GPU Makers Expected To See Slow Start To 2009

It's tough out there for just about everyone these days, but AMD, NVIDIA and Intel could be facing some rather huge hurdles in particular. According to a detailed excerpt from a newly released Jon Peddie Research study, the graphics market in Q1 and Q2 of 2009 are forecast to be especially slow. In fact, it's noted that those two quarters will "probably [showcase] the worst Q1 and Q2 decline we've seen since the Internet bubble burst of 2000."

This grim outlook comes hot on the heels of a somewhat surprisingly weak fourth quarter of 2008 -- a quarter that is traditionally hot with holiday sales of new machines and standalone GPUs. Specifically, shipments of chips that power graphics in PCs, medical systems, point-of-sale terminals, kiosks and digital signs fell by 28 percent in the quarter to 72.35 million units, compared with 100.5 million units during the same period a year ago. When compared to Q3 2008, shipments slipped a staggering 35 percent, which was said to be the "first quarter-to-quarter drop in the fourth quarter in eight years."

When looking specifically at GPU vendors, we see VIA suffering the most with a nearly 72 percent year-to-year drop, while Intel shipments sagged by around 21 percent. AMD saw its own shipments decline 24 percent, while NVIDIA, Matrox and SiS saw decreases of 34 percent, 46 percent and 61 percent, respectively. Not surprisingly, the 40 percent drop in desktop PC shipments was largely to blame, and the general economic climate likely forced to-be GPU buyers to deal with their current frame rates a few months longer.

The silver lining to all of this is that the research does expect Q3 and Q4 2009 to be "strong," but they'll have to
3vi1 5 years ago

Why is it that Dr. Jon Peddie is supposed to be some kind of graphics guru, yet every study I ever see quoted from his company is obvious or hindsight? Is this why their self-serving Wikipedia page ( was removed yesterday?

Seriously: The economy is in the crapper; anyone could make these statements and throw in numbers from the quarterly results. Why do people pay $3,500 a year to hear what they already know?

3vi1 5 years ago

My (end rant) tag must have looked too much like HTML and was discarded.

amdcrankitup 5 years ago

Maybe they,ll lower the prices so I can afford to buy one then that will up there sales by 1!!!Woo hoo

peti1212 5 years ago

There are actually many people that are hoping for that so if they would do that they would get a lot more profit in. I know many friends at school that are not buying new video cards because of the price. I bet there are thousands of people out there that think the same.

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