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
www.investopedia.com/tech/gpu-industry-booming-thanks-blockchain/
Like I said the nail is in the PC coffin for gaming.
www.techpowerup.com/244502/gpu-market-miner-interest-waning-gamer-interest-increasing-jon-peddie-research
And thats WITH a slight increase in desktops after almost a decade of double digit drops in usage.
Even Apple is getting out of the desktop game. These are nothing but Ham Radios.
1) Rumors about a new nVidia card are out, people don't want to buy old stuff at around MSRP
2) Huang doesn't want to drop price on the last gen, cause more monez, sweet monez, love monez
3) Mining craze isn't over yet, actually, just slowed down a bit and AMD cards (superior at mining) still sell well
So, "nvidia's inventory is full" news is what we are actually getting.
Also a 30% drop in growth in the 5 years kinda proves my point. I would say the only thing keeping the GPU market going (dedicated) is the mining market. Consoles take care of whoever has the contract. PC gaming is going buh bye.
2) What's new on that... we've known a GTX 1060 6Gb MSRP for 25% higher price than a RX480 8Gb but faithful jump on the band-wagon anyway.
3) Yes, that's a fairly accurate understand of GPU crypto currency right today.
This might have this TPU article being seen in a different light.
wccftech.com/nvidia-oem-partner-300k-gpu-inventory-issues-next-gen-geforce-delay/
www.digitimes.com/news/a20180619PD205.html
The console gaming public at large doesn't care about gpu pricing and will just be looking for a big visual upgrade when the next gen hits.
NVIDIA might be back to normal but that's because NVIDIA overstocked cards and there's no backlogs of potential buyers. NVIDIA has more cards than they know what to do with now which is why mainstream Volta launch got pushed back.
I always thought that the higher the prices, and the emptier the shelves, the more people bought. I just wish I could think of a way to get rid of all that overstock...