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MSI says it is forced to raise prices for video cards due to shortages
24.03.2021 [13:34],
Alexey Razin

MSI’s executives at an investor conference released some happy-to-be-reported statistics that could at the same time upset ordinary people looking to buy a motherboard, graphics card or gaming laptop before the end of this year. The deficit in these market segments will remain, as noted in MSI, and the prices for video cards will have to be raised.

Image source: MSI

At least, MSI Chairman Joseph Hsu, as noted by DigiTimes, urged the public not to count on improving the situation with the availability of video cards until the end of this year. Last year, the volume of deliveries of video cards, motherboards and laptops increased by 30-50%, depending on the product category. According to the forecast of the company’s management, this year it will not be possible to repeat the success, but in all three areas the increase in supply volumes will be measured in double-digit percentages.

Fourth-quarter profit fell below expectations due to higher advertising, logistics and component procurement costs, which were accompanied by the strengthening of the Taiwanese currency. By the end of 2021, MSI received a record-breaking net profit of $ 277 million in its history, which turned out to be 42% more than the result of the previous year. Laptops, monitors and desktops accounted for 43% of MSI’s revenue, while graphics cards and motherboards accounted for another 53%, while other products accounted for only 4% of the company’s consolidated revenue last year.

MSI sees no reason to decrease demand for its products in Q2, but expects to see some reduction in shipping costs as the global logistics infrastructure begins to recover from the pandemic. MSI hopes for revenue growth with the introduction of new NVIDIA GPUs in the second quarter, as well as the start of shipments of motherboards based on Intel 500 series chipsets and eleventh generation Core processors (Rocket Lake-S). It will not be possible to avoid an increase in prices for video cards under the current conditions, since MSI’s costs are also growing when there are shortages.

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