Inventory elimination is not as expected. It is reported that Nvidia and AMD graphics cards will usher in a new wave of big price cuts.
CTOnews.com, August 27 (Xinhua) according to Taiwan's Economic Daily, the graphics card market is facing an "ice storm".
Because the inventory is not as good as expected, following the sharp revision of the previous quotation, there is news in the market that graphics card suppliers will start a new wave of price cuts at the end of August, mainly Nvidia chip products, AMD chips can not escape the fate of bargaining, Asustek, MSI, gigabyte, Shaoxun, Ritai and other board manufacturers are forced to bear pressure.
Chen Jianwei, general manager of Shaoxun, said: "the demand for consumer electronics is very poor, and we don't know where the inventory is at present, but it is reported in the market that we have repeatedly issued orders, or even tripled the orders, and everyone is bargaining for goods, and customers do not dare to buy them. We can't see the dawn in the short term, and we don't expect to see the dawn in the fourth quarter."
CTOnews.com has reported that Nvidia released its latest quarterly results this week. According to the report, Nvidia Q2 revenue was $6.704 billion, down 19 per cent from a month earlier, while net profit was $656 million, down 72 per cent from a year earlier and 59 per cent from a month earlier.
As a result, Nvidia CEO Huang Renxun admitted that they made too many graphics cards, and Nvidia is selling them at reduced prices in order to sell as many RTX 3000 series graphics cards as possible before the RTX 3000 series arrives this fall.
"We find that we have excess inventory and our strategy is to sell far below the current level of sales in the market in order to give the channel a chance to correct it."
Of course, what we are talking about here is the shipping price of GPU chips, which does not necessarily mean that the price of graphics cards or game laptops in the end market will be greatly reduced soon, because the final price still depends on partners and major retail platforms.
Nvidia has repeatedly stressed that demand for games has not actually fallen despite the sudden drop in revenue, noting that GeForce sales are still up 70 per cent since before the outbreak.
