News hardware Graphics card: the fall of Bitcoin and the Covid crisis force Nvidia to review their prices
Nvidia has communicated its preliminary results for the 2nd quarter of 2022. The figures are clear: the firm’s revenues are visibly falling. But then, how could this affect the price of graphics cards?
Nvidia graphics card, towards lower prices?
With a 44% drop in Nvidia’s revenues compared to the previous quarter, we can easily say that the firm is not in its best shape.
And for good reason, the successive sequence of the long Covid crisis, and then the fall of crypto currencies have something to do with it.
First, the Covid has forced many countries to drastically slow down the frequency of international tradebut also forced factories (particularly in China and Taiwan) to sharply reduce the production of Nvidia products.
There, like a beacon in the dark, Nvidia could cling to the market of cryptocurrency miners, who could invest the high price to obtain powerful graphics cards for their farms.
But we know the story, the price of Bitcoin collapsed and other cryptocurrencies followed. To give you an idea, it is estimated that 25% of graphics card sales in June 2021 were dedicated to supplying cryptocurrency farms, i.e. a total of 700,000 GPUs (JPR Institute study).
Nvidia CEO Jensen Huang said:
Our projections for gaming-related products declined significantly throughout the quarter. As we expected, the macroeconomic conditions affecting prices continue. We will then take action with our partners to adjust prices and inventory.
Should we then understand that the drop in their sales due to the two factors mentioned above will lower prices? Maybe, but you have to understand that Nvidia can’t control the price of the sale itself. The firm can only lower the recommended price, hoping that sellers follow.
Nvidia is selling a lot less, and this price “readjustment” may well bring the price of the RTX 3000 line down, well, for a little while.
What can we expect from the RTX 4000 prices?
The RTX 4000s are planned, theoretically, for the end of 2022. We should at least discover the RTX 4090 by the end of November, the others will follow.
Given current prices, the RTX 4090 could well be placed between $1499 and $1999. For France, add VAT and you will get a fairly spicy rate.
The arrival of this new range will obviously force sellers to empty their stocks of RTX 3000 in favor of the RTX 4000, but another factor comes into play.
You should know that Nvidia is a customer of the Taiwanese company TSMC, which produces all its chips. But if you’ve followed the news a bit about this country, you know that a conflict is brewing with China. Much like the war in Ukraine has increased the cost of wheat or even paper, this other conflict could well drive up the prices of electronic components.
I know, you will tell me “again?!”, and you will be right. Many factors come into play, even geopolitics.
In the meantime, Nvidia wants to review its prices, hoping that it holds up over time.
Source : Nvidia news