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
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.
29 Comments on DigiTimes: GPU Price-Cut Campaigns to Increase in Duration, Discounts, as Manufacturers Digest Unsold Inventory
Now there's a AsRock RX 590 Phantom that $240 after the 10% code. There was that rumor that RX 590 and Radeon RX 580 might "reportedly" receive New Prices of $229 and $199 respectively.
For retailers that are purchasing direct from the manufacturer at wholesale, set MSRP as mandatory. If they jack the price, they don't get GPU's. Others will gladly take the stock.
If there was actual competition, we'd see more of the GTX 1060 6Gb priced to get out of the way of supposed Nvidia offerings that beat AMD. That not what's taking place...
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