Wednesday, March 6th 2019

DigiTimes: GPU Price-Cut Campaigns to Increase in Duration, Discounts, as Manufacturers Digest Unsold Inventory

According to DigiTimes, NVIDIA and AMD partners are doing their best to digest unsold graphics card inventory via promotions and discounts. The idea here is that they can achieve increased amounts of revenue and move a lot of the graphics card stock they accumulated following (and counting on) the crypto craze. This move will certainly affect their bottom line when it comes to profits, but that's just what these companies have to do. Hardware sold at a tiny profit is always better than that which stays in the warehouse simply deprecating, and these companies know it best.

DigiTimes cites the example of AMD-partner TUL corporation which manages the PowerColor brand, saying that they achieved, via promotions, an increase of 115% in revenues on January (over their December values). This increase in revenue still compares negatively YoY, where it's still 85.7% lower compared to January 2018. And despite the increase revenue, profits declined to the red: the company had net losses of NT$10.31 million in January 2019 and EPS of negative NT$0.31. Some hard times could be coming for AIB partners, who will have to bite the bullet on pricing to move their stockpiles of older generation graphics cards.
Source: DigiTimes
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29 Comments on DigiTimes: GPU Price-Cut Campaigns to Increase in Duration, Discounts, as Manufacturers Digest Unsold Inventory

#1
Vayra86
About damn time they see the light.
Posted on Reply
#2
krykry
Hardware sold at a tiny profit is always better than that which stays in the warehouse simply deprecating, and these companies know it best.
Hardware sold at 50% of price is still better than unsold hardware. Unsold hardware is pure loss.
Posted on Reply
#3
dorsetknob
"YOUR RMA REQUEST IS CON-REFUSED"
The idea here is that they can achieve increased amounts of revenue and move a lot of the graphics card stock they accumulated following (and counting on) the crypto craze. This move will certainly affect their bottom line when it comes to profits, but that's just what these companies have to do. Hardware sold at a tiny profit is always
Can you see/smell the Beancounter Blood on the Corporate Walls.
Posted on Reply
#4
windwhirl
Raevenlord, post: 4007145, member: 166527"
DigiTimes cites the example of MAD-partner TUL corporation
MAD? Perhaps, but maybe you mean AMD.
Posted on Reply
#5
xkm1948
what price cut? Im still seeing RX590 around $250. 590 at current market should not be sold more than $200.
Posted on Reply
#6
Animalpak
krykry, post: 4007151, member: 180882"
Hardware sold at 50% of price is still better than unsold hardware. Unsold hardware is pure loss.
Hope they know what you said here, that will be amazing but seems most of the time they don g... a f...
Posted on Reply
#7
Imsochobo
xkm1948, post: 4007233, member: 50521"
what price cut? Im still seeing RX590 around $250. 590 at current market should not be sold more than $200.
220 is acceptable.
Posted on Reply
#8
Bones
xkm1948, post: 4007233, member: 50521"
what price cut? Im still seeing RX590 around $250. 590 at current market should not be sold more than $200.
The retailers would be the ones mostly responsible for that.
They will keep the prices as high as possible for as long as possible, once demand (Sales) falls off THEN they will drop prices - Just not as much as the makers had to.

Unless you can somehow buy direct from the maker you won't see alot of price drop, at least not in the short term.
Posted on Reply
#9
Kinestron
I'm not seeing it either. I don't know where everyone else shops but it is usually Newegg or Amazon for me(they are usually close in price) and looking at Newegg, only a couple RX 590 are under the MSRP of $279. The rest are at or above MSRP.
Posted on Reply
#10
Manu_PT
Too late, just bought a gtx 1080ti msi gaming x trio for 490€ 2 days ago. Used for 1 year aswell. Not interested on the current market prices for brand new GPUs
Posted on Reply
#11
DeathtoGnomes
if anything is goofy, its fkn Newegg, their prices have went up consistently and only in the last week have they dropped on vega64's.
Posted on Reply
#12
Grim_Reaper
xkm1948, post: 4007233, member: 50521"
what price cut? Im still seeing RX590 around $250. 590 at current market should not be sold more than $200.
250? lol.
Sapphire RX590 Nitro+ SE here for $382,45
Sapphire Nitro+ RX570 $200-550
Sapphire Radeon RX 580 4GD5 NITRO+ $238-287
[SIZE=4]Sapphire
RX Vega56 NITRO+ $596-789
MSI GeForce RTX 2080 Ti VENTUS 11G- $1202-1438
ASUS ROG-STRIX-GTX1080TI-11G-GAMING- $1005
ASUS ROG-STRIX-RTX2080TI-O11G-GAMING $1421-1557[/SIZE]

Heck. At Amazon same nitro+ RX590 SE starts from $337.94 In any case, I honestly agree. 200$ is top for RX590, or it's completely suicidal price comparing to GTX1660 or etc.

I dunno where ppl see such low prices. Probably it's only for "First grade nations" only.
Posted on Reply
#13
John Naylor
Well here in US, the 90 day reduced tariff extension will end on March 30. I expect they will want to clear inventories to allow for huge restocks if tariff is to jump to 25% within 25 days.

TUL is located in Taiwan and handles worldwide marketing; therefore I expect what they are doing is not being universally applied. The problem we have here in US is that if you are checking your favorite sites often enough, they still having trouble keeping certain cards in stock. And if there' one thing that trumps stale inventory, its lack of inventory. As long as supply has difficulty keeping up with demand, prices are going no where. Some price comparisons are just silly from a value standpoint, but supply and demand has a huge effect.

MSI 2080 Ti Ventus is $1502 on newegg despite being a "weaker" card.
MSI 2080 Ti Gaming X Trio is $1349 on newegg (the highet performer in TPU testing)
MSI 2080 Ti Seahawk is $1379 on newegg (that's an EK water block preinstalled w/ warranty for $30)

MSI 2080 Seahawk is $1799 on newegg (that's $400 more than the Ti w/ same block)

The 2060 and 2070 have dropped to "reasonable levels" but with no real competition, above that the 2080 Ti isn't budging and the 2080 is now only dropping to reasonable levels.

MSI Ventus 2080 - $699
MSI Duke 2080 - $769
MSI Gaming X Trio 2080 - $799

Knock off the 10% tariffs and those prices don't look all that bad.

Speaking of which, with those tariff announcements, many companies indicated that they would be moving production facilities out of mainland China to Taiwan and other places. I haven't heard anything with regard to another extension of the 90 day 10% tariiff which I expect ends march 31st. ... has anyone heard anything with regard to either topic ?

As for the 2080 Ti, it would appear that sales are still running neck and neck with supplies. Have to wonder how much interest there is in improving yields when most fabs are facing not having their contracts renewed as production gets shifted to other countries.
Posted on Reply
#14
softreaper
Grim_Reaper, post: 4007317, member: 84967"
250? lol.
Sapphire RX590 Nitro+ SE here for $382,45
Sapphire Nitro+ RX570 $200-550
Sapphire Radeon RX 580 4GD5 NITRO+ $238-287
[SIZE=4]Sapphire
RX Vega56 NITRO+ $596-789
MSI GeForce RTX 2080 Ti VENTUS 11G- $1202-1438
ASUS ROG-STRIX-GTX1080TI-11G-GAMING- $1005
ASUS ROG-STRIX-RTX2080TI-O11G-GAMING $1421-1557[/SIZE]

Heck. At Amazon same nitro+ RX590 SE starts from $337.94 In any case, I honestly agree. 200$ is top for RX590, or it's completely suicidal price comparing to GTX1660 or etc.

I dunno where ppl see such low prices. Probably it's only for "First grade nations" only.
in France:

Lowest Price sold by amazon (most of the time the cheaper): 266.99€ => 302.03$ inc VAT For XFX Fatboy
LDLC (not the cheaper but a good seller most of the time): 279.95€ => 316,69$ inc VAT for Sapphire Nitro+
Rueducommerce (another quality french store): 274.90€ => 310,98$ inc VAT for Sapphire Nitro+
Cdiscount (wort support nearby, but some of the best prices): 259.99€ => 294,11$ inc VAT for Sapphire Nitro+

If you want cheaper cards, stop looking at strix, you pay way more for RGB and "design"

when the cheapest 1660 Ti is at 300€/339,37$ there is no real interest of taking an RX at those prices

what do you call "first grade nations"? i think it's not a matter of nation ...
Posted on Reply
#15
moproblems99
John Naylor, post: 4007339, member: 156078"
MSI 2080 Ti Ventus is $1502 on newegg despite being a "weaker" card.
MSI 2080 Ti Gaming X Trio is $1349 on newegg (the highet performer in TPU testing)
MSI 2080 Ti Seahawk is $1379 on newegg (that's an EK water block preinstalled w/ warranty for $30)

MSI 2080 Seahawk is $1799 on newegg (that's $400 more than the Ti w/ same block)

The 2060 and 2070 have dropped to "reasonable levels" but with no real competition, above that the 2080 Ti isn't budging and the 2080 is now only dropping to reasonable levels.

MSI Ventus 2080 - $699
MSI Duke 2080 - $769
MSI Gaming X Trio 2080 - $799
I wouldn't call them reasonable until a good $100 price cut or so for $2080 and below and about an $500 to $700 for Ti's. Until then, they are just 'reasonable'. Quote, quote.
Posted on Reply
#16
Khonjel
And here in my bum-fuck country, retailers will never drop price. But they're quick enough to increase price when it suits them.
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#17
moproblems99
Khonjel, post: 4007391, member: 154148"
And here in my bum-fuck country, retailers will never drop price.
Don't feel special, it's like that in most places.
Posted on Reply
#18
jaggerwild
No offense to anybody here but retailers(can rot in hell!!!!) for all i care, selling a high end GPU for $1500.00 us from $799 for the last HIGH END (1080Ti)? Are you kidding me, I will sell off everything and go console if prices remain high. I don't care, I have a vanilla 1080 from EVGA i got for $400.00 brand new when this all went down. Only thing I would like to have right now is a decent mouse pad with good edges that will not fray.
Ill game for years on my X99 5930K,870 EVO M.2, EVGA 1080 FTW, and my X79 build with 2 Asus DC2 OC 780Ti, 3930K 8700 EVO M.2
Posted on Reply
#19
hat
Enthusiast
Prices were driven up due to a number of factors. Mining was one of them. Retailers and manufacturers are there to make as much money as possible. They're not going to be nice and sell you a card for any less than they can. So, if they think they can move 2080Ti's for $1500, they will, even if they can still profit at $1000 or less.

The best way to decrease prices is to simply not buy. If enough people aren't buying, they'll have to drop prices until people start buying. Along with that, while you're not buying, you can hope some competition comes in. If AMD can release a graphics card that matches or beats nVidia's offerings, then you might see a nice price war.

Fortunately, while many complain that Pascal cards were around for so long without a better performing successor released (until Turing came along, which a lot of people are disappointed with)... that also means Pascal cards are still damn good performers. It's not like there's many people with high end Pascal cards too terribly upset by the market right now. Maybe we would upgrade if we could, but combine high prices with disappointing products and we'll just hang on to our glorious Pascal cards for a while longer. They still do pretty damn good.
Posted on Reply
#20
R0H1T
Vayra86, post: 4007148, member: 152404"
About damn time they see the light.
I dunno, I still don't see any major price cuts by retailers or even resellers! This probably applies only to the US & a handful of other countries :shadedshu:
Posted on Reply
#21
Caring1
Resellers and retailers just see price cuts in inventory as increased profits, the consumer rarely sees them
Posted on Reply
#22
Khonjel
moproblems99, post: 4007405, member: 155919"
Don't feel special, it's like that in most places.
NO! I will feel special as I damn please as long as I live in this special country, mister/miss.

No free games like other countries.
40% or more pricier. For example if something costs $100 it'll convert to 11,000 of our shitty currency. While our currency actually converts to 8,400. At least intel CPUs and RAM go for a modest 8,700-9,000 for $100.
No big sale event either. You buy any time of the year, same price.
Posted on Reply
#23
Lorec
Khonjel, post: 4007447, member: 154148"
NO! I will feel special as I damn please as long as I live in this special country, mister/miss.

No free games like other countries.
40% or more pricier. For example if something costs $100 it'll convert to 11,000 of our shitty currency. While our currency actually converts to 8,400. At least intel CPUs and RAM go for a modest 8,700-9,000 for $100.
No big sale event either. You buy any time of the year, same price.
I connect with You in pain my friend lol the main way to obtain parts is web and prices there are ridiculous.
Heck, a goddamn 7970 is considered a gaming card from what I saw and costs good couple hundred...
Not one of my friends that lives there have a decent rig.
Usually phenom/intel 2nd gen, fermi class gpus.
Scary.
Posted on Reply
#24
lexluthermiester
dorsetknob, post: 4007156, member: 8331"
Can you see/smell the Beancounter Blood on the Corporate Walls.
That paints an amusing mental image. And yes, i think we all can...
Posted on Reply
#25
kings
Taking a few sporadic deals, 2~3 years later we're still paying the MSRP for most models, which is ridiculous.
Posted on Reply
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