Monday, November 19th 2018
Bad Times for Motherboard and GPU Makers: Oversupply and High Prices in 1H19
The "sustained chill in the crypto mining sector" is, according to Taiwan-based sources cited at DigiTimes, one of the leading reasons motherboard and graphics cards makers will face a bleak scenario in the next few months. According to those sources, other factors such as the US-China trade war doesn't help a situation on which NVIDIA new RTX family hasn't helped due to the high price of those GPUs. ASUSTeK Computer and Gigabyte Technology have seen their inventory levels drive up, "causing their revenues for the peak season to fall under expectations".
These problems now join the ones Intel is facing with its shortage of processors, and according to DigiTimes, revenue prospects for the fourth quarter are further dimmed by lingering sluggish demand from the DIY market among other things. To counteract these problems those companies could actually be could be further adversely affected: "Nvidia and Intel likely to raise their chip prices to maintain profitability", a move that could lead to a bleak profitability period starting in 2019.
Source:
DigiTimes
These problems now join the ones Intel is facing with its shortage of processors, and according to DigiTimes, revenue prospects for the fourth quarter are further dimmed by lingering sluggish demand from the DIY market among other things. To counteract these problems those companies could actually be could be further adversely affected: "Nvidia and Intel likely to raise their chip prices to maintain profitability", a move that could lead to a bleak profitability period starting in 2019.
55 Comments on Bad Times for Motherboard and GPU Makers: Oversupply and High Prices in 1H19
Nvidia is overpricing RTX line having flooded the market with GTX cards, hurting motherboard makers.
Motherboard makers keep promoting Nvidia and Intel hardware anyway possible.
Let them bleed.
Cut the crap lads. The market will react according to economic laws.
It sure as hell ain't me. As long as the current status quo is maintained, I'm not buying a single thing. We're still paying full price for 3 year old GPU performance, DDR4 is getting old and still too expensive. There is actually not that much to upgrade to these days. You're not missing much by sitting on your old stuff for a bit longer.
Its time for the supply side to get in line and stop being greedy bastards. The whole chain, that is.
oversupply => high prices
if so - how about we drop any BS about any status of supply (like why waste mental energy) and just raise prices, because in these oligopoly market fixing times prices can only go up anyway (at least that is what BS press releases like these try to tell us every other week).
Also, did the writer forget about AMD? AMD's prices havent gone up, their motherboards are still sanely priced. Does this nebulous "trade war" impact somehow only affect team blue and team green, but not team red?
WCCFtech would be embarrassed by an article like this.
It will be a crude awakening for the AIBs to one day realize that people don't actually want to pay $1000 for a mobo, no matter what's the excuse.
No manufacturer wants to drop the gpu price, bean counters at these companies compare today's prices to mining high prices which is not applicable anymore.
The mining craze is over and NO the mining crazy prices is NOT the new normal.
The price today is still higher than the normal price was two years ago and they have the stomach to call today's prices a sale.
They are so cheap they cry when taking a sh!t, drop the price of graphic cards FOR REAL well under prices two years ago and see the stock vanish like magic.
This really is like hangover talk... Cut the darn RGB crap and save on that maybe?
What a perfect storm... for intel & nvidia...
Can also see why intel motherboard makers are nervous... they'll have to be pushing Ryzen boards if intel completely faulters and can't ship anything.
But you've got to love the Miner BS. We are all damned if they buy stuff so that we can't buy it, and we are all damned if they don't buy it, and as a reward, the prices increase, cos, you know, there all about the Gamers, right? Has nGreedias nasty little backwards marketing department infected the rest of the industry? Are they all trying to be Apple now?
But I bet Intel and nGreedia have simply leaned on the OEMs and told them they will be punished if they sell their stuff at low prices.
Oh well, in about 4 days we'll see an article about a shortage of these parts rather than an oversupply.
And with intel's supply issues, they will lose market share since they actually have a competitor in the space. Nvidia is going to be in the same boat soon... once they realize that people aren't ready to shell out $1200 for better looking shadows and reflections.
There is only so long they can hold that hardware until it becomes completely worthless, so at some point there are going to be a boatload of cheap gpu's around. Right? because that has worked... just the sheer amount of raw materials involved, the complexity of every single element and chip that goes into these devices means that no matter how large a government bureaucracy you have they will never come up with an appropriate/correct price cap number. Whats more economically valuable? Glass on an iphone or glass on a surgical device? And is the government going to make that choice now that they are controlling prices?
I've stood enough hours in bread lines to know that government price fixing just ends up doing the opposite of what it attempts to do.
www.bloomberg.com/opinion/articles/2018-01-18/yup-rent-control-does-more-harm-than-good
en.wikipedia.org/wiki/Economic_liberalisation_in_India
Just to make sure to really nail those corporate stock values...