Report Claims GPU Prices Are Set To Drop As Mining Demand Decreases
Taiwan-based graphics card makers including Gigabyte Technology, Micro-Star International (MSI) and TUL are expected to see their shipments for April plunge over 40% on month, as many clients have suspended taking shipments in response to drastic slowdown in demand for cryptocurrency mining machines, according to industry sources.
For months now, graphics card prices have shot through the roof at retail, making it much harder for gamers to upgrade their PCs at reasonable prices. However, we could be seeing a change on that front soon, as reports this week claim that demand from miners is dropping.
Most Taiwan makers of graphic cards saw their shipments, revenues or EPS hit new highs in 2017 and the first quarter of 2018, bolstered by raging crypto mining mania.
Gigabyte posted record shipments of 4.5 million graphic cards in 2017, up one million on year, with profits from the shipments doubling to over NT$2 billion (US$67.37 million). The company’s first-quarter 2018 revenues also hit a new quarterly high of NT$20.1 billion, surging 29.9% on quarter and 51.38% on year.
MSI raked in record monthly revenues of NT$11.73 billion in March 2018, up 27.17% sequentially and 33.49% on year, helping to push up the firm’s first-quarter revenues and profits to new highs.
TUL, dedicated to graphics card business, posted a record EPS of NT$9 in 2017, and also saw its revenues for March and first-quarter 2018 reach fresh highs.
Both channel distributors and mining farm operators are said to have cut orders on graphics cards and motherboards, all in preparation for a shift towards ASIC mining units. Due to all of this, graphics card makers are expected to begin cutting prices back down, which will result in lower profit margins, but could boost sales over May and June.
Report From: from DigiTimes