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Guru3D.com » News » Graphics card shipments fall as mining demand weakens further

Graphics card shipments fall as mining demand weakens further

by Hilbert Hagedoorn on: 06/20/2018 07:32 AM | source: | 52 comment(s)
Graphics card shipments fall as mining demand weakens further

Graphics cards manufacturers see their shipments and sales drop ever since the second half of 2018, mostly due to a drop in demand from the cryptocurrency mining market. 

Sources from DigiTimes said that the cryptocurrency mining heyday seen between April 2017 and March 2018 suffered an abrupt downturn in April due partly to the Bitcoin value plunging to under US$7,000 from a peak of nearly US$20,000 recorded in December 2017 and partly to governments of China, South Korea, the US and many European countries rushing to clamp down on digital-coin exchanges following exposures of scams, frauds and market manipulations.

Taiwan graphic cards makers including Asustek Computer, Gigabyte Technology, Micro-Star International (MSI) and TUL have seen their inventories pick up significantly amid the drastic shrinkage in demand from cryptocurrency mining sector. But they have only slightly cut sales prices, maintaining gross margins at around 20%, which, though lower than the previous high of 40-50%, is still twice the level of 8-10% seen in early 2017.

Industry sources said that the prospects for cryptocurrency mining will be increasingly dim due to the enhanced crackdowns by governments in many countries, declining mining investment reward, and the possible move by governments to hike the electricity rates for cryptocurrency-mining uses. In fact, many individual miners and small mining farms have quit the market, and some medium and large-size mining farms have also scaled back their procurements of mining devices.

Accordingly, the sources expected the graphic cards supply chain to return in the second half of 2018 to the previous state of serving mainly the gaming sector seen before the rise of the cryptocurrency mining craze. And those makers with weaker deployments in the gaming sector may see their overall shipments of graphic cards fall significantly in the future.

Meanwhile, TUL is stepping up sales of industrial PC and datacenter acceleration cards as part of its efforts to offset the sales decline in mining graphic cards, the sources indicated.

 







« Serious Sam 4: Planet Badass - Gameplay Video · Graphics card shipments fall as mining demand weakens further · Review: Samsung C32HG70 FreeSync 2 HDR monitor »

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sverek



Posts: 6073
Joined: 2011-01-02

#5558825 Posted on: 06/20/2018 08:34 AM
Hopefully lower RAM prices, bring new GPUs at lower prices (without Crypro demand) and Zen2 + Ice Lake.

2019 should be a good year for upgrade.

RavenMaster
Senior Member



Posts: 1317
Joined: 2009-08-19

#5558828 Posted on: 06/20/2018 08:48 AM
Noticeably the GTX 1080 and 1080Ti founders edition cards are also classed as 'End of Line' on most websites and are no longer being re-stocked. This would signify Nvidia are getting ready to release their next GPU generation.

labidas
Senior Member



Posts: 328
Joined: 2013-03-06

#5558839 Posted on: 06/20/2018 09:40 AM
Noticeably the GTX 1080 and 1080Ti founders edition cards are also classed as 'End of Line' on most websites and are no longer being re-stocked. This would signify Nvidia are getting ready to release their next GPU generation.

or a rebrand for maximum profit :cool:

Kaarme
Senior Member



Posts: 2887
Joined: 2013-03-10

#5558848 Posted on: 06/20/2018 10:21 AM
Are there still enough miners buying Vega cards because their prices remain ridiculously high. I don't see gamers buying a Vega 56 if it costs more than a GTX 1080. Or is this just a European thing?

TheDeeGee
Senior Member



Posts: 7822
Joined: 2010-08-28

#5558850 Posted on: 06/20/2018 10:24 AM
And Nvidia not coming with a new card any time soon.

I'd say let them suffer for their disgusting price bump.

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