GPU market slips 34% in fourth quarter 2008

Sales of graphics processors slumped by 34% from Q3 to Q4 of 2008, according to figures from Jon Peddie Research (JPR).

The graphics and multimedia analyst company said that it marked the first time that fourth quarter graphics shipments were down from the third quarter since 2000, and that the market is likely so see the worst conditions since the collapse of the internet bubble.

Total shipments of GPUs was 72.3 million in the fourth quarter, down from 111.2 million in the third quarter of 2008.

“The fourth quarter is usually a positive quarter for the computer industry. There has obviously been some inventory problems in the quarter as sales failed to live up to the optimistic expectations of the third quarter 2008,” said Dr Jon Peddie, president of JPR.

“Vendors were bracing for a slower than usual quarter due to economic factors, but performance this quarter was surprisingly low. Put simply, the market stalled in the fourth quarter. Due to the worldwide financial market meltdown, the US housing market meltdown, layoffs, and media reports, the consumer has hunkered down to wait out the storm. We’re forecasting a strong Q3 and Q4 for 2009 and bracing for what will probably be the worst Q1 and Q2 decline we've seen since the Internet bubble pop of 2000,” Peddie added.

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