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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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Fox2232
Senior Member



Posts: 11809
Joined: 2012-07-20

#5558813 Posted on: 06/20/2018 07:38 AM
Took a while for them to openly admit that they did bump price on top of shops bumping price.
I wonder if some will try to choke supply to keep price high. At least there are many GPU manufacturers, so it takes just one to sell at good price.

ladcrooks
Senior Member



Posts: 369
Joined: 2016-12-29

#5558815 Posted on: 06/20/2018 07:43 AM
At least there are many GPU manufacturers,so it takes just one to sell at good price - we can only hope!

signex
Senior Member



Posts: 8823
Joined: 2005-07-15

#5558821 Posted on: 06/20/2018 08:13 AM
So thats great news right? graphics card will drop in prices?

Last week i got a brand new 1070 ti for 425 euros, probably cause of this.

moeppel
Senior Member



Posts: 153
Joined: 2015-06-30

#5558822 Posted on: 06/20/2018 08:16 AM
I mean, 1~3 year old cards returning to MSRP isn't exactly stellar but still better than nothing I suppose.

While GPU prices have been one road block I still think that RAM is the single biggest offender for quite a while now.

The former at least could've been picked up for more or less reasonable prices second hand for a while now - the latter not so much.

HardwareCaps
Senior Member



Posts: 452
Joined: 2018-05-03

#5558824 Posted on: 06/20/2018 08:34 AM
I love that crypto is dying but I don't think prices will ever return to MSRP before a new architecture is released.

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