The number of graphics cards sold reached its lowest point since 2005, according to the latest stats from Jon Peddie Research.
Intel, AMD, and Nvidia shipped only under 6.9 million discrete desktop graphics cards in the third quarter of 2022.
The demand for graphics cards significantly increased during 2020 and 2021, but it took a nosedive a year after due to various factors.
What were the causes of the desktop GPU sales drop?
Photo Credit: www.pcgamer.com
We must remember that we noticed a sharp decline in GPU sales because they drastically grew in the past two years.
Thus, understanding that earlier trend will help you figure out why graphics cards dropped in demand.
The years 2020 and 2021 marked the period of lockdowns. People had to find ways to continue their daily lives while remaining indoors.
They found ways to work and study from home, kickstarting the new standard of remote work and online learning worldwide.
Moreover, people looked into cryptocurrencies and other blockchain technologies because they had more time at home.
They discovered that mining cryptos could be a potentially lucrative investment. Their PCs could help validate bitcoin transactions to earn more BTC.
Some turned to spot trading and derivatives, as numerous apps made it easier. All these activities required more powerful graphics cards to deliver better performance.
As a result, more people bought GPUs, resulting in higher sales for Nvidia, Intel, and AMD. Unfortunately, a historic desktop GPU sales drop came in 2022.
It was when most countries removed their COVID restrictions, allowing people to resume regular outdoor activities.
Consequently, more people spend less time in front of their computers. Moreover, the ongoing global economic slowdown is causing rampant inflation.
People are less inclined to purchase expensive products like graphics cards because they prioritize spending on essentials.
Also, the economic downturn discourages people from investing in volatile assets like cryptocurrencies.
As a result, cryptocurrency prices significantly declined, so mining these digital assets became less lucrative than ever.
All these factors led Nvidia’s market share to drop from 18% to 16%. Meanwhile, AMD was the worst hit, with its 20% share falling to 12% in Q3 2022.
Conclusion
The recent desktop GPU sales drop has not been all bad for everyone. For example, Intel gained market share from 62% to 72% as its other competitors declined.
Also, that might be your cue to buy the latest graphics cards at lower prices. You can start the new year by building a gaming PC!
You may click here to learn what you should look for in a gaming PC. Follow Inquirer Tech to keep up with the latest digital trends.