ASRock says graphics card prices are falling amid lower demand from Chinese cryptominers

[midian182]

Why it matters: With the constant barrage of bad news about how long the chip shortage is predicted to last, here's something that should put a smile on gamers' faces. ASRock believes graphics card prices are falling as a result of China's crackdown on cryptomining. Additionally, shipments of AMD GPUs are expected to improve as substrate production capacity increases.

It was back in May when a Chinese State Council committee led by Vice Premier Liu He announced the crackdown on virtual currencies as part of efforts to curb financial risks. It was the first time China's cabinet targeted mining, a massive business in a country that accounts for up to 70% of the world's crypto supply.

Clamping down on Chinese cryptomining is having an effect on demand for graphics cards in the country. To give you an idea of how much impact the practice has on the market, 700,000 graphics cards that shipped globally in the first quarter ended up in the hands of miners. That equates to around 25% of all graphics cards shipped between January and March.

BTC's price has dipped by about $27,000 since mid-April

DigiTimes reports that ASRock is confident about its sales and profits in Q2 thanks to strong demand for graphics cards, industrial PCs, and servers. It expects sales to grow sequentially in the third quarter despite the global chip shortage.

We've long known that miners are exacerbating graphics cards' availability problems. But with China's crackdown and BTC's price still below $40,000—partly because of Elon Musk—demand in the country is cooling. There's also the prospect of miners selling their cards on the second-hand market, thereby improving supply.

Another section of the report that gives cause for optimism is ASRock's prediction that AMD GPU shipments will improve in the second half of the year due to capacity adjustments and increasing supply of substrates. Team red boss Lisa Su recently said she believes its CPU shipments will improve later in 2021, could the same be true of its GPUs?

Like many tech companies, unprecedented demand has boosted ASRock's bottom line. Its net profit came in at a record $17.88 million in Q1, up 167% YoY. Graphics cards will account for 20% of ASRock's second-quarter revenues while motherboards grab 50%. However, its mobo shipments are suffering due to shortages of Intel and AMD CPUs, a problem it says will not improve until the fourth quarter.

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https://www.techspot.com/news/90096-asrock-graphics-card-prices-falling-amid-lower-demand.html

 

[captaincranky]

YAY! (?) (Or in my case, "so what").

 

[captaincranky]

China's cabinet targeted mining, a massive business in a country that accounts for up to 70% of the world's crypto supply

From the same wonderful people who brought us SARS-2.

Although it does seem an oppressive Communist regime is one of the few that is exhibiting good common sense in this regard,

 

[R00sT3R]

Shows why AIB cards(Asian brands like Asus,Gigabyte,Msi and the rest) have been so rare outside of the Asian market, the bloody Chinese are buying them all up before they even get a chance to be put on a container ship for the West.

 

[QuantumPhysics]

The amazing thing about the Pandemic scalping is that even the worst GPU brands sell out.

 

[Watzupken]

Shows why AIB cards(Asian brands like Asus,Gigabyte,Msi and the rest) have been so rare outside of the Asian market, the bloody Chinese are buying them all up before they even get a chance to be put on a container ship for the West.

I think just because it says China, does not mean that the people buying are actually from China. Big mining companies set up mining operations where cost is low, so naturally, China is one of them. I feel this lull in pricing may not sustain if prices of crypto remains high. Demand in China has stopped because of the clamp down by the government. But again, the people behind this mining operation may move it out of China to other cheap locations to continue mining. So the demand will simply just move from one location to another. The small time miners likely won't make a huge dent on supply.

 

[Neatfeatguy]

Shows why AIB cards(Asian brands like Asus,Gigabyte,Msi and the rest) have been so rare outside of the Asian market, the bloody Chinese are buying them all up before they even get a chance to be put on a container ship for the West.

Newegg has a lot of these AIB (a lot of Gigabyte, at least) in their shuffles. Then again, newegg is owned by a Chinese company (Liaison Interactive).

 

[punctualturn]

Hopefully this is true and I can finally move away from nvidia to a nice AMD GPU!

 

[duckofdeath]

They've increased income by 75% a year the average GPU price have more than doubled?
I have a feeling they're starting to realize they're losing the gaming community. I'm seriously considering just stop wasting money on PC hardware, lots of others have, too. This could backfire really hard on the industry as it's hard to regain trust from people you've lost.

 

[grumblguts]

To late I jumped to consoles.

 

[hahahanoobs]

They've increased income by 75% a year the average GPU price have more than doubled?
I have a feeling they're starting to realize they're losing the gaming community. I'm seriously considering just stop wasting money on PC hardware, lots of others have, too. This could backfire really hard on the industry as it's hard to regain trust from people you've lost.

NVIDIA revenue from gaming has doubled since last year QoQ. And with another point jump to 82% marketshare, they're not worried about a thing. Both sides are being hit by the shortages and Nvidia is still pumping out more than AMD so who do you think is going to jump from where to where?

 

[mrtraver]

Lower prices mean nothing when you still can't find one available outside the scalper or used markets.

 

[terzaerian]

To late I jumped to consoles.

You were never one of us in the first place.

 

[punctualturn]

You were never one of us in the first place.

LOL

hey, give the man some slack, we are living on some crazy times.

I was able to get a series x at msrp, yet no matter how hard I try, can’t catch a radeon card at amd at msrp.

for now, this has to do.

 

[mattferg]

This article is awful FUD. GPUs don’t even mine BTC

 

[merikafyeah]

This article is awful FUD. GPUs don’t even mine BTC

There are other cryptos that can be mined by GPU. It is evidently profitable enough to justify the cost of GPU hardware otherwise GPU demand from miners would have died off within a few months, yet here we are more than a year later and only just beginning to see a decrease in demand.