DigiTimes: GPU Price-Cut Campaigns to Increase in Duration, Discounts, as Manufacturers Digest Unsold Inventory
According to DigiTimes, NVIDIA and AMD partners are doing their best to digest unsold graphics card inventory via promotions and discounts. The idea here is that they can achieve increased amounts of revenue and move a lot of the graphics card stock they accumulated following (and counting on) the crypto craze. This move will certainly affect their bottom line when it comes to profits, but that's just what these companies have to do. Hardware sold at a tiny profit is always better than that which stays in the warehouse simply deprecating, and these companies know it best.
DigiTimes cites the example of AMD-partner TUL corporation which manages the PowerColor brand, saying that they achieved, via promotions, an increase of 115% in revenues on January (over their December values). This increase in revenue still compares negatively YoY, where it's still 85.7% lower compared to January 2018. And despite the increase revenue, profits declined to the red: the company had net losses of NT$10.31 million in January 2019 and EPS of negative NT$0.31. Some hard times could be coming for AIB partners, who will have to bite the bullet on pricing to move their stockpiles of older generation graphics cards.
DigiTimes cites the example of AMD-partner TUL corporation which manages the PowerColor brand, saying that they achieved, via promotions, an increase of 115% in revenues on January (over their December values). This increase in revenue still compares negatively YoY, where it's still 85.7% lower compared to January 2018. And despite the increase revenue, profits declined to the red: the company had net losses of NT$10.31 million in January 2019 and EPS of negative NT$0.31. Some hard times could be coming for AIB partners, who will have to bite the bullet on pricing to move their stockpiles of older generation graphics cards.