Strong demand for high-end graphics cards especially from China has caused some of Nvidia's graphics cards to suffer from shortages, which has boosted their average pricing by 15%, benefiting Nvidia, Colorful, Galaxy and Asustek Computer's profitability, according to sources from the upstream supply chain.
China is the largest graphics card market worldwide and its graphics card shipments have seen decreases at a much slower pace than expected in 2015 because of increasing demand from the gaming market and Internet cafes.
The largest graphics card player worldwide Palit Microsystems, which also runs a graphics card sub-brand Galaxy, is expected to ship over eight million graphics cards in 2015 with Asustek Computer coming in second with 4.6-4.8 million units. Gigabyte Technology and Micro-Star International (MSI) are expected to ship 3.2 million units each.
As for the China market, Colorful will be the largest graphics card vendor, followed by Galaxy and Asustek.
Although most graphics card players have not seen shipment growths in 2015, their revenues are expected to grow at least 20% because of price increases. Colorful, Asustek and Palit are all performing better than 2014 in terms of profits in 2015.
MSI is expected to see a 10% shipment growth on year in 2015, while Gigabyte will see a 10% shipment drop with a flat performance in profit.