The decline of graphics cards, can we buy them cheaper now?

Users have been criticizing the increase in prices of the components necessary to create their own gaming computer for quite some time. A few days ago it was indicated that in recent times they have doubled on average. Jon Peddie Research has released a report that highlights that the sale of graphics cards has suffered a decline of 38% year on year.

There are several reasons why the sale of graphics cards has plummeted. On the one hand, we have the end of the COVID-19 pandemic, a moment when practically all the hardware manufactured was sold. In addition, we have a brutal increase in the prices of graphics cards, making them inaccessible to most users.

The decline of graphics cards, can we buy them cheaper now

Brutal decline in sales of graphics cards

There are a lot of interesting data in the JPR report that let us know how the market is doing. Not only has the distribution of graphics cards fallen , but also that of processors , which falls by 35% . Why is this information given? Simple, a large number of processors integrate a discrete graphics card (dGPU) and of course, it is a fact to take into account.

The report indicates that the global sales computation of graphics cards has fallen by 38%. It is revealed that sales of graphics cards for desktop computers have fallen by 24% and in laptops a brutal 43% have fallen. We are talking about the worst situation in the graphics card market since 2011.

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This report gives more interesting data. It should be noted that AMD has increased its share in the fourth quarter of 2022 by 0.4% . N VIDIA also increases in market share , with a 0.68% improvement. Intel suffers a fall of 1.1%, something that is quite remarkable.

It is highlighted in the report that, in the fourth quarter of 2022, the distribution of graphics cards has fallen by 15.3% compared to the third quarter of 2022. Furthermore, this is broken down. AMD suffers a fall of 12.7% , Intel a fall of 16.5% and NVIDIA a fall of 11.7% , all these data refer to the change between the third and fourth quarters.

In addition, the report indirectly tells us about processors. Specifically, it stands out that, in the fourth quarter of 2022 straight to the third quarter of 2022, sales have fallen by 15.3%. It is the worst processor sales data in the last decade.

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This market needs a fairly deep analysis

We have seen during the pandemic how many computers have been sold during the pandemic. Due to telecommuting, the demand for desktop and laptop computers has skyrocketed. At the same time, production was cut back due to a lack of personnel. This generated a brutal hardware shortage, due to the increase in sales and lack of production.

The situation is now the opposite. Production has increased, returning to normality completely, but demand has fallen. A drop in demand that is increased by the rise in the price of graphics cards. The increase in costs, both manufacturing and transport, are generating a brutal increase in the cost of hardware.

That graphics cards are launched with a surreal consumption does not help too much, to be realistic. But in the end, we are in a very complicated situation where graphics card manufacturers increase revenue at the cost of looting users. We will hardly see a price drop, since they care about their numbers and going up in the stock market, not that you can buy a graphics card to play.