14 DAY TRIAL // During the second quarter of 2015 has seen desktop graphics cards sales drop to a whopping 9.4 million units, prompting analysts to consider the worst quarter for GPU sales in the last ten years.
It's no secret that the current financial crisis that is hitting China is affecting the IT industry in the first place, but signals from the Chinese society indicated that an increasing standard of life prompted the Chinese to invest in more expensive products while the cheaper ones with lots of alternatives are being sidelined succumbing to major losses in sales.
NVIDIA arose as the premium choice for many Chinese customers and became the manufacturer of choice for top tier graphics cards. Unfortunately, the sharp drop in PC sales and the Chinese IT industry in general affected NVIDIA's sales as well. AMD isn't placed too far away but since it already suffered from weak sales in Europe and Asia, the new drop in sales for desktop graphics cards would mean an even sharper drop for the Red Team.
An economy slowing down affects PCs and desktop GPUs directly
According to Jon Peddie Research market share for both companies suffered heavy losses in sales where sales for both graphics cards manufacturers dropped by 16.81 per cent compared to the previous quarter, together with the general PC drop in sales of 14.77 per cent. The hardest hit of them all is again AMD who decreased to a new minimum of sales in more than 10 years, with a market share that decreased to 18 per cent in Q2 2015, being the lowest in AMD's history.
NVIDIA, on the other hand, has a serious growth of its integrated graphics solutions, becoming a market leader with 81 percent of embedded graphics market share. In other words, while the PC sales are plummeting worldwide and especially China, the mobile market on tablets, mini PCs and other small factor computing are pushing forward NVIDIA as the brand most preferred among discrete graphics solutions.