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.
Gigabyte outs a threefold of GeForce GTX 1050 3GB graphics cards - 06/14/2018 05:03 PM
Last month we already mentioned the product page of the 3GB OC edition of the GeForce GTX 1050. Two new models have made an entry though, these all are the 3GB models of the GTX 1050 (or should we s...
Gigabyte Shows a lot of Aorus at Computex - 06/09/2018 08:39 AM
In the final stages of photos to show you from Computex, the next one in line is Gigabyte. Active at two locations, the Taipei 101 suite and the TWTC convention center. For Gigabyte the strongest f...
Gigabyte to release Aorus DDR4 RGB Memory kits - 06/04/2018 08:53 AM
In a series of announcements on tidbit stood out, it seems Gigabyte is to pursue the memory market by releasing Aorus DDR4 RGB Memory kits. The products will be released in a 2x 8GB kit rated at 3200 ...
Gigabyte Teams Up With Intel On Side-Channel Vulnerabilities - 05/28/2018 08:56 AM
Gigabyte Teams Up With Intel To Upgrade Security Against New Derivatives of Side-Channel VulnerabilitiesUpdate To The Newest Gigabyte BIOS To Protect Your System...
Gigabyte GeForce GTX 1050 (3GB) Product page is Up - 05/26/2018 10:57 AM
Last week we mentioned that the SKUs based on the Geforce GTX 1050, a 3GB version of the GeForce GTX 1050 are a real thing. As it turns out, it is a 1050 Ti that is cut down with a 96-bit memory bus....
Senior Member
Posts: 377
Joined: 2003-06-28
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).
Senior Member
Posts: 146
Joined: 2015-03-06
They are simply priced too high for demand. The 1080/1070's released over 26 months ago, and the 1080 ti released 14 months ago. The used market is flooded with cheap mining cards and obviously, some purchasers are ok with the risk-reward of buying one locally or off sleeze-bay. Otherwise, you are still paying hundreds over original MSRP at Newegg etc. This whole video card pricing rollercoaster has left a very bad taste in my mouth for Newegg, Amazon, Nvidia etc. I used to love opening a new Newegg ad. Now, as I'm opening it, I'm uttering FU Newegg under my breath,
Senior Member
Posts: 278
Joined: 2015-11-18
And yet 2 year old GPUs are still way above MSRP. At this point with new GPU generation in the horizon they should be below MSRP and not at MSRP or way above it.
Have fun with that old overpriced unsold tech supply now.
Member
Posts: 80
Joined: 2016-02-09
The price won't go down fast , they got used to make a lot of money per card , so they try to keep the price as high as possible while they still manage to sell them , trust me people buy even @ the price we have now , so if we want the price to drop even lower people need to stop buying gfx's card's.
Senior Member
Posts: 999
Joined: 2001-08-12
Looks like we know who sent back 300k of GPU's now LOL.