MSI has unveiled that it is planning to increase the GPU prices for both of its AMD and Nvidia range of graphics cards. And the reason given by the company is the low supply of GPUs from both NVIDIA and AMD. Ever since the release of both RTX 3000 and Radeon RX 6000 series graphics card, both have seen extremely low stocks.
In its latest Investor meeting, MSI chairman Joseph Hsu reported the company’s earning as well as expectations for the coming year. MSI expects the demand for motherboards, graphics cards, and gaming notebooks to continue to increase by double digits.
In 2020, MSI saw the sales increase by 30 to 50% compared to 2019. However, profits in the 4th quarter of 2020 were weaker than expected, but profits for the year were the highest they have ever been. The shortages of graphics cards have caused price hikes since 53% of MSI’s revenue is from GPU sales.
Digitimes reported the following statement from Joseph Hsu on the coming price hike for graphics cards.
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 an on-year increase between 30-50% in 2020, are expected to see double-digit growths again.
So, the main reasoning for the increase in the price of graphics cards is the rise of demand for graphics cards as well as limited GPU supply from the manufacturing companies. MSI also plans to release the newest cards from Nvidia and motherboards for the 11th gen Rocket Lake processors from Intel in Q2 of 2021.
We will have to wait and see how much price hike MSI cards receive and how long they will be staying.
