In my local market, the slowing down of the crypto fad is showing. Used GTX 1080 GPUs are no longer hawked at $800 and there are various ASICS generally available. Even new retail cards are coming down in price, but are still way too high for technology that’s been available for a couple years now. Unfortunately, I believe that Nvidia is going to keep the prices high so that they can position the upcoming 11 series at the $700 mark just because they can.
Nvidia Appears To Have A GPU Inventory Problem
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Re: Nvidia Appears To Have A GPU Inventory Problem
#12Doesn't this only happen when huge preorder(s) get cancelled? Any big players in bitcoin mining bankrupted lately?
Re: Nvidia Appears To Have A GPU Inventory Problem
#13So bitcoin miners aren't the reason for the insane GPU prices then?
Using GPUs to mine Bitcoin is a bad idea. That's why most serious Bitcoin miners would buy ASICs.
But Ethereum is much more amenable to GPU-mining so I presume NVIDIA and AMD got a lot of love (and $$$$) from this mining community.
Re: Nvidia Appears To Have A GPU Inventory Problem
#14Are they doing what de beers do with diamonds, hoarding them to create fake scarcity?
Re: Nvidia Appears To Have A GPU Inventory Problem
#15Seriously? I find this hard to believe - prices of GPUs have been ridiculously high (much higher than at launch) for so long precisely because the supply was so short. Pretty much every supplier I've seen would either sell out any high-end Nvidia GPUs almost as soon as they got them or would ramp up the price more and more. This is either an incorrect rumour or some very weird shitty strategy by Nvidia that backfired…
Prices went up because of mining, and now that the craze is over price stay up because companies want to pocket the extra money. It's as simple as that.
Re: Nvidia Appears To Have A GPU Inventory Problem
#16Seriously? I find this hard to believe - prices of GPUs have been ridiculously high (much higher than at launch) for so long precisely because the supply was so short. Pretty much every supplier I've seen would either sell out any high-end Nvidia GPUs almost as soon as they got them or would ramp up the price more and more. This is either an incorrect rumour or some very weird shitty strategy by Nvidia that backfired…
NVidia probably liked the high prices (because of miner demand), produced accordingly and kept the price stable. These high prices probably ensure a nice profit margin for a longer time then normal during this stage of the product's life cycle. However a side effect might be somewhat slower sales then they planned (for example because miners will buy anyway but gamers are waiting for the nextgen cards). That means they're left with a lot of stock, which sells, but not at their normal rate. NVidia normally has a very predictable product life cycle but I think they are now in something that is (to them) uncharted territory.
This could lead to stuff like their accountants saying: "You've got an awful lot of stock which isn't selling as fast as you thought. We think that's a risk". Which might compel them to set money aside for stock risks.
Re: Nvidia Appears To Have A GPU Inventory Problem
#17Re: Nvidia Appears To Have A GPU Inventory Problem
#18Seriously? I find this hard to believe - prices of GPUs have been ridiculously high (much higher than at launch) for so long precisely because the supply was so short. Pretty much every supplier I've seen would either sell out any high-end Nvidia GPUs almost as soon as they got them or would ramp up the price more and more. This is either an incorrect rumour or some very weird shitty strategy by Nvidia that backfired…
Yes that was true six months ago it is not any more.
Re: Nvidia Appears To Have A GPU Inventory Problem
#19Are they doing what de beers do with diamonds, hoarding them to create fake scarcity?
Diamonds are forever, but Nvidia GPUs are for 24 months.
Re: Nvidia Appears To Have A GPU Inventory Problem
#20Seriously? I find this hard to believe - prices of GPUs have been ridiculously high (much higher than at launch) for so long precisely because the supply was so short. Pretty much every supplier I've seen would either sell out any high-end Nvidia GPUs almost as soon as they got them or would ramp up the price more and more. This is either an incorrect rumour or some very weird shitty strategy by Nvidia that backfired…
Quote from the last earnings call:
"[...] my sense is that there's a fair amount of pent-up demand still. Fortnite is still growing in popularity. PUBG is doing great. And then we've got some amazing titles coming out. And so my sense is that the overall gaming market is just really, is super healthy. And our job is to make sure that we work as hard as we can to get supply out into the marketplace. And hopefully, by doing that, the pricing will normalize and the gamers can buy into their favorite graphics card at a price that we hope they can get it at."
- Jen-Hsun Huang, Nvidea CEO