed out the situation would be more regrettable if AMD had cards unsold, such that they were actually losing out on sales.

  • | Post Points: 5
Page 1 of 1 (18 items) | RSS