Overall graphics cards shipments dropped by 13 per cent in Q1 2015, according to Jon Peddie Research.
AMD shipments fell by 17 per cent, Nvidia saw a 13.5 per cent decline and Intel's shipments dipped by 12 per cent.
According to Jon Peddie Research, the first quarter tends to be flat each year. But, this year shipments were below the ten-year average of minus 3.6 per cent.
However, gaming GPUs were steady in Q1 as Nvidia's Maxwell-based AIBs continued to sell well, while the company also boosted its market share in the desktop sector.
Chip maker Intel saw its overall PC graphics shipments decrease by 12 per cent from last quarter, while AMD shipments of desktop GPUs and CPUs decreaed by 22.6 per cent from the previous quarter.
The research revealed that the overall PC market decreased by 6.7 per cent year-on-year. Desktop graphics add-in boards (AIBs) that use discrete GPUs decreased by 8.8 per cent from last quarter - less than the PC market.
The research stated that GPUs and chips with graphics are a leading factor for the PC market, with at least one or two present in every PC shipped.