PC builders and gamers should brace for tighter budgets and longer waits in the second half of 2026. PC Partner Group, a major graphics card manufacturer, warned that component shortages are worsening across the industry. This trend threatens to drive up prices for entry-level and budget graphics cards more than any other segment. Buyers looking to assemble a system this year will likely face higher costs and limited stock availability.
Component shortages drive up prices for entry-level graphics cards
PC Partner Group reported strong financial results for the first half of 2026 despite the difficult market conditions. The company posted a net profit of HK$545.5 million, which doubled compared to the previous year. Total revenue reached HK$6.45 billion, representing a modest 1.5% increase. These figures highlight how rising average selling prices have helped manufacturers maintain profitability even as sales volumes declined.
- Net Profit (H1 2026): HK$545.5 million ($69.52 million)
- Revenue (H1 2026): HK$6.45 billion ($820 million)
- ASP Increase (H1 2026): 10.7% year over year
The primary driver behind these price increases is a sharp rise in the cost of graphics memory chips. PC Partner Group stated that these rising component costs will substantially increase the manufacturing expenses for GPUs. Supply constraints are also affecting CPUs, memory, and other essential PC components, leading to significantly longer lead times. The company noted that these supply issues are driving sharp increases in component costs and slowing consumer demand.
While PC Partner manufactures graphics cards based on Nvidia's GPUs, the company did not specify the exact cause of the current shortage. Media reports have linked the supply constraints for advanced chips and memory to growing AI data center demand. This connection suggests that enterprise demand is competing with consumer hardware for limited manufacturing capacity. The lack of a specific attribution from the manufacturer leaves the exact source of the bottleneck open to interpretation.
PC Partner Group's financial performance demonstrates that higher prices are currently sustaining the industry. The company's ability to double its net profit despite lower sales volumes indicates a shift toward higher-margin products. This trend is expected to continue into the second half of 2026 as supply constraints persist. Consumers will likely see these cost increases passed down through retail prices for graphics cards.
Source: NotebookCheck
