Thursday, June 28th 2018
Gigabyte Expects Its Graphics Card Shipments to Fall by 20% in 2Q18
As the mining craze seems to have hit a steaming wall alongside the current contraction in the crypto market (which has almost all cryptocurrencies redlining), Gigabyte is revising its graphics card shipment expectations for 2Q18. This isn't a sudden move, mind you: the "cryptocurrency mining accelerator market" has been slowing its ludicrous demand for some time now. However, Gigabyte expects the slowdown to continue and maybe even become steeper: a 20% reduction in its overall shipment expectations for 2Q18, from 1.2M units down to 1M, and a 10% reduction in ASP (Average Selling Price) do speak to this decline in demand. As a result of this expected decrease, Gigabyte will once again turn its marketing efforts towards gaming products and usage scenarios for their graphics cards, diverting funds that had been allocated to mining.
Don't worry though: Gigabyte is doing great. 1Q18 saw the company post record profits higher than the first half of 2017 - 1Q18 profits rose 91% sequentially and skyrocketed five-fold YoY to NT$1.61 billion (US$52.75 million). The company's revenue for graphics cards hit an all-time high of 49% per graphics card sold (a result of increased ASP). the company's motherboard business should see the same results as the previous year - a fault of Intel's increased delays in launching a new, compelling product line-up. Who would have thunk - Intel, the company that's always launching new platforms and chipsets and ending motherboard support for new CPUs.
Don't worry though: Gigabyte is doing great. 1Q18 saw the company post record profits higher than the first half of 2017 - 1Q18 profits rose 91% sequentially and skyrocketed five-fold YoY to NT$1.61 billion (US$52.75 million). The company's revenue for graphics cards hit an all-time high of 49% per graphics card sold (a result of increased ASP). the company's motherboard business should see the same results as the previous year - a fault of Intel's increased delays in launching a new, compelling product line-up. Who would have thunk - Intel, the company that's always launching new platforms and chipsets and ending motherboard support for new CPUs.