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

#26
Casecutter
xkm1948what price cut? Im still seeing RX590 around $250. 590 at current market should not be sold more than $200
Harp on the RX590... sure but at least lump the GTX 1060 6Gb in there to. PC-Part's Picker today has one GTX 1060 6Gb; Zotac for $210. The next eight are $255-300... out of like 20 that are under $350... while not counting a bunch still above that.

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.
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#27
Franzen4Real
hatPrices 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.
Totally agree with you here. But for the bold portion I think we would only see an MSRP price war, and in actual retail we would just see both companies cards getting price jacked like we did during the crypto bubble. In my opinion, the only way GPU prices will ever be controlled is by both AMD and nVidia mandating an MSRP price. This is exactly how the consoles work (at least in the U.S.). In the middle of say, Christmas season, you don't walk into a Best Buy and see Xbox pr PS marked up to $800. They are sold out at msrp even if the supply is so low that they are near impossible to find. Sony/Microsoft/Nintendo don't allow stores to jack the price. AMD and nVidia do not make a single penny more on their GPU's if Newegg sells them at msrp or $300 above, as they have already received their wholesale price payment. It's purely the retailers profiting and all it is doing is hurting customer pockets, and potentially the manufacturers brand name. Of the 3 party's involved (manufacturer/customer/retailer), the retailers are really the only ones that are not truly required here since manufacturers can and do have their own online store presence, yet they are the only ones making out on the whole thing. I have no clue why either nVidia or AMD are ok with this.

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.
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#28
Casecutter
When I can get a XFX GTS Black Edition RX 580 8GB OC+ 1425MHz (RX-580P8DBD6) with Custom Backplate for $200 but Egg isn't showing the Gaming Bundle. Now they show it's sold By XFX Official Store so I might call XFX and bitch to see if they'll give it up.

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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