Graphics card sales rose, revenue dropped in Q3

Last month, Jon Peddie Reserach published figures showing the market for graphics processors (including integrated graphics chips) had seen comfortable growth in the third quarter. The research firm has now put out another round of numbers, this time concerning the market for discrete graphics cards—so-called "add-in boards."

According to JPR, that market "held up reasonably well" in the third quarter. Shipments rose 10.8% from the second quarter, slightly below the 17.8% growth the whole GPU market reportedly saw over the same time period. On the flip side, graphics card shipments dropped 15.2% on a year-over-year basis despite overall GPU market growth of 22.5%.

The quarterly gains didn't translate into higher revenue, either: average selling prices dipped 27% to $3.8 billion between Q3 '07 and Q3 '08, a change JPR attributes to "a more competitive AMD intensifying the pressure on . . . Nvidia." That makes sense, since AMD priced its Radeon HD 4000 cards pretty aggressively and led Nvidia to slash prices on its GeForce GTX 200 line this summer. JPR says the Radeon HD 4000 line had 40% of the market in Q3, up five points from 35% in Q2.

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