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Guru3D.com » News » Gigabyte graphics card shipments to drop 20% in 2Q18

Gigabyte graphics card shipments to drop 20% in 2Q18

by Hilbert Hagedoorn on: 06/28/2018 07:42 PM | source: | 32 comment(s)
Gigabyte graphics card shipments to drop 20% in 2Q18

We mentioned a global drop in demand already, now things solidify as a surge in cryptocurrency mining demand is dragging down Gigabyte Technology's graphics card shipments in the second quarter, which are set to fall about 20% sequentially with average selling price (ASP) for such cards dropping 10%, according to the company.

At an investors conference held June 27, Gigabyte said its graphic card shipments for the second quarter are estimated at around one million units, down from 1.2 million of a quarter earlier, reports digitimes:

As it remains unclear as to when Nvidia will release its new GPU platform in the second half of 2018, Gigabyte can hardly assess its shipment momentum in the third and fourth quarters. Nevertheless, the firm still expects its annual earnings from graphic cards for 2018 to be higher than that a year earlier, bolstered by the much higher corresponding profits scored in the first half of the year than in 2017.

 

 

 

Before the crypto mining craze subsided abruptly in April 2018, Gigabyte maintained a hefty profitability scenario in the first quarter, with its net earnings for the quarter shooting up 91% sequentially and skyrocketing five-fold on year to NT$1.61 billion (US$52.75 million), a new quarterly high and even higher than net profits for the first half of 2017. Revenues for the first five months still surged 40% on year to NT$30.53 billion. As crypto mining graphic cards can hardly generate high gross margins amid the sustained weakness in demand, Gigabyte will focus more on promoting graphic cards for gaming devices in the second half of 2018, the company said.

Company statistics also indicate Gigabyte's revenue ratio for graphic cards hit a high of 49% in the first quarter of 2018, compared to 36% for motherboards and 15% for servers. But the ratio for servers already soared to 20% in the second quarter amid the declining graphics card shipment momentum. Meanwhile, Gigabyte's motherboard shipments reached 3.3 million units in first-quarter 2018, and 1.1 million units each for April and May, with second-quarter shipments likely to remain flat or increase slightly compared to the first quarter. The company expects its annual motherboard shipments to be in the same range of 12-13 million units as posted for 2017, instead of accomplishing a 10% annual growth estimated in early 2018. This is due mainly to a delay in the arrival of Intel's new-generation CPU platform, the company indicated.

Gigabyte has landed big orders from Yandex of Russia and Penguin Computing of the US for server products. This is expected to help push up the firm's 2018 server revenues by 20% on year.







« Antec Announces New High Current Gamer Extreme Series PSUs · Gigabyte graphics card shipments to drop 20% in 2Q18 · Razer Huntsman keyboard delivers gaming performance with new switch technology »

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icedman
Senior Member



Posts: 1261
Joined: 2013-02-22

#5561191 Posted on: 06/28/2018 11:53 PM
^having them dedicate gpu's to mining solves nothing since it still takes away from available gpu's that could go into gaming cards so u end up in the same situation. The only think Nvidia/AMD could do is not allow mining at the driver level but miners would find a way around this and also why would they try and stop miners from buying their gpu's

FookDat
Senior Member



Posts: 485
Joined: 2005-11-27

#5561193 Posted on: 06/28/2018 11:58 PM
^having them dedicate gpu's to mining solves nothing since it still takes away from available gpu's that could go into gaming cards so u end up in the same situation. The only think Nvidia/AMD could do is not allow mining at the driver level but miners would find a way around this and also why would they try and stop miners from buying their gpu's

Make different gpus... they use different gpus on the physics cards dont they and dedicate apu cards... why not dedicated hardware for mining... there is a way. They just like the money they are making. Actually it will solve the problem. You just are not thinking correctly.

airbud7
Senior Member



Posts: 7835
Joined: 2011-07-20

#5561199 Posted on: 06/29/2018 12:42 AM
I'm surprised how many people on ebay are selling their used GPUs for so close to the MSRP. Spend an extra $20 or so and you can buy the same thing but brand new.

I was looking at this one https://www.ebay.com/itm/MSI-NVIDIA-GeForce-GTX-1060-3gb-OC-Gddr5-MINT-in-Box/173383692114?epid=1582100212&hash=item285e792f52:g:GREAAOSwKJ9bNGKt
owner says "THESE CARDS WERE NOT USED FOR MINING!"
your thought? ebay says $165 for me.
sorry if ot...should have PM you schmidtbag

The Goose
Senior Member



Posts: 3039
Joined: 2008-02-25

#5561203 Posted on: 06/29/2018 01:10 AM
All they have to do to stop the mining issue is make dedicated cards for mining only, dont allow gaming gpus to do mining... PROBLEM SOLVED! Thats what firepro cards are for right?! Video editing and compression they specialize in it! They already have options to choose to set it to graphics or computing. But they are making so much money off the price hiking they wont stop.
Video card manufacturers should be held accountable just like the memory companies just got sued for 8 billion dollars for doing the same thing!
These big companies love the high demand and low supply allows them to charge whatever they want cause they know people will buy it. Plus they are not coming out with another graphics card till next year. They are milking it. Instead of the 1080 price going down they will discontinue it when they release the next card.
PC master race is no more, not when consoles play games with a flat rate cost and prices go down for those systems not up!
With games being released under developed and the cost going up not down. No wonder they are seeing sales go down..
What genius got paid millions to figure that out. We charge to much for our products and dont lower prices over years, in fact raise prices! hmmmm why are people not buying our stuff!?

Stop making gpus do computing/mining.

I mean we have server and desktop cpus for a reason right?
Why are we not making gpus be the same. Then they can charge miners double and triple for their cards and the gamer market can come back! Want to increase sales fix the mining and gamer gpu sharing issues....
Probably because mining only cards would have no resale value to another miner....at least a miner can sell on old gpu`s to gamer`s without having to declare or admit they were used for mining and had the nuts thrashed off them.

Monchis
Senior Member



Posts: 1303
Joined: 2014-06-15

#5561204 Posted on: 06/29/2018 01:10 AM
Meanwhile, graphics card prices are still near double what they should be. A low end GTX 1060 3GB is $250+ should be $149 by now ($179 at launch).


Wait for the ddr4 version.

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