Thursday, June 28th 2018
Gigabyte Expects Its Graphics Card Shipments to Fall by 20% in 2Q18
As the mining craze seems to have hit a steaming wall alongside the current contraction in the crypto market (which has almost all cryptocurrencies redlining), Gigabyte is revising its graphics card shipment expectations for 2Q18. This isn't a sudden move, mind you: the "cryptocurrency mining accelerator market" has been slowing its ludicrous demand for some time now. However, Gigabyte expects the slowdown to continue and maybe even become steeper: a 20% reduction in its overall shipment expectations for 2Q18, from 1.2M units down to 1M, and a 10% reduction in ASP (Average Selling Price) do speak to this decline in demand. As a result of this expected decrease, Gigabyte will once again turn its marketing efforts towards gaming products and usage scenarios for their graphics cards, diverting funds that had been allocated to mining.
Don't worry though: Gigabyte is doing great. 1Q18 saw the company post record profits higher than the first half of 2017 - 1Q18 profits rose 91% sequentially and skyrocketed five-fold YoY to NT$1.61 billion (US$52.75 million). The company's revenue for graphics cards hit an all-time high of 49% per graphics card sold (a result of increased ASP). the company's motherboard business should see the same results as the previous year - a fault of Intel's increased delays in launching a new, compelling product line-up. Who would have thunk - Intel, the company that's always launching new platforms and chipsets and ending motherboard support for new CPUs.
Source:
DigiTimes
Don't worry though: Gigabyte is doing great. 1Q18 saw the company post record profits higher than the first half of 2017 - 1Q18 profits rose 91% sequentially and skyrocketed five-fold YoY to NT$1.61 billion (US$52.75 million). The company's revenue for graphics cards hit an all-time high of 49% per graphics card sold (a result of increased ASP). the company's motherboard business should see the same results as the previous year - a fault of Intel's increased delays in launching a new, compelling product line-up. Who would have thunk - Intel, the company that's always launching new platforms and chipsets and ending motherboard support for new CPUs.
23 Comments on Gigabyte Expects Its Graphics Card Shipments to Fall by 20% in 2Q18
Dont worry though, no one would care if they werent, if they were unable to do great with the prices they and others charge.. then i cant even..
But now that it seems AMD has the acceptable volume in channel and their AIB's ebb-n-flow with getting GDDR and seems prices waver up/down. Nvidia said to have faired worse and may have a bulging of inventory. Seems like there AIB's might receive GDDR at volumes but might seem more consistent. Nvidia looks to dwindle down such inventory's at a rate that maintains there price position even if it mean push-back their next-gen parts.What? Have you read about... if they are doing anything it's a well kept secret.
This volatile combination simply means that demand is still above the level it has ever been especially at the midrange: the segment where people are equally price and performance aware. And to somewhat lesser extent the high end, where its mostly performance that is the main USP and where competition does not really exist.
The only change in the market has been dropping demand of the larger volume purchases for mining, but the demand for gaming is still there, because lots of people have waited it out. And the games actually want that higher performance by now, too, which further fuels the upgrade itch.
There plenty of competition in the Enthusiast segment not perhaps against the GTX 1080Ti, but for Vega 56 and 64 parts they are out there, and not as good as "GP104 prices", you can find 56's for down to $450. Considering the HBM pricing that not super out of a "perceived" price when generic equipped GTX 1070's are hovering at more often like $400.
The whole DRAM crisis is just the same thing really. You simply cannot defend the high cost of that is anyway related to manufacturing expenses.
And their shipments ONLY fell 20%? 20% as opposed to what? Did I just miss something? I hope their profits fell 100%, just like I hoped the price of GPUs fell the same.
And no, they didnt rip anyone off, there was a short supply of cards for some time so the laws of supply and demand kicked in.
Thanks for the laugh, so apart from ripping everyone off, they jacked the prices higher due to high demand, everyone else can see it.
That's why I could get a R9 280 for $140 long before the next replacement was even talked about (and would be just a re-brand). A card that MSRP for $280 March '14 was down to half by like Jan-Feb '15 because AMD/Rory had gotten themselves into a similar position Nvidia sits in, but they had to dump. Or, fall behind further, as at that point Nvidia had Maxwell in the market. So AMD drop that weight and got back on the gas! Leaving Rory on the side of the road.
Although, Today Nvidia enjoys no heat to cut prices (there out front and just need to back off a little), stretch-out "next-gen" discussion, then paper launch with FE's at inflated prices/minuscule availability, and hold on to what gamers perceive as value of outgoing and incoming parts. So, correct in this case BOM costs are not an issue for their strategy .
The simple fact that we are still waiting on card purchases is telling: the demand is still there... its blatantly obvious and somehow people cannot see it... weird. Its not a ripoff if a product doesnt fall to your preferred price point. Its business and as long as it sells, it will remain as is.