The launch of NVIDIA GeForce RTX 3060 & the AMD Radeon RX 6700 XT has created an artificial price hike in an already scarce graphics card supply in the consumer market. The reason behind all of this is the extremely low stock. As a result, MSI has decided to increase the prices of its graphics cards.
Digi time reported the latest investors meeting where MSI’s chairman, Joseph Hsu, revealed the company’s earnings and expectations for the coming years. MSI expects the demand for its motherboards, graphics cards, and gaming notebooks will continue to increase by double digits. Compared to the previous year, the company also witnessed a sales increase of 30 to 50% in 2020. Despite the high profits, the Q4 2020 had less income than expected which was due to the fact that shortage of graphic cards has increased its prices, and 53% of MSI’s comes from sales of Graphic cards.
An increase in global demand is indicated by the expected double-digit growth of motherboards, graphics cards, and gaming notebooks; unfortunately, NVIDIA and AMD have failed to catch up with the demand. MSI has plans to release the newest cards from Nvidia and motherboards for the 11th gen Rocket Lake processors from Intel in Q2 2021.
The main cause of the shortage is the reduced shipments from AMD and NVIDIA, and for a company to achieve its financial targets, a price hike is mandatory. There are only a few AIB cards that are being sold near the MSRP but are mostly out of stock. Simultaneously, consumers have new competitors, miners, and scalpers.