Gigabyte expects its graphics card sales to drop 20%
Table of contents:
- Less sales of graphics cards and motherboards for Gigabyte
- The company offers a line of products focused on mining
Gigabyte is already projecting a 'very tough' second half for its graphics card sales, with a 20% drop, as always, the fault lies with the cryptocurrency sector and the arrival of ASIC devices.
Less sales of graphics cards and motherboards for Gigabyte
As mining fashion seems to have hit a wall in recent months, Gigabyte is reviewing its expectations for graphics card shipments for this second half. The cryptocurrency market has slowed and as many graphics cards for mining are no longer sold as in the first months of this year, which has led to a sharp contraction in sales.
Gigabyte expects the slowdown to continue and perhaps even become more pronounced: a 20% reduction in its overall shipping expectations for the second half means that Gigabyte expects to ship 1 million graphics cards instead of 1.2 million units, and a 10% reduction in the ASP (Average Sales Price). As a result of this expected decline, Gigabyte will once again direct its marketing efforts toward gaming products for its graphics cards, diverting funds that had been allocated to mining.
The company offers a line of products focused on mining
During the first quarter of 2018, the company recorded record earnings higher than those recorded in the first half of 2017: earnings in the first quarter of this year increased 91% sequentially and increased fivefold from the previous year, reaching NT $ 1, 610 million (US $ 52.75 million). The company's graphics card revenue reached a record high of 49% per unit sold (as a result of the increase in ASP). The company's motherboard business should see the same results as the previous year, due to Intel's increasing delays in launching an attractive new product line.
Seen this way, it seems that the phenomenal sales of the first quarter are enough to 'save' the Gigabyte numbers for the rest of the year.
Disastrous drop in graphics card sales.
The drop in sales of the charts with the best-known brands falls. And not only that, but they also earn a bad image by selling their graphics used by Ebay due to competition from ASIC.
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