Corsair expects losses of up to $11 million this quarter as the economy falters
Corsair's set to lose a lot of money this quarter
Published: 25th July 2022 | Source: TechSpot |
Corsair expects the second half of this year to see stronger demand for their products
2022 has not been a good year for Corsair. Like many companies, macroeconomic pressures have had a major impact on Corsair's bottom line, with the company expecting $10 million to $11 million in losses this quarter.
With pressures on the economy intensifying, Corsair's sales have not been as large as expected. Consumer spending is down, and people tend to invest less into gaming products when the economy is bad. Rising inflation and the war in Ukraine are all having an impact, and many consumers are currently holding off on non-essential purchases. That is not good news for Corsair.
Poor sales in H1 2022 have caused Corsair inventory to build up at both retailers and in Corsair's warehouses, leading to retailers delaying orders while excess stock is cleared. Thankfully, Corsair expects better sales in the second half of 2022, and the company has been seeing rising sales in recent weeks due to the increased availability of graphics cards. People are starting to upgrade their gaming PCs again, and that is a positive thing for Corsair.
Corsair expects H2 2022 to be better
Corsair currently expects strong sales in the second half of this year due to several factors. For starters, new CPUs and GPUs from Intel, AMD, and Nvidia are expected to prompt many consumers to upgrade their systems. As a manufacturer of SSDs, DRAM, power supplies, Cooling products and more, Corsair expects new product launched to increase their sales in Q2 and Q3.
With both Intel's Raptor Lake and AMD's Zen 4 processors supporting DDR5 memory, Corsair expects strong DDR5 sales over the next few quarters. Beyond that, Corsair expects strong sales for their cases, power supplies, cooling products and accessories and PC builders construct new systems.
While Corsair expects losses in Q2 2022, the company expects to see overall sales growth in 2022, implying that the company expects strong sales for the next few quarters.