News Intel's share of the discrete GPU market drops to 0% as overall sales increase

[Admin]

Jon Peddie Research: shipments of desktop graphics cards increase in Q2 2024, Nvidia dominates sales.

Intel's share of the discrete GPU market drops to 0% as overall sales increase : Read more

 

[Gururu]

It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.

 

[Pierce2623]

It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.

Yep a GPU that I won’t touch with a ten foot pole at $280, I’d happily try out at $150. The a580 at $100 could take the budget market by storm.

 

[thesyndrome]

It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.

"Pride cometh before the fall"
I'm guessing they didn't want to lose face by selling the GPUs at bargain-bin prices, but considering their current financial difficulties, this seems like a really bad decision.

I'd probably pick up an A770 for $100 just to experiment with it, or to put it into a secondary PC that has a specific purpose outside of playing intensive games (like a media server or something)

 

[jlake3]

"Pride cometh before the fall"
I'm guessing they didn't want to lose face by selling the GPUs at bargain-bin prices, but considering their current financial difficulties, this seems like a really bad decision.

I'd probably pick up an A770 for $100 just to experiment with it, or to put it into a secondary PC that has a specific purpose outside of playing intensive games (like a media server or something)

It would be a bad look to fire-sale the cards to that degree… and might actually cost them even more money? If there’s an official price change, they might owe AIBs and distributors a rebate on inventory in the channel. And it would make anyone still buying your cards mad that if they waited just a bit longer it would have been massively cheaper.

If the contracts are written in a way where they don’t have to issue a rebate, then everyone is gonna try to cost average existing inventory with new inventory… but sales are poor and Alchemist is rapidly headed towards discontinuation, so discounts on future restocks aren’t a good incentive. And trying to stick partners with your mistakes is gonna burn the few bridges you barely built. There’s already rumors that one AIB is not coming back for Battlemage.

Letting what little is left in the system drip through with a smallish promo might be seen as preferable to a big cash hit all at once that also torches your brand image.

 

[vanadiel007]

Never understood why they wanted to compete in that market segment. They should have competed in the mobile GPU market.

 

[Giroro]

It looks like sales of this generation overall are poor.

If Intel cared about making moves to gain market share, they would have gotten Battlemage on store shelves by now. AMD's has the same problem with their strategy of always waiting for Nvidia to move first and copying their price/perf. You can't become a leader by being a follower.

 

[Giroro]

Never understood why they wanted to compete in that market segment. They should have competed in the mobile GPU market.

Because you can sell a GPU for the price of an entire laptop. The potential profit margins are a lot higher.

 

[Eximo]

They certainly did. Not too many discrete Arc mobile chips made it into desirable products.

And they have switched over to Xe cores for graphics in general on the SoCs.

Hard to sell laptop GPUs if you have no reputation. It would have been a different story if they had managed to deliver on time during the GPU shortages. A750 would have been a big hit if they hadn't delayed.

 

[Notton]

It is because they are still way too expensive. Intel should have just dropped them to like $50 dollars to clear inventory and get the name out. Heck I would buy a 770 for even $100.

The ARC cards were priced with almost no margin for Intel. If they sold them at cost, they would be canned by investors and you wouldn't even see Battlemage.

If Intel drops out, Nvidia would have zero incentive to offer an RTX4060Ti 16GB for $200, which is what you really want.

 

[thestryker]

These figures are referring to shipments not sales which just means Intel isn't moving any new cards out. It makes sense that they're probably not manufacturing Alchemist GPUs still.

 

[Eximo]

If Intel drops out, Nvidia would have zero incentive to offer an RTX4060Ti 16GB for $200, which is what you really want.

They don't have much incentive now either. Hasn't been a 60 class card for less than $300, unless you count the 1060 3GB, since 2013 with the GTX 760.

AMD isn't helping in that regard with the 7600XT sitting at $300+.

$300 for the former would be huge improvement.

 

[renz496]

Never understood why they wanted to compete in that market segment. They should have competed in the mobile GPU market.

to prevent nvidia from become more than just a gaming company. the effort actually start sometime in 2017.

 

[renz496]

Because you can sell a GPU for the price of an entire laptop. The potential profit margins are a lot higher.

AFAIK intel was not in the market for that kind of profit. that kind of product only relevant if your company name is nvidia. even AMD as the second largest and second best GPU company in the world can't really touch that market.

 

[hannibal]

Ah! NVIDIA GPUs are too cheap and that is why they sell so well!
Well hopefully nvidia will increase prices for the next gen!

 

[hannibal]

It looks like sales of this generation overall are poor.

If Intel cared about making moves to gain market share, they would have gotten Battlemage on store shelves by now. AMD's has the same problem with their strategy of always waiting for Nvidia to move first and copying their price/perf. You can't become a leader by being a follower.

The problem is… NVIDIA can win any price war! They make more gpus than any other, so they can make more money by each gpu aka have the fattest profit!
If AMD make gpus first and put price too low… nvidia would just also put price lower abou $100 more than competition AMD gpu. Because AMD knows this they owerprice GPU as much as possible. Wait what NVIDIA do and after that price the product so close NVIDIA that they don`t get nvidia Angry enough to drop their prices. This way AMD get better profit than just pushing the price down by themselves. NVIDIA is practically monopoly and dictates the price strukture.

 

[Eximo]

The problem is… NVIDIA can win any price war! They make more gpus than any other, so they can make more money by each gpu aka have the fattest profit!
If AMD make gpus first and put price too low… nvidia would just also put price lower abou $100 more than competition AMD gpu. Because AMD knows this they owerprice GPU as much as possible. Wait what NVIDIA do and after that price the product so close NVIDIA that they don`t get nvidia Angry enough to drop their prices. This way AMD get better profit than just pushing the price down by themselves. NVIDIA is practically monopoly and dictates the price strukture.

Except none of them make the GPUs. Right now everyone is using TSMC for advanced chips and the AI boom is going to eat into things. My short term prediction is that we won't see GPUs on new nodes for a while, just refinements of what we already have.

They can certainly negotiate with a pretty big stick if they choose, I agree. Though Apple tends to take the top slot on the most advanced nodes. AMD has Sony and Microsoft to back them for console chip production.

Intel could eventually start fabbing their own GPUs. AMD is in the same position as Nvidia, they could opt to switch to Intel if that becomes price acceptable or over to Samsung if that makes sense. I very much doubt GF will ever be in the running again. Until all those fabs being built are at capacity, things are certainly going to be interesting on the gaming GPU front.

 

[DS426]

Intel A700 series are large chips; Intel is already on tight margins. Sure, it's easy to say "let them go at loss and get some market share", but is Intel really in a position to do that right now?? No is your answer.

As for the overall market health of PC gaming GPU's, this is utterly ridiculous. Folks, I've been in the Reddits and elsewhere on social media, and seriously, the justification for AMD Radeon hate is asinine. Yes, most can agree that FSR and Ray Tracing and drivers haven't kept pace with nVidia's dominance, but sometimes it takes investing in the underdog (not really like AMD is on CPU's anymore BTW, lol) for the sake of betterment of the tech and gaming community. I'm probably going to get reamed for this, but second best is ok, like really, we make all of these first-world problems into big deals and ultimately screw ourselves in the long run. Also realize that in today's world, devs spend most of their time optimizing for one platform, which inevitable results in the status quo marching hard to the dream beat.

Bottomline: PC gaming sucks today. It just does. Either go green or make all kinds of sacrifies. Blame it on AMD all day long and a lot of that is justified, but I'm getting the sense more and more all the time that PC gaming is like a digital form of national supremacy. News flash for us tech junkies: there's more to life than the technical winners.

 

[thestryker]

I'm probably going to get reamed for this, but second best is ok, like really, we make all of these first-world problems into big deals and ultimately screw ourselves in the long run.

I agree with this with the asterisk of: if the price is right. I don't think it makes sense as a customer to take the inferior product in hopes that it will help the billion+ dollar company keep playing in that market if the pricing is the same. When I got my 3080 12GB it was the same price as a 6800 XT so it made no sense to go with AMD. When I decided I needed a new backup card because my second machine had a 1660 Ti I got a 6800 XT because it made the most sense of anything on the market at the time. I do certainly think too many people arbitrarily dismiss AMD and now Intel because they're not nvidia though.

 

[vanadiel007]

Because you can sell a GPU for the price of an entire laptop. The potential profit margins are a lot higher.

Looks like it worked out great...