In the first quarter of 2021, the global GPU market witnessed a steep decline in shipments in China, the largest market for GPUs.
In the past few years, China has become the dominant market for GPUs, with the highest number of products being produced and used within the country.
But now as per reported by Jon Peddie Research, a market research firm, GPU shipments in China have decreased by 42%, which is anticipated to have a ripple effect on the industry.
The drop in GPU shipments in China is attributed to several factors, including the ongoing trade tensions between China and the United States, which have impacted the prices of computer components.
The tariffs imposed by both countries have resulted in increased costs for GPUs, making them more expensive for consumers and businesses alike. Moreover, the pandemic has also played a role in the decline of GPU shipments.
The global supply chain disruptions and production shutdowns caused by the pandemic have led to delays and shortages of computer hardware components, which has impacted the availability of GPUs in the market.
Furthermore, China has faced several tech-specific bans that adversely affect the GPU market. Adding to these challenges is the recent Chinese New Year’s holiday; as a result of these factors, the demand for GPUs in China has decreased significantly, leading to a decline in shipments. This has affected major GPU manufacturers such as NVIDIA, AMD, and Intel, which all saw reduced loads in China in the first quarter of 2021.
NVIDIA, AMD, and Intel all saw a decline in their shipments in China. According to the data compiled by Jon Peddie Research, NVIDIA saw a drop of 60% in GPU shipments, while AMD and Intel saw 45% and 28%, respectively.
Board Channels, a Chinese blog and community has published statistics indicating a 42% decline in GPU shipments in China compared to the previous year. The data presented in the blog is visually represented through a chart, where the green bars denote GPU shipments in December 2022, and the orange bars represent January 2023. Colorful emerged as the top-selling AIB brand in China, followed by Asus, Gigabyte, MSI, Galax, Gengsheng, Maxsun, and Zotac.
Despite the decline in GPU shipments in China, there are some signs of hope for the industry. Companies such as Colorful, a Chinese GPU manufacturer, have seen success in the Chinese market, which could help to revive the industry.
However, it remains to be seen whether this success is sustainable and will be enough to offset the overall decline in GPU shipments.
The Colorful in China has given it a significant share of the Chinese GPU market. This market share is likely the reason why the company was able to perform better than its competitors.
Major GPU manufacturers in the market, including the “big three” – Gigabyte, MSI, and ASUS – and other significant brands, encountered a drop in their shipment volumes compared to the previous year.
Although GALAX and Maxsun witnessed an increase in their shipment volumes, their combined total still needed to be a quarter of the total shipment volume of Colorful. As a top Chinese GPU manufacturer, it’s shipment volumes remained robust while its competitors struggled to keep up with its market success.
Finally, the numbers from Gainward and ZOTAC showed a slight drop in GPU shipments, indicating they were also working in the market. The Colorful’s success in the Chinese market can explain why it outperformed its competitors and made a profit when other major brands, such as ASUS, Gigabyte, MSI, Gainward, and ZOTAC, did not.
The other major brands in the market are struggling, likely due to their inability to compete with Colorful’s dominance in the Chinese market.
Due to several key factors, colorful has achieved significant success in the Chinese market. One of these factors is the company’s ability to offer competitive pricing for its products, making its GPUs more accessible to a broader range of consumers.
Colorful has created innovative products that meet the specific needs of the Chinese market, such as gaming-oriented GPUs.
Another factor contributing to company’s success is its localized marketing strategies. The company has been able to tailor its marketing efforts to the specific preferences and demands of Chinese consumers, which has helped it to build a loyal customer base in the country. For example, the company has focused on marketing its products to Chinese gamers, who are known to be a significant and enthusiastic market segment.
In addition to these factors, Colorful has also established strong partnerships with local retailers and distributors, which has helped it expand its reach across the Chinese market. By working closely with these partners, also ensured that its products are widely available and its brand is well-recognized throughout the country.
They also focused on expanding its product line to cater to a broader range of customers, including gamers, content creators, and professionals. Due to its capacity to meet the specific requirements of the Chinese market, Colorful has established itself as a significant player in the Chinese market.