nVidia’s IGP and GPU sales dropped significantly in Q4 2008, however, we’re surprised to hear a 47% drop in workstation market sales too.
This decline in overall workstation market share is suspected to be caused by ATI winning deals with HP and Dell.
The shocking news is that Marvin Burkett has lost assurance in the company recovering in Q1 – not what investors would like to hear. In the long run, this will decrease profits and average selling price as workstation chips are a large part of the businesses income.
It’s not just workstations which have declined in sales though, the figures for the companies’ graphics sales show a 50% drop compared with Q3 2008. Not good…
It seems the ‘credit crunch’ really has hit the IT industry hard. IT companies just aren’t spending money on super expensive hardware anymore and instead are postponing the decision for a better financial climate.