Intel's Latest Processors Drop Sales of Discrete GPUs Dramatically - Analysts

Sandy Bridge Brings Sales of Discrete GPUs Severely Down in China - Analysts

by Anton Shilov
06/09/2011 | 09:41 AM

While Intel Corp.'s integrated graphics cores have never been able to compete successfully against integrated or discrete solutions designed by ATI/AMD or Nvidia Corp., the latest Core i-series "Sandy Bridge" processors with built-in graphics have managed to dramatically affect sales of standalone graphics processing units (GPUs) in China.

 

“GPU sales unit declines in May are reported at -40% to -45% month-on-month versus expectations for -10% to -15%  month-on-month. The low-end of Nvidia’s GPUs are hurt by Intel’s integrated graphics capability accompanying its “Sandy Bridge” microprocessor systems. Channel inventory in China may be four weeks now for Nvidia GPUs, versus an expected two to three weeks," wrote Michael McConnell, an analyst with Pacific Crest, in a note to clients, reports Tech Trader Daily.

It is unclear whether similar trends affect sales of discrete graphics solutions from AMD or Nvidia in other regions, but in generally the situation seems to be pretty alarming for standalone graphics adapters. It is not a secret that once AMD launches its A-series accelerated processing units that provide graphics performance akin to discrete GPUs, sales of the latter will again be hit.

The analyst estimates that China accounts for 35% of Nvidia's sales and 30% of those sales are desktop discrete GPUs. The numbers cannot be verified using the company's official filings, therefore, it is hard to make any predictions about the company's financial results.

Nvidia did not comment on the news-story.