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Corsair Execs Expect 'Surge' Of New PC Builds As GPU Prices Stabilize

A Corsair desktop wallpaper
(Image credit: Corsair)

Corsair, the pirate-themed RGB manufacturer from California, predicts a 'surge' of new PCs will be built as the GPU market returns to normality. This act of technomancy comes as the firm's gamer and creator peripherals segment increased its revenue 23.7% year-on-year to contribute to a 23.4% increase in net revenue, according to figures released as part of its first-quarter 2022 financial results.

Corsair AF140 Elite

(Image credit: Corsair)

"We expect that with GPU and CPU products becoming available and reasonably priced, we will see a surge of self-built gaming PC activity in 2H22 and 2023," said Corsair CEO Andy Paul in a statement that accompanied the revenue figures.

Overall net revenue for the company, which also owns Elgato and Origin PC, was at $80.7 million for the quarter, in line with predictions but representing a decrease of 28.1% compared to the same period of 2021. It does, however, still mean an increase of 23.4% compared to the pre-pandemic days of Q1 2020. Businesswire notes that the first quarter of 2021 was notable for pent-up demand and for stimulus checks being in the hands of many Americans.

Adjusted income, however, was down 83.4% to $13.3 million compared to $80.4 million in the first quarter of 2021.

While pinning much of the blame for the revenue drop on tricky global trading conditions, Corsair execs took the opportunity to prophesy that the tough times may be easing somewhat. Michael G Potter, Chief Financial Officer of Corsair, said: “We expect that Q1 2022 was the peak of pandemic-related high freight cost and promotion headwinds, and that gross margins will improve in the second half of the year.”

His confidence was echoed by the CEO, who added: “While we faced headwinds in Q1, with inflation, the continued Russia and Ukraine conflict, and high freight costs, we continue to see positive underlying growth trends in the gaming hardware sector. During Q1, GPU cards, which are the most expensive item in a gaming PC, were still at a high premium, roughly 150% of MSRP, and even with this premium we saw gaming PC build activity slightly higher than pre-pandemic and pre-GPU shortage levels.”  As we reported, some price stabilization has already been seen in the GPU market as demand wanes.

Paul later pointed out, “We grew 77% from Q1 2020 to Q1 2022, and [...] think that the peripheral market will continue to drive 20% to 25% annual growth,” and voiced an expectation that GPU cards would return to MSRP, or slightly under for discounted models, in the near future.

Ian Evenden
Ian Evenden

Ian Evenden is a UK-based news writer for Tom’s Hardware US. He’ll write about anything, but stories about Raspberry Pi and DIY robots seem to find their way to him.

  • InvalidError
    I expect PC sales to continue their steady downward trend from non-covid days now that almost everyone who needed a new computer for WFH already got one. Lots of people also upgraded their PCs using covid aid money and other emergency funding that isn't coming anymore.
    Reply
  • Phaaze88
    Executives: usually disconnected from reality.
    Reply
  • bpdski
    "Stabilize" is a relative term. Even though prices are coming back near MSRP, the MSRP price of graphics cards is still grossly inflated. Six or so years ago the GTX 960, 970 and 980 launched at $199, $329, $549 respectively. New 3060, 3070 and 3080s are double that at least. Hopefully Intel getting in the game will help drive MSRPs back down where they should be.
    Reply
  • peachpuff
    bpdski said:
    "Stabilize" is a relative term. Even though prices are coming back near MSRP, the MSRP price of graphics cards is still grossly inflated.
    The 2nd hand market is even worse, i see those gtx980's for $2-300
    Reply
  • sizzling
    Do they actually believe this or are they just trying to convince the shareholders and stock market?

    Given what’s happening to most 1st world economies at the moment I would expect discretionary spending to significantly reduce. There also seemed to be a lot of people on here that upgraded the rest of their system while waiting for gpu prices to come down so. If that reflects any significant % of builders then that’s a portion that won’t be upgrading the rest of their system.
    Reply
  • peachpuff
    sizzling said:
    Do they actually believe this or are they just trying to convince the shareholders and stock market?
    Its like the cnn+ projections, we'll make a billion dollars in 8 years... but shuts down a month after launch 🙄

    Reply
  • bpdski
    Yep, I'm one of those people that has upgraded everything except their GPU. I'm using a 980 Ti that a friend gave me until prices (hopefully) come back down to where they should be. Let's hope having some competition from Intel will break the AMD/Nvidia monopoly.
    Reply
  • digitalgriffin
    Admin said:
    Peripherals firm predicts outbreak of PC building even as financial report makes for sobering reading

    Corsair Execs Expect 'Surge' Of New PC Builds As GPU Prices Stabilize : Read more

    Translates as "We aren't selling PSU's and fancy over priced RGB stuff because no one can afford to build a new PC. But not GPUs are affordable we think you should buy our stock again as we will be selling a lot more overpriced RGB stuff."
    Things I bought Corsair:
    Keyboards (I like logitechs better)
    Mice (Again I like logitech's better, except the corsair M65 Pro mouse for sniping in FPS)
    PSUs

    EVGA, and Rosewill keyboards mostly match Corsair's offerings for less money.

    That said I do think the PSU line starting with the CX-M and CX and up are worth the price.
    Reply