Wednesday, June 20th 2018
Graphics Card Shipments Fall On Weak Mining Demand in 2H18; Prices to Remain Hiked
According to DigiTimes, the entire AIB partner and graphics card supply channel is gearing up to an expected demand decrease for graphics cards in the second half of 2018. This marks an expectation on the continuation of the downward trend since December 2017, a time where Bitcoin (and as such, alternate cryptocurrencies) were at all-time highs. As profits decrease, difficulty increases, and mining players offload their graphics cards to still-interested buyers of their hardware, the market's ability to trade existing graphics cards and absorb new inventory is dwindling. Naturally, this reduced demand means that prices for new graphics cards have also been decreasing and somewhat stabilizing towards pre-mining boom prices.
However, producers of graphics cards obviously don't want to give away their record-high profits in their entirety; and they're showing some reluctance, some "pricing memory" on their graphics cards, maintaining gross margins in the 20% area, double that of pre-mining pricing. As such, graphics card makers are again abandoning the mining boom as a source of stable revenue, looking to other solutions (such as servers, datacenter acceleration and such, DigiTimes reports in the case of TUL). Another thing that would certainly help graphics card manufacturers in keeping up high demand and profits, of course, would be the impending release of a new NVIDIA architecture... At least for those that have AIB status with the company.
Source:
DigiTimes
However, producers of graphics cards obviously don't want to give away their record-high profits in their entirety; and they're showing some reluctance, some "pricing memory" on their graphics cards, maintaining gross margins in the 20% area, double that of pre-mining pricing. As such, graphics card makers are again abandoning the mining boom as a source of stable revenue, looking to other solutions (such as servers, datacenter acceleration and such, DigiTimes reports in the case of TUL). Another thing that would certainly help graphics card manufacturers in keeping up high demand and profits, of course, would be the impending release of a new NVIDIA architecture... At least for those that have AIB status with the company.
67 Comments on Graphics Card Shipments Fall On Weak Mining Demand in 2H18; Prices to Remain Hiked
Simply because GDDR prices pretty much doubled for OEMs. If a GTX 1060 6GB that was sold for 250$ to make the same profit, it would be sold for 270$.
www.amazon.com/EVGA-GeForce-GAMING-Support-06G-P4-6161-KR/dp/B01IPVSGEC/ref=sr_1_1?s=pc&ie=UTF8&qid=1529498917&sr=1-1&keywords=GTX+1060+6GB&refinements=p_n_feature_four_browse-bin%3A6066317011
hothardware.com/reviews/evga-geforce-gtx-1060-gaming-review?page=6
Bother doing research before spewing claims.
For a GTX 1060 6GB,
390$ CAD vs 250$ USD.
250$ USD to CAD == 335$
What the fudge?
EDIT: I have done all the research I need to do on that card. I never plan to buy that card it still falls into being overpriced IMHO, buddy. I don't spewing claims, I give cold hard facts.
I don't get the 'triggered, ultra offended' mode i'm spectating from you now. Chill out.
"Thanks for the tip DJ, according to benchmarks this card is great for gamers. Its silent and cool. I would personally want a higher end model for my own reasons". Extremely hard. I know.
So, where does that leave use today, honestly I see some coordination on all sides... AMD, Nvidia and there AIB's in hoping to keep pricing propped-up by curtailing supply, and sure there's some truth to GDDR supply and prices but that's not all of it! They're all trying to push what had been a "mainstream" parts well above the $300 threshold. Such cards where considered the mainstay at 1080p, but now as 1080p is and has been the baseline for the past years, the whole consortium of gaming hardware (including the monitor companies) are look to bump the price of our next mainstream gamer outlay.
Today looking at the long held trends of price degradation for such "long in the tooth" technology and some adjustment give GDDR supply I'd stipulate prices for such standard/generic built offerings should be at perhaps; $220-230 for a GTX 1060 6Gb, while a RX 580 8Gb at $240-250, such prices might entail rebates.
They can keep that memory longer for all I care. I can continue to get by on my 980Ti for much longer until they align their pricing closer to the market demand.