Tuesday, June 17th 2014

Graphics Card Shipments to Drop Drastically in Q2 2014

Graphics card vendors are bracing for a brutal spell for Q2, 2014, in which they expect sales to sequentially drop by 30 to 40 percent. They are attributing this to swelling inventories (unsold graphics cards) lower down the supply chain. The drop in graphics card sales, for the first time, is being attributed to a drop in the demand for GPUs by crypto-currency miners, who are either moving on to more energy-efficient mining technologies, such as ASICs, or quitting the business, following the drop in value of various major crypto-currencies, such as Bitcoin. These miners end up selling high-end graphics cards at attractive prices on marketspace websites such as Ebay, affecting brand-new high-end graphics card sales. Graphics card vendors (AIB and AIC partners), have asked GPU manufacturers AMD and NVIDIA, to help them cut prices to boost sales, however, both have cut down supplies, to deal with the situation, instead. Swelling inventories often translate into price-cuts for the end users, so be on the look out.
Source: DigiTimes
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51 Comments on Graphics Card Shipments to Drop Drastically in Q2 2014

#51
arbiter
john_All those mining cards are still in warranty, right? In Europe all electronics have a minimum of two years. So, worst case scenario, the only case scenario where AMD and it's partners are going to regret really really badly the choice of letting those cards constantly run at 94 Celsius, is if those cards start dying in a few months or a year from now before the warranty period is over.
Laws in every country are different, Some don't have law saying warranty is transferable and not every company does that. But even then NOW you gotta go through whole 2-3 process headache of RMA'ing it if you can which for me isn't worth the headache.
RCoonPhysX licensing or something? :laugh:.
They did License it to MS and Sony for use in take a small guess what? yup xbone and ps4
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#52
Casecutter
xviAMD would be hurting now if they made the mistake of spending all that money from the cryptocurrency craze leaving themselves with nothing to ride out the post-crash.
I think this is a misnomer. AMD maintained the wafer starts they had scheduled that's all they could do, while they provided product at the contracted price agreed upon months ago. AMD made no extra money, although the product they delivered needed no discounts or be supplemented with rebates.

There was indications that AMD did move wafer "starts" from Hawaii (originally AIB saw expectations low(er) and didn’t commit big to AMD, most not even ready for it). Given that I understand AMD might've flipped any excess Hawaii capacity "starts" to Tahiti; a) While that premium Hawaii chip was revered for mining, wouldn't AMD rather not water-down such premium offering in the used market when thing went bust?; b) AMD’s contract price to AIB’s for Tahiti was probably as lucrative or better, and yields spot-on; c) They get to move more units per wafer and volume is what was being clamored for; d) The increase in "Tahiti" gave rise to the “Pro” bins filling sooner, perhaps something AMD had yet to give the AIB’s in R9 280 spec's or pricing. That gave them a new Sku to price, which gave them something from mining boon in increase volumes at a good return. The problem it showed early March… within 90 days mining was already starting to go "bust".
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