In short: Asus has confirmed what many in the PC industry suspected: the demand for graphics cards used for cryptocurrency mining is “disappearing”. It’s a good news. The bad news is that PC demand is also shrinking by about 10%, but gaming laptop sales will pick up next year.

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According to Reg, Asus CEO SY Hsu made the comments during the first quarter earnings announcement. He noted that the drop in demand for GPUs used for mining was primarily due to the fact that the crypto industry responded to criticism of the amount of energy consumed by mining.

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Xu is likely referring to Ethereum’s upcoming transition from its current proof-of-work model to proof-of-stake, which would theoretically eliminate the need for high-performance GPUs for token mining. Ethereum developer Tim Beiko recently confirmed that the previous switch date in June is no longer happening, although he believes it will “probably” happen within the next few months.

Xu also warned that PC sales would return to periods of slower growth in the pre-pandemic second quarter and fall 10% from the previous quarter, due in part to China’s lockdown. Meanwhile, component sales were forecast to fall by 10-15%. However, the CEO was more optimistic about next year, predicting a rise in sales of gaming laptops, which he says young people see as an important part of home entertainment technology.

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Another factor will no doubt be the collapse of the crypto market. Nearly $1 trillion has been lost from the crypto markets this week, and low crypto readings mean less profitable mining, which in turn increases GPU availability and lowers prices. Video cards already closer to their MSRP than they have been since the beginning of the crisis, and falling demand for the mining industry is pushing their prices even lower.

Another interesting part of Xu’s speech relates to the global component shortage that has plagued the industry for so long. “When it comes to integrated circuits, the supply is at an acceptable level,” he said, with the exception of power management chips. However, shortages of camera and PCB components are becoming a problem, as are congested US ports and shortages of containers and truck drivers.

“The current situation is not getting worse, but restrictions remain. So whether you’re looking at shipping or air freight rates, the cost remains high. Of course, high shipping costs create cost pressure for us. at the expected and manageable level.

Hsu’s words were confirmed this week by a report that desktop processor shipments have dwindled. biggest quarterly drop in history: thirty%.