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Forecast: GPU sales to rebound in Q3

Posted: 30 Apr 2009 ?? ?Print Version ?Bookmark and Share

Keywords:PC market? graphics chip? GPU sales?

Jon Peddie Research reported that shipments of graphics chips dropped to 74.9 million in Q1 09, down 21.1 percent from the corresponding quarter of 2008.

The graphics and multimedia chip market watcher, however, stated that there was a rebound in Q1, with Intel Corp. and Nvidia Corp. in particular benefitting.

Year-on-year numbers from the researchers indicate Advanced Micro Devices Inc. was down 27.5 percent, Intel 8.2 percent lower, and Nvidia down 25 percent. The biggest surprise was the huge 78.6 percent fall at via/S3.

The company predicted an upturn in the PC market for the third and fourth quarter of the year, but as for the total graphics chip business, "things probably are not going to get back to the normal seasonality till Q3 this year, and we won't hit the levels of 2008 until 2010."

In its analysis, Jon Peddie Research said that in 2H 08, the channel stopped ordering GPUs and depleted inventories in anticipation of a long period of global recession.

But because people kept buying systems, by Q1 09 stock was exhausted and manufacturers had to start buying again, ending an eight-year tradition of sales dropping between Q4 and Q1, with shipments actually increasing for the first time in years. And the big winners from this were Intel and Nvidia, the researchers said.

Figures indicate Q4 08 to Q1 09 volume shipments increased from 72.5 million units to 74.9 million. For the quarter, Intel had a 49.7 percent share of the business, Nvidia 31.1 percent and took a 17.1 percent share.

The researchers said the cleaning out of old inventory in the electronics, automotive, and real-estate markets should be complete by the end of the summer, and that "some great deals will be available for those happy with 2008 technology."

- John Walko
EE Times Europe

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