AMD Making Its Move Against Nvidia To Grab GPU Market Share
Nvidia have been dominating the graphics card market for quite a while, but it seems that things are going to change a bit as AMD is making its play against Nvidia.
Recently, Nvidia revealed its flagship GPUs, the GTX 1080 and GTX 1070. The green team gave fans all the information that it could, and it looked like Nvidia would easily beat AMD in terms of performance.
Usually, GPU manufacturers release their flagship graphics cards first to get the attention of consumers, and then release its mid-range GPUs sometime later. But it seems that AMD is planning to do the opposite, which could be risky but if AMD pulls it off then it could mean a lot of profit for the company.
It is true that high-end GPUs carry the largest profit margin, but the mainstream performance segment GPUs, mid-range GPUs, make the majority of the total GPU market. However, doing this will not significantly increase AMD’s market share or solve its profit margin problems.
AMD GPU sales increased by 6.69 percent in Q4 of 2015, which coincides with the release of the R9 380X graphics card. On the other hand, Nvidia’s sales were down 7.56 percent when it released its GTX 950.
Sure, it sounds quite far fetched, but there is an opportunity for AMD to grab almost 7 percent of Nvidia’s sales in a single quarter by releasing a graphic card in the price segment where Nvidia has no graphic card to compete.
Now, Nvidia will be focusing on the high-end GPUs and will not release anything for the mid-range for almost 6 months. But AMD will have its Polaris ready. In fact, when Nvidia releases its mid-range GPUs after six months, AMD would have had more than enough time to drain a bit of the Green Goblin’s market share.
What do you think of AMD’s plan to release its mid-range GPUs first? Share your thoughts in the comments section below.