Seasonality and worldwide recession to blame
TIBURON, CA-August 23, 2011—Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced estimated graphics Add-in Board (AIB) shipments and sales' market share for Q2'11. The AIB Report tracks graphics board which carry discrete graphics chips. They are used in desktop PCs, workstations and some other devices such as scientific instruments. They may be sold as after-market products directly to customers or they may be factory installed. In all cases, they represent the higher-end of the graphics industry as discrete chips rather than integrated processors.
Overall shipments of graphics AIBs for the quarter came in below the last quarter at 16.1 million units compared to 19.01 million for Q1'11.
The evolution of the graphics market has resulted in two major super-categories of graphics AIBs: those which carry Nvidia graphics chips and those which carry AMD chips. Nvidia GPU-based boards declined slightly by 0.1% from Q1, while AMD-based boards increased 0.1% for the same period. Sales of AIB products have been directly impacted by the rise of integrated CPUs from Intel and AMD, which have increasingly powerful graphics.
Shipments during the second quarter of 2011 behaved according to past years with regard to seasonality but were lower on a year-to-year comparison for the quarter. Q2'11 was down from the previous quarter by 15.2%, and the ten year average for the quarter is -11.2%.
Our forecast for the coming years has been modified since the last report, and is less aggressive on add-in boards (AIBs) due to the prolonged worldwide recession and the impact of embedded graphics on the low end.
The quarter in general
In terms of market share, market leader Nvidia lost share by 0.1% from Q1, 2011, while AMD's market share increased 0.1% for the same period. On a year-to-year basis AMD lost market share by 0.8% while Nvidia gained 1.1% of market share. Obviously, these are not huge moves in the market and Nvidia still leads in unit shipments.
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Over 16 million AIBs shipped in Q2 2011. Nvidia was the leader in unit shipments for the quarter, elevated by double attach and GPU-compute/CUDA sales.
The AIB market is fueled at the high-end by the enthusiast gamer, small in volume (~3m a year) but high in dollars (average spend for an AIB ~$300). The AIB shipment volume comes from the Performance and Mainstream segments. GPU-compute is adding to sales on the high end. The Workstation Market is smaller in unit sales than the enthusiast segment but characterized by even higher average selling prices (ASPs) (average spend for an AIB ~$415).
For the year, the AIB market is expected to hit $13.8 billion, down 33% from 2010 due to a pull back by consumers and a gradual decline in ASP.
The JPR AIB report covers seven regions and reports on the value of AIB sales and units in those regions.