How Manufacturers Feel About Mining

[qubit]

You'd think they'd be really happy at all those killer sales of graphics cards, but it's actually quite a mixed response.

Check it out.

 

[qubit]

Anyone? I thought this would be a real conversation starter.

Also, is it just me, or have the prices of 1080 and 1080 Ti cards gone up significantly too?

 

[EarthDog]

If you want an idea of pricing go to pcpartpicker and look at pricing history.

 

[qubit]

Sure, I was only looking casually and it's quite noticeable. For example, that Palit GTX 1080 I bought a while back for £500 is now £600, which is a massive price hike. That's about the same as the others cost now.

 

[notb]

Anyone? I thought this would be a real conversation starter.

In one of the threads about mining I've said (and wasn't alone) that this could be a significant problem for card vendors and these arguments were laughed at. As such, I don't think there's much to add (and much will to discuss). We live in a world where quite a lot of people can't tell the difference between revenue and profit, so it's not easy to discuss cashflows and risks.

Also, don't be surprised this thread is not popular. The mining discussions on this and other forums (some reaching hundreds of posts) have also died away with the profitability. New people aren't drawn into the idea and those that invested heavily are busy trying to sell cards and to find a proper job...

 

[FireFox]

and those that invested heavily are busy trying to sell cards and to find a proper job..

It's not a Job, let's say it's a hobby, and those who really took it as a Job are dumb.

 

[r9]

It's not a Job, let's say it's a hobby, and those who really took it as a Job are dumb.

All my mining, building, repairing, jailbreking/rgh ventures are for one thing only and that is to support my hobby.
I haven't spent a penny from my day job.

 

[FordGT90Concept]

The same video was posted here:
https://www.techpowerup.com/forums/...shi-nakamoto-hides.234971/page-4#post-3690740

Manufacturers obviously fear the crash where the market gets flooded with used cards and it's difficult for them to make a new card sale. Not ramping production is really their only course of action to save themselves.

 

[r9]

The same video was posted here:
https://www.techpowerup.com/forums/...shi-nakamoto-hides.234971/page-4#post-3690740

Manufacturers obviously fear the crash where the market gets flooded with used cards and it's difficult for them to make a new card sale. Not ramping production is really their only course of action to save themselves.

Only reason why they are not bumping the production up is the added cost at no extra profit.
Because the market is what it is.
If one stepped up AMD or NVIDIA the other would follow for sure.
But both know that this is war not worth fighting.

 

[5DVX0130]

Anyone? I thought this would be a real conversation starter.

Also, is it just me, or have the prices of 1080 and 1080 Ti cards gone up significantly too?

With the exception of the 1080ti and low-end cards prices have gone up by about 25%.
Sadly, even the low-end cards are starting to rise in price. Since there is pretty much no stock on any mid/high-end card with the exception of the Ti.
Same thing is happening on the used market, which is a first.

Besides that it's a mixed bag for manufacturers, as already figured out.
Short term it’s great, since you have all the sales, i.e. revenue is higher.
Long term it’s a different story. For one you have way more RMA requests, which can easily eat all the profits. There is also the issue with a flooded market once whatever coin is being mined crashes.

Sadly, it doesn’t look like it’s going to get any better. Miners are going to continue to mine from now on till it becomes to hard or the coin crashes, and then wait till a new coin becomes popular and repeat the story.

 

[FordGT90Concept]

Only reason why they are not bumping the production up is the added cost at no extra profit.
Because the market is what it is.
If one stepped up AMD or NVIDIA the other would follow for sure.
But both know that this is war not worth fighting.

Every card they sell is another sell they lose when it crashes. Let's say they sell 1000 cards during the boom at $400 each (usually $300), that's $400,000 in revenue versus $300,000, which they like. Manufacturer places another order for 1000 cards and then the market collapses again. Those 1000 cards they previously sold flood the used card market. They now have 1000 cards they can't sell for the usual retail price at $300,000, they might only sell a 5th of them to people that refuse to buy used (200x$300 = $60,000). At the end of the day, they expected to get $600,000 from those 2000 cards. Instead, they only got $460,000 with a lot of inventory they can't move which makes retailers unhappy. Sure, they'll eventually sell those 800 remaining cards but odds are they'll get less than $300 for them. It hurts the bottom line.

This scenario doesn't take in account all the returns where people bought cards, the market crashed, and are requesting refunds within 30 days.

Markets love stability more than anything else. Stability is predictable.


Bitcoin has stabilized for the time being.

 

[Frag_Maniac]

The 1

Anyone? I thought this would be a real conversation starter.

Also, is it just me, or have the prices of 1080 and 1080 Ti cards gone up significantly too?

The 1080 looks to have gone up slightly, but here in the US, the 1080 Ti is mostly just staying the same. Fortunately for me the 1080 Ti is the only one I'm considering, since I plan on going to a 4k display soon. I really only worry that this will keep 1080 Ti prices from dropping as soon as they normally would, but I won't likely buy until end of the year, so I'm not too worried.

 

[FordGT90Concept]

1080 Ti price not falling is mostly on AMD. They've given no reason for NVIDIA to price drop.

 

[WhiteNoise]

This was cool. I hadn't thought about it at all but I have been ticked off a lot lately at the rising prices.
You don't want to know what I spent yesterday on my new GTX 1080Ti.....

On the flip side though I think I could sell my GTX1080 for $600 which is pretty cool...if I didn't already have a use for it in my daughters gaming rig.