The latest data from Jon Peddie Research indicates a positive trend in graphics card sales, with an increase for the third consecutive quarter. Comparing the figures from Q4 2023 to the same period in 2022, there is a significant 32% year-on-year increase in sales volume. This growth is certainly promising for the industry as a whole.
While the overall sales numbers are looking up, the same cannot be said for AMD’s market share in the GPU sector. Despite a slight improvement from 12% in Q4 2022 to 19% in Q4 2023, AMD’s latest GPU family, the RX 7000 series, is underperforming in terms of market share compared to previous generations. In fact, it is the worst-performing family of GPUs for AMD in over 20 years, according to Jon Peddie’s data.
Looking back at the historical data provided by Jon Peddie Research, it is evident that AMD has been struggling to compete with Nvidia in the GPU market for quite some time. The trend of declining market share for AMD started during the GeForce 900 and Radeon R200 era and has continued to the present day. Despite occasional spikes, such as the success of the RX 5000 series, AMD has not been able to sustain a significant market share over the years.
The success of the RX 5000 series in terms of market share raises questions about AMD’s strategy for future GPU releases. With rumors circulating about AMD focusing on the mid-range market rather than the high end, there is speculation that the company may prioritize a more limited range of GPUs to maximize market share. This approach could lead to a higher market share with lower capital expenditure, making it a viable business strategy for AMD.
While the recent increase in graphics card sales is a positive sign, it is essential to note that the volumes are still lower than during the peak of the pandemic boom. JPR’s data shows that there were several quarters with sales exceeding 10 million units, with some even reaching 12.5 million units. The current sales figures, although improving, have not yet reached the peak levels seen during the pandemic.
Since 2000, the graphics card industry has seen substantial growth, with over 2.3 billion units sold, amounting to $482 billion in revenue. This data point highlights the significant impact that the graphics card market has had on the overall tech industry and emphasizes the importance of continued innovation and competition in this sector.
While the recent increase in graphics card sales is a positive development, AMD’s struggle to gain market share remains a significant challenge. The historical data provided by Jon Peddie Research offers valuable insights into the long-term trends in the GPU market and underscores the need for strategic planning and innovation to stay competitive in the industry.
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