Friday, November 23rd 2018

Following Crypto Bust, GIGABYTE May Hit the Red Line in Earnings

GIGABYTE, like most manufacturers of graphics cards, bet hard in the crypto craze to fuel demand for their graphics card solutions - an easy deal, considering the company is an AIB to both AMD and NVIDIA, which means they would cater to all of the cryptocurrency mining market. According to DigiTimes, market watchers are aware of the inventory buildup on GIGABYTE's watch, and cite the recent production issues with NVIDIA's latest RTX 2080 Ti graphics cards as reasons for the company to leave the black and cross the profit threshold towards a loss on the Q4.

GIGABYTE's Q3 was already reported as being a close cut in the earnings department, where the company didn't post losses simply because of non-operating incomes - meaning that inventory sold wasn't enough to offset all costs associated with bringing their products to market.
Sources: DigiTimes, Gigabyte Image
Add your own comment

50 Comments on Following Crypto Bust, GIGABYTE May Hit the Red Line in Earnings

#26
Vayra86
trog100its easy to be wise after the event.. :)

trog
Ehm, you can do a search of my post history, even just in response to your own posts to see that isn't true. I was that persistent dickhead that kept telling you it was about to implode and I was not the only one. LONG before it started getting unstable, too. It was always a gamble and anyone with two brain cells could see it was - even you did, but you were already invested so the choice to continue was easily made. The fact is, these companies and those who invested big in mining had dollar signs in their eyes that stopped them from seeing the truth on a philosophical level: human greed would destroy crypto sooner or later. As long as you can mine for profit to 'seed' the currency, it will fail, simply because it is not tied to the real economy in a realistic, sensible way. That opens the door for extreme speculation and shuts it tight for a healthy mix with that real economy. And a healhty currency cannot exist in a vacuum.
hatThe hardware manufacturers can't win though, can they? We were wielding torches and pitchforks when everything was out of stock or priced sky high, and now that they produced a ton of shit and they're sitting on all this inventory that's not moving, we say "let them burn".
Its called justice and a healthy correction of a market that has been going crazy lately. The correction is happening, now these companies need to get the memo and adjust. Its good they feel the pain and not us, this is the free market doing what its supposed to do. FWIW if that means Gigabyte falls, I won't even care, its not like their product is innovative in any way. They're always late to the party and cut corners the wrong way - Aorus is a great example.
Posted on Reply
#27
hat
Enthusiast
Nothing wrong with Gigabyte any more than any of the others, IMO.
Posted on Reply
#28
Vayra86
FordGT90ConceptBut you never know when "high" is high. Such is the case with any volatile investment.
Well, if you can do some basic interpretation of graphs...

First spike:



Second spike:



I think everyone has already had their fair warning in 2011, and the 2017-2018 boom was wishful thinking at best. Why on earth would the same little trick work 6 years later instead of repeating itself? They could have anticipated this, very easily.
Posted on Reply
#29
trog100
when you are seeing gains of two grand a week in things like litecoin.. its hard not to chase the rabbit..

i took the view that bitcoin had peaked and that the other altcoins would take over.. at first i was correct.. he he

but again i will repeat its easy to be wise after the event.. :)

trog
Posted on Reply
#30
FordGT90Concept
"I go fast!1!11!1!"
Vayra86Well, if you can do some basic interpretation of graphs...

First spike:



Second spike:



I think everyone has already had their fair warning in 2011, and the 2017-2018 boom was wishful thinking at best. Why on earth would the same little trick work 6 years later instead of repeating itself? They could have anticipated this, very easily.
Hindsight is always 20/20. Could crypto see another surge to $20k? Yes. Is it likely? No.
Posted on Reply
#31
R-T-B
FordGT90ConceptBut you never know when "high" is high. Such is the case with any volatile investment.
I've been fairly good at it. And everyone knew the last high was literally an alltime high.
Posted on Reply
#32
newtekie1
Semi-Retired Folder
This is one company that I wouldn't mind going under.
Posted on Reply
#33
R-T-B
newtekie1This is one company that I wouldn't mind going under.
I never root for anyone going under, more options and all... that being said they aren't what they used to be, either.
Posted on Reply
#34
newtekie1
Semi-Retired Folder
R-T-BI never root for anyone going under, more options and all... that being said they aren't what they used to be, either.
It takes a lot for me to wish for a company to go under, but I whole heartedly believe that the industry would be better without Gigabyte.
Posted on Reply
#35
R-T-B
newtekie1It takes a lot for me to wish for a company to go under, but I whole heartedly believe that the industry would be better without Gigabyte.
Considering they actually make their own boards (or at least, some of them, I heard they outsourced some recently) unlike some, I'm not so sure. We'd have a void to fill, though I'm sure Foxconn and the like would be thrilled.

That being said, I'm aware of the bad RMA practices, and the lousy customer support. I'm also aware their bioses tend to be shit (they leave them unlocked though, which I like). Any other reasons to dislike them? I mean if my customer return rate is anything to go by, board quality isn't awful, and other than RGB madness and the above, they aren't much worse than say ASUS in my books.
Posted on Reply
#36
Aquinus
Resident Wat-man
newtekie1It takes a lot for me to wish for a company to go under, but I whole heartedly believe that the industry would be better without Gigabyte.
I really can't speak to this too much, but I'm not entirely surprised. I haven't exactly heard great things about Gigabyte so I've mainly stayed away from them.
Posted on Reply
#37
FordGT90Concept
"I go fast!1!11!1!"
The only Gigabyte motherboard I worked with, memory support actually regressed with newer BIOS. Running older BIOS though, it has been working good for years.
Posted on Reply
#38
R-T-B
FordGT90ConceptThe only Gigabyte motherboard I worked with, memory support actually regressed with newer BIOS. Running older BIOS though, it has been working good for years.
I've always felt the hatred of gigabyte is 60% bios issues (which are real) and 40% lousy RMA service (which are also very real).

Oh, I'm certain that hatred is 100% earned. But still, there are others that do similar and get away with it. Curious what else people dislike that pushes them that much over the edge.
Posted on Reply
#39
JaymondoGB
Just got to deal with the pain and sell the extra inventory at cost or below. Sitting on it and hoping wont do. Nor will holding back new parts, as most PC buyers will simply wait, and that wont help the bottom line either
Posted on Reply
#40
eidairaman1
The Exiled Airman
lexluthermiesterNothing, they're just greedy.
They'll implode if they dont slash prices on old parts.

Not like their Quality is great like it was before 2013 and their Bogus RMA dept damaging parts so they don't have to grant the rma for their crap parts. GA needs new management...
Posted on Reply
#41
Space Lynx
Astronaut
newtekie1It takes a lot for me to wish for a company to go under, but I whole heartedly believe that the industry would be better without Gigabyte.
I'd be ok with them going under, honestly their VRM cooling on motherboards has been so bad it's very embarassing... MSI and Asus literally destroy them on VRM cooling for 5+ generations in a row now on motherboards, and Gigabyte still doesn't care about the consumer... or innovating... at least MSI innovated and got better. As far as I am aware MSI even uses next gen VRM chips - or at least Z370 gen they did and were ahead of the game over everyone while still maintaining fantastic price points.
Posted on Reply
#42
Reeves81x
R-T-BI mean, not really. First litecoin run I pretty much didn't need my job I was doing so well. This time I did badly, but I knew I would and did it mostly for the articles until everyone declared them spawn of satan... But point still stands if you have half a brain this market isn't that complicated, really. It's like any other. You simply do not invest on a high...
how much invested, profit, operating cost, when you cashed out, how you cashed out. Too many variables. Yes, if you made it your life you could have made a few bucks... but not the "gold mine" that people thought it was.
R-T-BI mean, not really. First litecoin run I pretty much didn't need my job I was doing so well. This time I did badly, but I knew I would and did it mostly for the articles until everyone declared them spawn of satan... But point still stands if you have half a brain this market isn't that complicated, really. It's like any other. You simply do not invest on a high...
if you are talking stock investment, then yes its like any other stock, of course....
Posted on Reply
#43
R-T-B
Reeves81xhow much invested, profit, operating cost, when you cashed out, how you cashed out. Too many variables.
That's hardly "too many variables." Any miner worth his salt tracks every single one of those. It is not an incredibly complex problem and is the basis of "ROI."

I can safely say with certainty I made several times my investment. The only arguement I could make against it would be a labor one. But that was a different market than now.
lynx29As far as I am aware MSI even uses next gen VRM chips
Don't mention the X399 XPower or it's Nikos PowerPaks. ;)
Posted on Reply
#44
Space Lynx
Astronaut
R-T-BThat's hardly "too many variables." Any miner worth his salt tracks every single one of those. It is not an incredibly complex problem and is the basis of "ROI."

I can safely say with certainty I made several times my investment. The only arguement I could make against it would be a labor one. But that was a different market than now.



Don't mention the X399 XPower or it's Nikos PowerPaks. ;)
No AMD motherboard has ever really equaled Intel yet for budget to mid-range price point and great VRM cooling, all the manufactures have sort of cheaped on AMD for years now, so I can't agree with your point here. It has always been this way, even back in AMD 7950 and 6950 gpu days, they lost value so fast compared to nvidia cards mainly because everyone new the overall quality of the hardware was just cheaper.
Posted on Reply
#45
Reeves81x
R-T-BThat's hardly "too many variables." Any miner worth his salt tracks every single one of those. It is not an incredibly complex problem and is the basis of "ROI."

I can safely say with certainty I made several times my investment. The only arguement I could make against it would be a labor one. But that was a different market than now.
i certainly didn't mention all of the variables, lol. The variables are what drove the stock up and made it a "bubble" and destined to burst... Proof is at hand. It was always an unstable market. Just because you made a few bucks doesnt negate the fact that most people lost.
Posted on Reply
#46
R-T-B
Reeves81xi certainly didn't mention all of the variables, lol. The variables are what drove the stock up and made it a "bubble" and destined to burst... Proof is at hand. It was always an unstable market.
No disagreement re the instability and most doing poorly. But few put in the effort to monitor the trends, either. There really aren't that many factors in an ROI equation. It boils down to income vs cost. If you can predict market swings (and yes, if you monitor the crypto hotspots like a hawk, you can) you can do well. No different than any other market.
lynx29No AMD motherboard has ever really equaled Intel yet for budget to mid-range price point and great VRM cooling
Some ASRock options and ironically a certain gigabyte x399 come to mind... but as a general truth maybe.
Posted on Reply
#47
Space Lynx
Astronaut
R-T-BNo disagreement re the instability and most doing poorly. But few put in the effort to monitor the trends, either. There really aren't that many factors in an ROI equation. It boils down to income vs cost. If you can predict market swings (and yes, if you monitor the crypto hotspots like a hawk, you can) you can do well. No different than any other market.



Some ASRock options and ironically a certain gigabyte x399 come to mind... but as a general truth maybe.
x399 is not budget >.> I was specifically saying the typical builds for mainstream mid tier gamer, which is the vast majority of us. :p
Posted on Reply
#48
R-T-B
lynx29x399 is not budget >.> I was specifically saying the typical builds for mainstream mid tier gamer, which is the vast majority of us. :p
Meant x370. Mental typo courtesy all the vaguely similar chipset names. :p
Posted on Reply
#49
bajs11
the miners made most mid to high end gpus cost twice as much as their msrp and those board partners made lots of money because of that
its laughable they are all losing money now
Posted on Reply
#50
newtekie1
Semi-Retired Folder
R-T-BConsidering they actually make their own boards (or at least, some of them, I heard they outsourced some recently) unlike some, I'm not so sure. We'd have a void to fill, though I'm sure Foxconn and the like would be thrilled.

That being said, I'm aware of the bad RMA practices, and the lousy customer support. I'm also aware their bioses tend to be shit (they leave them unlocked though, which I like). Any other reasons to dislike them? I mean if my customer return rate is anything to go by, board quality isn't awful, and other than RGB madness and the above, they aren't much worse than say ASUS in my books.
The product quality isn't really an issue. Nothing they make is the best in the industry. The motherboards are just meh, and their graphics cards are the worst aftermarket cards you can buy(because they still insist on using absolute shit fans).

But the real issues, the ones I say they should go out of business for, are how they run their business and treat their customers. They are easily the worst company to do business with out of all the big names. They straight up lie to customers, they damage returns so they can refuse the RAM, they act completely cold when they are inconveniencing you, in fact they'll actually act like you are bothering them just to get a replacement for their broken product.
Posted on Reply
Add your own comment
Dec 18th, 2024 22:29 EST change timezone

New Forum Posts

Popular Reviews

Controversial News Posts