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
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67 Comments on Graphics Card Shipments Fall On Weak Mining Demand in 2H18; Prices to Remain Hiked

#51
Th3pwn3r
Nephilim666For the first time in a long time we might see consoles truly leapfrog PC since development in PC gaming GPUs has stagnated since 2016.

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.
The only way that's going to happen is if the price takes a big leap as well.

And...development in GPU stagnated? That's some news to me...lol.
Posted on Reply
#52
Casecutter
What's alarming is Nvidia (is said/if true) is now be inundated/flushed with silicon and they're keeping a stiff upper lip and unrelenting on prices. Honestly, they don't need to as regrettable AMD isn't in a place to compete, Nvidia knows they can hold out releasing Next-gen GeForce parts as yes AMD has no teeth/threat... so Nvidia just stays Calm and Carries On. They're hoping gamers don't catch on and abide by thinking such pricing is correct or acceptable. Gamer should not relent and resist this is not the way supply and demand is suppose to work!

Nvidia and there AIB are in no-way not going to jeopardize their already inflated MSRP (pointed out in my #23 post) when Nvidia, their AIB's and retailers don't panic they all can keep gamers thinking a "smurf" PCB single fan GTX 1060 with only 6Gb has any merit commanding $250 just because it has GAMING in the title.

Worse yet the truly "Gelded" silicon that Nvidia miss-represents as the GTX 1060 3Gb; best price is $215 working a $20 Rebate for Gigabyte Windforce, a fairly generic offering. Here's a card that is stupidly over-priced, and honestly was still expensive when it was often found for $180, even as mining took off in the middle of Q1 2017.

If Nvidia can maintain selling "long in tooth technology" at great profit, while holding off with the investment of all the new advertising, AIB's making new cooler shrouds, print box's, etc and retailers keep stock move... They are "All" more than willing to perpetuate an "altered reality" if gamers just at like sheep.
Posted on Reply
#53
TheMailMan78
Big Member
CasecutterWhat's alarming is Nvidia (is said/if true) is now be inundated/flushed with silicon and they're keeping a stiff upper lip and unrelenting on prices. Honestly, they don't need to as regrettable AMD isn't in a place to compete, Nvidia knows they can hold out releasing Next-gen GeForce parts as yes AMD has no teeth/threat... so Nvidia just stays Calm and Carries On. They're hoping gamers don't catch on and abide by thinking such pricing is correct or acceptable. Gamer should not relent and resist this is not the way supply and demand is suppose to work!

Nvidia and there AIB are in no-way not going to jeopardize their already inflated MSRP (pointed out in my #23 post) when Nvidia, their AIB's and retailers don't panic they all can keep gamers thinking a "smurf" PCB single fan GTX 1060 with only 6Gb has any merit commanding $250 just because it has GAMING in the title.

Worse yet the truly "Gelded" silicon that Nvidia miss-represents as the GTX 1060 3Gb; best price is $215 working a $20 Rebate for Gigabyte Windforce, a fairly generic offering. Here's a card that is stupidly over-priced, and honestly was still expensive when it was often found for $180, even as mining took off in the middle of Q1 2017.

If Nvidia came maintain selling "long in tooth technology" at great profit, while holding off with the investment of all the new advertising, AIB's making new cooler shrouds, print box's, and retailers keep stock move... They are "All" more than willing to perpetuate an "altered reality" if gamers just at like sheep.
Dude if people are paying the price wouldn't you?
Posted on Reply
#54
Casecutter
TheMailMan78Dude if people are paying the price wouldn't you?
Is that sarcasm?
If others are jumping off the cliff... would you? That almost cult'ish talk... don't drink the Kool-Aid.

Knowing what was insinuated yesterday (being flushed a silicon) a 3Gb is wroth $160 straight up; no rebate, while a decent dual fan 6Gb is more like $220-230 in my mind perhaps after working a $10-20 Rebate.

And don't worry even at those prices I'd bet there "meat on bone" for everyone. Remember AMD was in this position the last time and they had to "fire-sale" Tahiti 280's for <$150 and 280X for like $170 and AMD hung one. Regrettably Nvidia can entrench and wait it out, seeing and saying nothing on the horizon. It's to bad AMD didn't have a re-spin of Polaris on 12nm, it could have at minimum induced a little heat under Nvidia.
Posted on Reply
#55
TheMailMan78
Big Member
CasecutterIs that sarcasm?
If others are jumping off the cliff... would you? That almost cult'ish talk... don't drink the Kool-Aid.

Knowing what was insinuated yesterday (being flushed a silicon) a 3Gb is wroth $160 straight up; no rebate, while a decent dual fan 6Gb is more like $220-230 in my mind perhaps after working a $10-20 Rebate.

And don't worry even at those prices I'd bet there "meat on bone" for everyone. Remember AMD was in this position the last time and they had to "fire-sale" Tahiti 280's for <$150 and 280X for like $170 and AMD hung one. Regrettably Nvidia can entrench and wait it out, seeing and saying nothing on the horizon. It's to bad AMD didn't have a re-spin of Polaris on 12nm, it could have at minimum induced a little heat under Nvidia.
Dead serious. I would sit on supply if I controlled the market AND could charge whatever I wanted. 1. It will buy more RD time. 2. I could flush the market in a second and not lose a dime in holding supply. You would have to be a complete idiot to flood the market you control with cheap goods.
Posted on Reply
#56
Casecutter
TheMailMan78Dead serious
Oh, no argument here that's exactly their position. Gamers just need to be informed and decide if they're okay with Nvidia being in that position and feel okay in feeding them excessive profit even thought they stepped in sh!#.

Gamers should understand they've freedom of choice.
Posted on Reply
#57
TheMailMan78
Big Member
CasecutterOh, no argument here that's exactly their position. Gamers just need to be informed and decide if they're okay with Nvidia being in that position and feel okay in feeding them excessive profit even thought they stepped in sh!#.

Gamers should understand they've freedom of choice.
Is this the same crowd that buys Call of Duty every year? We are talking about the same crowd right? lol
Posted on Reply
#58
stimpy88
R-T-BUh... name one example? I'm having a hard time ascertaining if this is sarcasm or not. Most cards are still above MSRP, and that is not normal.
Don't forget that these cards are 2 years old, and still selling higher than MSRP. Ancient tech in GPU market terms.

Just another sign of GPU design stagnation.
Posted on Reply
#59
lexluthermiester
dj-electricCurrently, even if they want - AIBs can't return to lowest prices without making much less to non profit.
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$.
Rubbish, Newegg, Amazon and eBay prices on new cards are back down to pre-hike prices. A 1060 6GB can be had at all three for $249.
Posted on Reply
#60
dj-electric
lexluthermiesterRubbish, Newegg, Amazon and eBay prices on new cards are back down to pre-hike prices. A 1060 6GB can be had at all three for $249.
A model. A simple one. For a limited amount of time. Some models came back up.

/unrubbish
Posted on Reply
#61
medi01
lexluthermiesterRubbish, Newegg, Amazon and eBay prices on new cards are back down to pre-hike prices. A 1060 6GB can be had at all three for $249.
I still see 570 being sold for 250+ Euros.
Posted on Reply
#62
Casecutter
lexluthermiesterRubbish, Newegg, Amazon and eBay prices on new cards are back down to pre-hike prices. A 1060 6GB can be had at all three for $249
Rubbish! Right today at Newegg it is $310... which is WAY off the lowest price I find which was $220 in April 2017 at Newegg. Although I should probably add the caveat; that such a price in all probability worked a rebate, which normally is $30 for EVGA on such a card.

We're not at or even close to what prices should be in the historical norm of graphical accelerators given the breath they've maintained in the market place. Even if we "factor" in the issues with GDDR memory these prices are still wack!
medi01I still see 570 being sold for 250+ Euros.
Exactly based on where the market would customarily drop after this length in market a RX 570 4Gb would be at €129 / $150 no problem. They were almost there pre-mining, before they became the 'Bell of the Ball' for their Hash/$ for the entry crypto-miner snatched them up, and why they're still crazy pricing.
Posted on Reply
#63
eidairaman1
The Exiled Airman
lexluthermiesterRubbish, Newegg, Amazon and eBay prices on new cards are back down to pre-hike prices. A 1060 6GB can be had at all three for $249.
Go figure low end cards...
Posted on Reply
#64
lexluthermiester
dj-electricA model. A simple one. For a limited amount of time. Some models came back up.
/unrubbish
No, still rubbish. Several models. Amazon even had seveal 1060 6gb on sale for $229 last weekend. Now most are back up to $249. The 1070's are also at decent prices again as are the Vega 56 and 64's. If you don't believe me go look for yourself.
eidairaman1Go figure low end cards...
See above. Just ordered a few of them for client PC's.
Posted on Reply
#65
dj-electric
lexluthermiesterNo, still rubbish. Several models.
One model, the simplest
www.amazon.com/s/ref=sr_nr_p_n_feature_four_bro_2?fst=as:off&rh=n:172282,n:541966,n:193870011,n:284822,k:GTX+1060+6GB,p_n_feature_four_browse-bin:6066317011&sort=price-asc-rank&keywords=GTX+1060+6GB&ie=UTF8&qid=1529705739&rnid=2057431011

One 270$ model, the rest are way up there. I'd like to be transported in to your universe, where several models cost 250$.

Newegg isn't different.
www.newegg.com/Product/ProductList.aspx?Submit=ENE&N=-1&IsNodeId=1&Description=GTX%201060%206GB&bop=And&Order=PRICE&PageSize=96
Posted on Reply
#66
cyneater
It still would cost me more for a 1060 6Gb in Australia than a few months after there release....

And like many I won't update till the prices come down....

Also AMD need to get the crap in order other wise Nvidia are going to pull and intel and release tech so slowly and keep the prices high.
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