This got me thinking: what do retailers think is going to happen? When – if at all – do they think prices will stabilize? To find out, I consulted several retailers in the US and the UK. I also asked about the appearance of lite-hash-rate graphics cards on the market – GPUs that are poorer for cryptocurrency mining, if you are not familiar. It’s good to have contextual information, as graphics card prices are so closely linked to the profitability of cryptocurrency mining and because our readers have asked about it in the past. Most retailers were reluctant to respond. But Tyler Davies, head of computer components at Box.co.uk, was willing to talk to us. As one of the UK’s largest computer retailers, Box.co.uk has been battling the expanded graphics card market for the past 18 months, and Davies has been monitoring the area closely.
Have GPUs made a difference with lite fragmentation rate?
(Image: Future) First, I asked if LHR cards had an impact on demand. Davis said: “Initially yes, we saw a slight drop in demand for LHR cards compared to standard cards, but given the growing market … we soon saw the demand for LHR cards increase every month.” Many authoring sites, YouTubers and other industry commentators have concluded that graphics card prices are correlated with encryption prices. Simply put, if demand for these cards is still extremely high, then demand from gamblers may be enough to keep these prices inflated in the big retail stores – at least for a while. We saw a slight drop in demand for LHR cards compared to standard cards, but due to the increased market, we soon saw the demand for LHR cards increase every month Tyler Davies at Box.co.uk Based on Davies’s answer, I would assume that LHR cards did not have the satisfactory impact on the gaming market that Nvidia hoped for. If the demand for LHR cards is still very high, it probably means that either players are starting to devour them at higher rates or crypto-miners are thinking of smart solutions. Probably a bit of both. Interestingly, though, I also asked if we should expect more LHR cards in the future, to which Davies replied: gambling is still so prevalent. “ Crypto is not going anywhere, that’s obvious. But Box seems pretty confident that Nvidia will commit to more LHR cards in the future – most likely with increasingly sophisticated containment methods. The players hope so, anyway.
So when will GPU prices fall?
Then I asked the golden question: do you expect graphics card prices to fall and if so, when? To this, Davis replied: “I expect the GPU pricing to be re-aligned with where the market was, as the market boom is now coming to an end. By the end of April, the beginning of May, we will start to see things return to a more attractive price.” As far as I know, this is one of the first estimates given by a major retailer. It is deliberately vague, of course, to omit any figures in the ball parking lot about what might be an “attractive price”, but its proposed date will be welcome news for many. By the end of April, beginning of May, we will begin to see things return at a more attractive price. Tyler Davies at Box.co.uk And, it’s a lot earlier than I expected. Previously, my best guessed guess (admittedly I play it safe) was a 30% price increase by the end of the year. Suppose we see this prediction come true by the end of April – not by the end of 2022. If so, we are well on our way to scoring a brilliant new card without the prospect of being completely torn apart. Apart from the huge grains of salt, there is a lot here to be hopeful about.
Bottom line: when should you buy a GPU?
(Image: Future) So should you save your pennies for the end of April and then rush to get a GPU? Well, maybe. Davies’ predictions are promising, but there are reservations that could throw a key to the projects. First, we are currently in a recovery of the encryption market. After an abysmal start to the year, we now see many currencies (including Ethereum) starting to rise again. This nature of explosion and collapse makes it really difficult to predict what is going to happen next. Could we see Ethereum mining making a huge comeback before moving on to the proof of bet? If so, then graphics card prices may start to rise again. It is also worth noting that the graphics card market is generally more rosy at the moment in the UK than in the US, where prices have been kept more stubbornly. Box is a UK retailer and Davies’s comments mainly reflect the market situation on this side of the lake. As someone who follows prices in both areas, I would say that the US is moving in the right direction, but it lags far behind in terms of prices and availability to like Newegg and other big retailers. In short: it is wise to push these estimates a little further back if you live in the US.
