The beginning of 2024 has marked a period of decreased CPU and GPU shipments, with the market experiencing seasonal downturns. Analysis provided by Jon Peddie Research indicates that the first quarter of the new year has been somewhat mixed for the PC hardware industry, with both CPU and GPU shipments showing varying performances.
Divergent Trends: Yearly Gains and Quarterly Losses
Jon Peddie Research’s Q1 2024 report on the PC market paints a picture of growth on a yearly basis paired with declines relative to the end of the previous year. The GPU segment of the PC market achieved shipments of 70 million units, demonstrating a substantial growth powered by both integrated and discrete solutions. Meanwhile, PC CPU shipments saw a 33% increase year-over-year, pointing to a steadily growing demand in this product category.
However, when comparing Q1 2024 to the previous quarter, both CPU and GPU shipments exhibited a downturn. Overall, shipments in the PC GPU market declined by 9.9%. A closer look at individual vendors reveals that NVIDIA, Intel, and AMD experienced shipment reductions of 7.7%, 9.6%, and 13.6% respectively in the graphics segment.
Shifting Market Shares Amongst Tough Competition
These shifts in shipment statistics led to alterations in the market share landscape. AMD experienced a decrease in its market share by 0.7%, while both Intel and NVIDIA capitalized on this, increasing their respective market shares by 0.3% and 0.4%. While these movements in market presence may not be drastic, they suggest a challenging period for AMD, given the negative trends expected to continue throughout most of 2024.
Additional Report Insights
In the broader market context, the GPU attach rate, which is indicative of the prevalence of GPUs in PCs, was reported at 113%. This figure showed a slight decrease of 0.6% from the previous quarter. Desktop graphics add-in boards (AIBs), using discrete GPUs, also saw a significant drop of 14.8% compared to the previous quarter.
The PC CPU sector didn’t escape the downward trend, shrinking by 9.4% quarter over quarter, despite a robust year-over-year increase. Within the CPU market, notebook CPUs made up the lion’s share of shipments at 73%, leaving desktop CPUs with the remaining 27%. This split can be potentially attributed to the culmination of a consumer upgrade cycle that typically peaks in the latter half of the year.
Future Outlook: Innovations and New Product Introductions
As we move through 2024, trends such as AI in PCs are gathering momentum, with major chipmakers and OEMs slated to bring forth a slate of innovative products and announcements. Both the demand and shipments for CPUs are expected to gain new traction in the desktop arena, as AMD and Intel gear up to release their latest chip offerings.
Furthermore, the discrete graphics segment, which is currently below the 10-year average after a 12.4% drop from the previous quarter, is anticipated to revive. With NVIDIA and AMD hinting at new graphics architectures for client PC platforms in the latter half of 2024, there’s potential for revitalized interest and activity in this market.
As consumer behaviors and technological advancements continue to evolve, so too will the composition and competitive dynamics of the CPU and GPU markets. With updates on the horizon, consumers and industry observers alike eagerly await the next wave of innovation and the impact it will have on PCs worldwide.
