Workstation market settles into more sustainable growth pattern in Q4’12

12 Mar

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The workstation industry expected more out of fourth quarter market results than it ended up getting.   After encouraging third quarter results that seemed to break the market out of its recent stagnation, it looked like the clouds were beginning to clear, according to data released by JPR. However, rather than basking in a mostly sunny fourth quarter, vendors instead again weathered partly cloudy conditions. All told, workstation vendors shipped about 934 thousand branded workstations, essentially flat from the third quarter’s 932.3 thousand. And considering that Q4 is typically, cyclically stronger than Q3, flat isn’t great.

Still, while numbers on the surface weren’t much to cheer about, a deeper look at the results show a market that appears to be settling into a healthier, sustainable growth pattern. “In the carnage that we saw – in late 2008, all of 2009 and into 2010 – workstation replacement cycles slowed dramatically, as wallets snapped shut,” explained JPR analyst and Workstation Report author Alex Herrera. “In late 2010 and 2011, businesses regained some confidence to spend, and workstation replacements accelerated beyond normal rates to peak in Q3’11, with buyers in effect ‘catching up’ after holding off during the recession.”

Professional graphics market back in the black

The related market for professional graphics hardware had been experiencing similar quarterly results as the workstation market. The professional graphics market slowed each of the four quarters following Q3’11, finally snapping that string of losses with a 7.5% sequential gain last quarter. Leader Nvidia continues to reap the bulk of the market’s rewards, nudging its market share up to 81.7%, with number two AMD at 17.7%.

This growth trend is in line with that reported by SCRI in their 2013-2014 US Broadcast Pro Video Product Reports – Graphics and Effects Workstations.

SCRI has just released a full set of Product Reports with market sizing data, units and dollars, by vertical market, brand shares, average pricing etc.  Click here for table of contents -

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