Asus CEO S.Y. Hsu made the comments during the company''s Q1 earnings call. He noted that the decrease in demand for GPUs used for mining was primarily due to the crypto industry responding to criticism of the amount of energy mining consumed.
Ethereum''s upcoming transition from its current proof-of-work strategy to proof-of-stake, which in theory will put an end to the requirement for high-end GPUs to mine the tokens. Despite the fact that the previous switch date of June will no longer happen, it would "likely" occur within the following months, according to Hsu.
It will not be June, but in the few months following. There is no exact date yet, but we''re certain to start the final chapter of PoW on Ethereum.
PC sales will return to the pre-Covid days of slowing growth in Q2 and decrease 10% Quarter-on-Quarter, partly because of China lockdowns. Component sales, however, were expected to decrease between 10% and 15%. Hsu also warned that younger people consider it to be an important part of home entertainment technology.
Another factor will be the crashing crypto market. This week, around $1 trillion has been wiped from the cryptocurrency markets, and low crypto values boost mining profitability, which increases GPU availability and lowers costs. Graphics cards are already closer to their MSRP than they have ever been since the crisis started, and declining mining demand is causing their prices to fall even further.
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Another interesting part of Hsu''s discussion focused on global component shortages that have plagued the industry for so long. "When it comes to integrated circuits, the supply is in a manageable level," he said. Shortages of camera components and printed circuit boards are proving to be an issue, however, as are port congestion and shortages of containers and truck drivers.
"The actual situation isn''t changing, but the constraints remain. So, whether you are looking at shipping rates or air freight, the cost remains high. Of course, high shipping costs is causing cost pressure for us. But it''s all in the expected and manageable level."
This week''s report said that mobile processing revenues have dropped for the most time: 30%.