A new analysis of the graphics card market in China suggests that in December last year the shipment volume of accelerators in the Celestial Empire fell by 19% compared to November. The most noticeable drop was observed at the company Gigabyte, writes a Chinese resource. BoBanTang.
According to the table below BoBanTang, the local company Colorful is the largest of the eight desktop graphics accelerator suppliers in China. At the end of the year, however, it also recorded a significant decline in delivery volumes.
The second largest supplier of graphics cards in China is the Taiwanese ASUS. It also saw shipments drop in December, but not as sharply as Gigabyte and MSI. The first shipped 40% fewer graphics accelerators to the Chinese market in December than a month earlier.
As explained in the original Chinese source article, several factors can be the cause of such market volatility. These include new outbreaks of COVID-19 that could affect both GPU production and supply, as well as suppliers’ desire to hold stocks of graphics cards to sell at higher prices during the holiday season. Remember that in China the New Year is traditionally celebrated in early February.
It’s also speculated that other factors are prompting some Taiwanese manufacturers, such as Gigabyte and MSI, to push more video card shipments into the international market, where they can make more money from sales. In addition, the video card market in China may be affected by the ban on crypto mining and changes in the country’s legislation related to tightening restrictions on the time young people can spend playing video games.