NVIDIA And AMD Reportedly Heading For Soft GPU Demand In Q4 Due To Low Cost Notebook Launch

Intel and Microsoft have been working with laptop makers to release low-cost models capable of competing in price with Google's Chromebook movement, hence why we're starting to see Windows-based laptops selling for as little as $199. In order to get down to that range, however, certain sacrifices must be made, such as eliminating discrete GPUs from the equation. For this reason, it's expected that AMD and NVIDIA will see a decline in overall GPU demand during the last quarter of this year.

According to Digitimes and its sources within the supply chain over in Taiwan, AMD and NVIDIA are savvy to this trend towards ultra low-cost laptops and have decided to focus their respective efforts on mid-range and high-end notebook segments, essentially conceding the entry-level market in the process.

NVIDIA GeForce GTX 880M

This is a continuation of a trend that's already begun. Based on Jone Peddie Research's data, discrete graphics card shipments in the second quarter of 2014 sank 17.5 percent sequentially to 11.5 million units. This was mainly the result of competition from CPUs with integrated GPUs, which dominate the entry-level market.

The introduction of Intel's Broadwell architecture could also negatively affect AMD and NVIDIA in the graphics department. It's still early, but based on what we've seen from Broadwell so far, the future of mobile looks promising, even if it comes at the expense of discrete GPU shipments.

Via:  Digitimes
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