The report reveals volume dropped but revenue shot up thanks to a 25% sequential increase of average sales prices (ASP) to around $182 per card. The industry shipped 19.8 million graphics cards in Q2 2008 - a drop of around 19 percent sequentially. Revenue was $3.6 billion, roughly flat from Q1 2008.
While the quarter’s behavior wasn’t exactly typical, it didn’t particularly surprise either, especially when taking into account recent industry events and the cyclical nature of the business. Rather than assess Q2’08’s price levels as uncharacteristically strong, JPR instead credits unusually low ASPs in Q4’07 and Q1’08 for making Q2’08’s results look good. The market in preceding quarters had seen significant price cuts for older products, in anticipation of the summer releases of major new generations of graphics technology from both Nvidia and AMD, the GeForce GTX 200 and ATI Radeon HD 4800 series.