- Joined
- Mar 13, 2012
- Messages
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Could NVIDIA and AMD be price controlling the graphic card market. You probably would say that there is no way in hell that this is happening.
Well, my experience say that it is VERY POSSIBLE that it is happening right under our noses from time to time.
How do i know this, well during 1991 to 2005 i worked for a company "some where in Europe" that practiced the art of price controlling.
This company had a similar performance range of products with low, medium and high end skus and they only had one competitor in that market.
I was directly involved in brokering the price control deals and got handsome yearly bonuses for my work and to keep my pie hole shut.
When there is only two companies competing in one market the chances are big that some kind of price controlling is going on.
But should it not be easy to spot that they are doing this. No, it is not easy at all to spot price controlling since they camouflaging it well.
These deals are often not made directly by the top bosses, it is usually two friends that is medium level employees in each company that negotiate the deal verbally over a beer.
Each employee then has direct contact with there own boss and get the deal approved without involving any more employees.
This way it is almost impossible to trace since only very few people that actually know about it and there is no paper trail.
Companies often only price control there top sku's, this way they automatically keep the price up of all the medium and low level sku's.
You will still see price movements in the low and medium range but the price won't drop to much since the price controlled top sku is keeping the price up.
Also these agreements are only made for a limited time period like one or two quarters, often during the low sales season.
It is as simple as NVIDIA and AMD agreeing to not go under $500 for the GTX 680 and HD7970 say from April to September.
Even if they price control only for limited time periods from time to time they can still make shit loads of money if they choose the right time to do it.
From my experience i see a perfect time right now for NVIDIA and AMD to do this when GTX 680 comes out.
They will both have high end skus with very high profit margin so if they can delay a price war right now until September it would be extremely beneficial for both NVIDIA and AMD.
Some people may argue with me and say that both HD7990 and GTX 690 is coming so this price control thing won't work.
But yes it will work even better, it is perfect timing because then they can price the HD7990 and GTX 690 sky high because the absence of a price war and make even more money.
How can we know if they are price controlling the market this spring and sucking all of our wallets dry?
Well it is easy, if AMD do not drop the price of HD7970 and HD7950 effectively to try to nail NVIDIAs ass to the wall and bring GTX 680 down there is something fishy going on.
I urge every one that reads this to keep an eye open, if you feel that the competition has been set out of play air your opinion as much as you can i forums and what not on the internet.
Customer out cry and dissatisfaction with the pricing is the only way to pressure companies from price controlling the market.
I hope that AMD and NVIDIA compete fairly but i want to open peoples eyes to the possibility that it could happen and that it is not as impossible that many of you think.
Well, my experience say that it is VERY POSSIBLE that it is happening right under our noses from time to time.
How do i know this, well during 1991 to 2005 i worked for a company "some where in Europe" that practiced the art of price controlling.
This company had a similar performance range of products with low, medium and high end skus and they only had one competitor in that market.
I was directly involved in brokering the price control deals and got handsome yearly bonuses for my work and to keep my pie hole shut.
When there is only two companies competing in one market the chances are big that some kind of price controlling is going on.
But should it not be easy to spot that they are doing this. No, it is not easy at all to spot price controlling since they camouflaging it well.
These deals are often not made directly by the top bosses, it is usually two friends that is medium level employees in each company that negotiate the deal verbally over a beer.
Each employee then has direct contact with there own boss and get the deal approved without involving any more employees.
This way it is almost impossible to trace since only very few people that actually know about it and there is no paper trail.
Companies often only price control there top sku's, this way they automatically keep the price up of all the medium and low level sku's.
You will still see price movements in the low and medium range but the price won't drop to much since the price controlled top sku is keeping the price up.
Also these agreements are only made for a limited time period like one or two quarters, often during the low sales season.
It is as simple as NVIDIA and AMD agreeing to not go under $500 for the GTX 680 and HD7970 say from April to September.
Even if they price control only for limited time periods from time to time they can still make shit loads of money if they choose the right time to do it.
From my experience i see a perfect time right now for NVIDIA and AMD to do this when GTX 680 comes out.
They will both have high end skus with very high profit margin so if they can delay a price war right now until September it would be extremely beneficial for both NVIDIA and AMD.
Some people may argue with me and say that both HD7990 and GTX 690 is coming so this price control thing won't work.
But yes it will work even better, it is perfect timing because then they can price the HD7990 and GTX 690 sky high because the absence of a price war and make even more money.
How can we know if they are price controlling the market this spring and sucking all of our wallets dry?
Well it is easy, if AMD do not drop the price of HD7970 and HD7950 effectively to try to nail NVIDIAs ass to the wall and bring GTX 680 down there is something fishy going on.
I urge every one that reads this to keep an eye open, if you feel that the competition has been set out of play air your opinion as much as you can i forums and what not on the internet.
Customer out cry and dissatisfaction with the pricing is the only way to pressure companies from price controlling the market.
I hope that AMD and NVIDIA compete fairly but i want to open peoples eyes to the possibility that it could happen and that it is not as impossible that many of you think.