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
And...development in GPU stagnated? That's some news to me...lol.
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.
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.
Gamers should understand they've freedom of choice.
Just another sign of GPU design stagnation.
/unrubbish
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! 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.
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
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.