MSI to Hike Graphics Card Pricing, Expects GPU Supply to Remain Tight Throughout 2021
MSI is planning to raise prices of its graphics cards, according to a DigiTimes report, according to company chair Joseph Hsu, speaking at an investors conference on Tuesday. He stated that the company expects demand for motherboards, gaming notebooks, and graphics cards, to remain robust throughout 2021, with shipment increases to be had in the range of 30-50%. The DigiTimes report points to the likelihood of new GPU launches by NVIDIA in Q2-2021, and Intel 500-series chipset motherboards to positively impact MSI's shipments. Besides overwhelming demand, import duties and rising logistics costs are blamed for rising hardware prices.
https://www.digitimes.com/news/a20210324PD214.html
MSI to raise graphics card prices
Monica Chen, Taipei; Joseph Tsai, DIGITIMES
Wednesday 24 March 2021
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Micro-Star International (MSI) will raise its graphics card prices to reflect tight supply that may persist through the end of 2021, according to company chairman Joseph Hsu.
Hsu, at an investors conference on March 23, pointed out that end demand for motherboards, graphics cards and gaming notebooks are likely to stay robust for the rest of 2021 and each product line's shipments in 2021, after registering on-year increase between 30-50% in 2020, are expected to see double-digit growths again.
Commenting on the company's weaker-than-expected profits in the fourth quarter of 2020, Hsu said that the appreciation of Taiwan's currency, worse product mixes, delayed marine shipment schedules, increasing transportation expenses and surging marketing expenses for year-end holidays all added up to the company's overall quarterly costs.
However, MSI's profits in 2020 still managed to reach the highest-ever annual level, Hsu noted.
MSI saw net profits rise 42% on year to arrive at NT$7.96 billion (US$276.97 million) in 2020 with EPS hitting NT$9.42, up from 2019's NT$6.61. System products including notebooks, desktops and monitors contributed 43% of MSI's 2020 consolidated revenues, while components such as motherboards and graphics cards accounted for 53% and other product lines 4%.
MSI had 30% of its revenues come from North America, 37% from Europe and 33% from Asia Pacific in 2020 with North America and Europe both showing higher revenue growths than Asia Pacific.
MSI has reported consolidated revenues of NT$13.26 billion for February 2021, the highest level ever for the month, up 63.06% on year. Hsu expects revenues in March to stay in high gear and end demand in the second quarter to stay brisk.
Hsu also expects the expenses from transportation to start falling after March as the global logistics system has gradually resumed its normal state.
Nvidia's new GPUs set for releases in the second quarter and Intel's 11th generation desktop processors and Z590 chipsets to hit the market at the end of March will also boost MSI's gross margin in the first half.
MSI is planning to raise prices of its graphics cards, according to a DigiTimes report, according to company chair Joseph Hsu, speaking at an investors conference on Tuesday. He stated that the company expects demand for motherboards, gaming notebooks, and graphics cards, to remain robust throughout 2021, with shipment increases to be had in the range of 30-50%. The DigiTimes report points to the likelihood of new GPU launches by NVIDIA in Q2-2021, and Intel 500-series chipset motherboards to positively impact MSI's shipments. Besides overwhelming demand, import duties and rising logistics costs are blamed for rising hardware prices.
https://www.digitimes.com/news/a20210324PD214.html
MSI to raise graphics card prices
Monica Chen, Taipei; Joseph Tsai, DIGITIMES
Wednesday 24 March 2021
0
Toggle Dropdown
Micro-Star International (MSI) will raise its graphics card prices to reflect tight supply that may persist through the end of 2021, according to company chairman Joseph Hsu.
Hsu, at an investors conference on March 23, pointed out that end demand for motherboards, graphics cards and gaming notebooks are likely to stay robust for the rest of 2021 and each product line's shipments in 2021, after registering on-year increase between 30-50% in 2020, are expected to see double-digit growths again.
Commenting on the company's weaker-than-expected profits in the fourth quarter of 2020, Hsu said that the appreciation of Taiwan's currency, worse product mixes, delayed marine shipment schedules, increasing transportation expenses and surging marketing expenses for year-end holidays all added up to the company's overall quarterly costs.
However, MSI's profits in 2020 still managed to reach the highest-ever annual level, Hsu noted.
MSI saw net profits rise 42% on year to arrive at NT$7.96 billion (US$276.97 million) in 2020 with EPS hitting NT$9.42, up from 2019's NT$6.61. System products including notebooks, desktops and monitors contributed 43% of MSI's 2020 consolidated revenues, while components such as motherboards and graphics cards accounted for 53% and other product lines 4%.
MSI had 30% of its revenues come from North America, 37% from Europe and 33% from Asia Pacific in 2020 with North America and Europe both showing higher revenue growths than Asia Pacific.
MSI has reported consolidated revenues of NT$13.26 billion for February 2021, the highest level ever for the month, up 63.06% on year. Hsu expects revenues in March to stay in high gear and end demand in the second quarter to stay brisk.
Hsu also expects the expenses from transportation to start falling after March as the global logistics system has gradually resumed its normal state.
Nvidia's new GPUs set for releases in the second quarter and Intel's 11th generation desktop processors and Z590 chipsets to hit the market at the end of March will also boost MSI's gross margin in the first half.
