2022 in GPUs: The shortage ends, but higher prices seem here to stay
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Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#2I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#3I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
Is there really a player other than Nvidia? AMD has <20% market share. Nvidia doesn’t really have a competitor for standalone cards, especially in GPGPU.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#4I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
Because it's illegal? Because it wouldn't maximize profits?
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#5I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
I have no idea why the sibling comment would be dead.
With the exponentially accelerating relevance of ML/AI and compute resources even for casual users (see DLSS and RTX), NVIDIA really doesn't have any meaningful competition on multiple axes in the GPU space.
So they don't really need to collude with anyone to fix the prices, they can just raise them.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#6I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
I have no idea why the sibling comment would be dead. With the exponentially accelerating relevance of ML/AI and compute resources even for casual users (see DLSS and RTX), NVIDIA really doesn't have any meaningful competition on multiple axes in the GPU space. So they don't really need to collude with anyone to fix the prices, they can just raise them.
>I have no idea why the sibling comment would be dead.
Taking this statement in good faith:
1. 20% is a huge fraction that shows a commercially viable alternative. Pricing shifts can shift that quickly to AMD being the preferred option for use cases, just like AMD was as the inferior but cheap CPU ca. 2015, and as Intel is in that space now.
2. Computing demand is incredibly elastic based on market conditions. For every game-changing application of parallel computing, there's a bitcoin mining rig in a place with subsidized electricity. Price hikes kill many applications at the margin, reducing the demand that needs to be met at higher prices.
3. There are well-funded new entrants to various segments of parallel computing at all times, and juggernauts in adjacent spaces will move in if encumbants leave huge spaces. Intel were the only serious CPUs, then the only serious laptop CPUs, and now they're competitive bjt bargain parts. Remember when Apple didn't make their own chips? And in another space, Qualcomm are going to lose their flagship reputation to Mediatek soon if they don't stop turning out trash Android SoCs in the next generation or two.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#7I’m trying to think of a reason why the players in this market wouldn’t utilize a shortage like this to implicitly collude and fix the prices at the higher ranges until some additional competitor forces them down.
Because it's illegal? Because it wouldn't maximize profits?
Price fixing increases profits as long as nobody undercuts you, that's the whole point
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#8I have a family friend that owns gas stations. He always says that gas prices have a tendency to "take the elevator up and the stairs down".
There doesn't have to be explicit collusion. People that have large amounts of capital know whats best for them and are very judicious when it comes to lowering prices.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#9Earlier quoted context omitted.
Because it's illegal? Because it wouldn't maximize profits?
Price fixing increases profits as long as nobody undercuts you, that's the whole point
Not always. I for one am just not upgrading at all due to costs.
It would be a lot better to make $500 profit for each of the 100k people buying your product than $1000 profit for each of the 20k buying.
Re: 2022 in GPUs: The shortage ends, but higher prices seem here to stay
#10According to the article, evga is out of the gpu business for a season at least. Evga made most of my cards over the last decade; they were the best