Monday, November 19th 2018
Bad Times for Motherboard and GPU Makers: Oversupply and High Prices in 1H19
The "sustained chill in the crypto mining sector" is, according to Taiwan-based sources cited at DigiTimes, one of the leading reasons motherboard and graphics cards makers will face a bleak scenario in the next few months. According to those sources, other factors such as the US-China trade war doesn't help a situation on which NVIDIA new RTX family hasn't helped due to the high price of those GPUs. ASUSTeK Computer and Gigabyte Technology have seen their inventory levels drive up, "causing their revenues for the peak season to fall under expectations".
These problems now join the ones Intel is facing with its shortage of processors, and according to DigiTimes, revenue prospects for the fourth quarter are further dimmed by lingering sluggish demand from the DIY market among other things. To counteract these problems those companies could actually be could be further adversely affected: "Nvidia and Intel likely to raise their chip prices to maintain profitability", a move that could lead to a bleak profitability period starting in 2019.
Source:
DigiTimes
These problems now join the ones Intel is facing with its shortage of processors, and according to DigiTimes, revenue prospects for the fourth quarter are further dimmed by lingering sluggish demand from the DIY market among other things. To counteract these problems those companies could actually be could be further adversely affected: "Nvidia and Intel likely to raise their chip prices to maintain profitability", a move that could lead to a bleak profitability period starting in 2019.
55 Comments on Bad Times for Motherboard and GPU Makers: Oversupply and High Prices in 1H19
intel cpu prices will stay high.. amd prices (increased demand) will go up but not their graphics cards which will have to compete with the plethora of nvidia mid range cards..
the US China trade war wont do anybody any favours ether..
trog
Idk what people are talking about. Prices are dirt cheap. Even ram has been good.
They just dont want to pay the price for catering to the mining market thinking it was going to last forever, now they will pay with the financial Q results.
Harddisks as well... they are already cracking $0.02 /GB (downwards) on the larger drives.
Everything else... not so much unfortunately.
I really wanted an upgrade this year with everything that appeared, but with 7nm on the horizon and all this mess with prices, I'll just wait a bit longer.
'nuff said :D
It's them share holder's i tells thee , get em.:p
Why would I buy a 9900K at $700-800 when I can get a i7 6950x for just $600 (bought it last july, best choice I've ever made to upgrade from a 5820K) that OC at 4.3-4.4GHz easily, more powerful and run cooler with a cheaper cooling solution (Fractal Design Celsius S24 in my case)... You want a new RIG ? A cheap R7 1700X OC 4GHz or a R5 2600 / R7 2700 OC with a used GTX10XX, best buget and powerful rig as good as a powerful CPU with RTX2070/80.
GTX10XX are very good cards with great quality build, so no need to fear used GPU even from Mining because they were used in cool environment and often set to run in low power to save energy.
Just let NVIDIA keeps its overstock and RTX, Intel can keep its i9 series that aren't interesting at all compared to the previous 8 series, but the Intel price is so high that AMD is now the best Performance/price budget.
2019 is going to be rough for NVIDIA and Intel !
Smarter Choice . . .
We are on dark times, anyone denying it is a PC elitist or something.
Yes we can go Ryzen 2600 + RX580 route, but that is far from being high-end nowadays. It is even low/mid-end on some games already. And you still have to pay crazy amounts of money for ram (in fact more expensive than motherboard or cpu) and resign yourself to a HDD to install your games.
If the industry doesn´t change price wise, we might see PS5 or Xbox 2 dominating the market again. Think about it, PS4 is at 100 million units sold and this gen imo wasn´t even the best we ever had. Simply put people can´t bother with investing on gaming PCs with these prices. They invest on a fortnite/CS/Dota rig, wich can cost 400€-600€ and they get a console for AAA titles, simple as that.
The fact some companies got greedy might take a big hit on PC gaming market.
I game at 4k and have Vr working fine ,I use that compromise melarky to make do a lot (last pc5 years old), don't we all, no just the majority does.
ask your buddy there, he knows the answers!yep. 7nm gpu and cpu in winter or fall 2019, prob my last silicon build and a playstation 5, prob retiring from gaming after that
Why would a company short available supply ? Cause they can, right or wrong consumers simply are not choosing the alternative. AMD Q3 2017 CPU market share =22.3% ... Q3 2018 = 20.9%. AMDs most popular card (480) in use today is 28th in sales. The most popular current generation card is the 580 at 0.54%. The 1080 Ti has 3 times that ... the 1060 with which it competes has 27 times the market share. After 15 months on the market, no Vegas on the list.
The whole market is dropping for the most part as the new generation arrives and folks are sitting waiting for prices to drop, only the mid range nVidia cards showed significant gains
AMD Radeon R7 Graphics - 0.87% down 0.04% market share since last month
AMD Radeon R5 Graphics - 0.67% down 0.04% market share since last month
AMD Radeon RX 480 - 0.60% down 0.02% market share since last month
AMD Radeon RX 580 - 0.54% up 0.03% market share since last month
NVIDIA GeForce GTX 1060 - 14.79%, up 0.50% market share since last month
NVIDIA GeForce GTX 1050 Ti - 11.07%, up 1.37% market share since last month
NVIDIA GeForce GTX 1050 - 6.40%, up 1.27% market share since last month
It will be a month before we see the impact of the excess 1xxx inventories being emptied and 2xxx / 590 sales
But yes, welcome to capitalism... where corporate law requires companies to maximize shareholder value; failure to do so is fiscal misconduct. So yes, as long as demand outstrips supply, prices will go up. Complaining that companies charge "whatever they can get" is like complaining that the dog next door walked thru the hole in your fence and impregnated ya dog that ya left unsupervised.
And while cheaper is always better, ***whether perceived or imagined***, they not going to choose a$6 burger over a $7 steak.
Three things one can do ...
1. Resist the need to be the 1st on on block with new shinny thing and don't buy anything
2. Write to your elected representatives and push to move the tariff from PC parts to completed systems ... already movement here.
3. If the competitions product provides real value for you buy it.
The price of 10xx series cards dropped because of excess inventory ...now demand exceeds inventory and they over $1,000 Want them to come down again, stop buying them.
The average joe may still think AMD has a terrible performance and not future proof (bad image) products.
fact: my closest friend who doesn't really follow up with the latest tech (and now he use ryzen and radeon rx 580 instead 1060)
1080gtx, xeon, 12gb ddr4, 1gbps internet connection
they will have upgrades in 2019
cost ? : 30euros/month for 12months
that's 360euro for a somewhat high-end computer if you're poor or if you just want to wait out until pcie4/ryzen2/ddr5/next gen take your pick.
Hell, that's how much you pay for a smartphone today!
About the only thing that has gone down is how many cores you get for your $$$ and $/GB in SSDs."Whining" is entirely the wrong word to use. That implies weakness on the part of the customer.You have to account for inflation though. That's about $2300 in today USD.