Given the demand, you would think that the production of Nvidia’s RTX 3000 graphics card will increase. But the PC supplier Asus says that they are still in short supply, which requires higher prices.
Last week, Asus held an investor event, where executives expected revenue for the first quarter of the year. Surprisingly, the PC supplier predicts that component sales – which include Asus-branded RTX 3000 graphics cards – will fall by 5-10% from last year’s 4th quarter.
“On the graphics card issue at the moment is the lack of Nvidia (GPU) shipments, so there is a supply constraint situation. Because we lack supplies, prices are rising, ”said Asus co-CEO SY Hsu. “Everyone encrypts to obtain devices.”
Hsu added that it is difficult to judge when the shortage will end. But he put some of the blame on lower-than-expected returns from Nvidia’s production partner, Samsung, which has cut GPU chips to RTX 3000 cards.
“We are currently speculating that the return from the upstream supplier has not been steady,” Hsu said during the event. “It has led to such a great shortage.”
The other bad news is that Asus may increase prices even more on the company’s graphics card during the first half of the year, citing the ongoing shortage of supplies. The company earlier raised prices in January, pointing to rising costs in components, manufacturing and Trump-era tariffs coming into force again. As a result, the Asus TUF Gaming GeForce RTX 3080 now goes for $ 1,069, up from $ 729 when it was first launched.
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However, the company is just one of several GPU vendors. The others include Gigabyte, MSI, EVGA and Zotac. So the outlook for Asus may not be representative of the entire industry. Nevertheless, we have been looking at PC graphics card sales for the past six months, and the products continue to be sold out at all the major retailers. Not helping the case is where professional cryptocurrency miners have bought up the cards and taken supplies from consumers. It has given scalpers an opening to charge obscenely high prices for RTX 3000 cards on eBay.
Nvidia declined to comment. Hsu’s comments were pronounced in Chinese Mandarin and translated by this journalist into English.