From that article:
The shortage of video cards and the excessively high prices for them are due to several factors at once. On the one hand, there is a global semiconductor shortage that has hit all chip-dependent industries. On the other hand, many high-end video cards are bought by miners when they hit the market.
I understand supply/demand, and the shortage of semiconductors has resulted in increased retail prices, though I'm certain that is 100% greed, because I'm confident that staff are not being paid more, oil prices have not gone up... so operating costs should not have increased inherently.
Miners buying cards are not a valid reason for retail prices to increase... again, 100% greed and screwing customers. FE cards still selling at original rrp... are Nvidia taking a loss or just making less profit than AIB partners? I think the AIB partners are milking for current market situation as hard as they can.
NVIDIA profit margins are easy to see online from their financial reports, they tend to sit around 65%
A board partner I believe will tend to make 8-12% margin.
A distribution partner will tend to make 3-7% margin.
A reseller will tend to make 5-15% margin.
*All the above is during normal times when stock is plentiful.
It is fair to say NVIDIA's product margins are no doubt un-changed or a little lower, but it is fair to say the rest of the chain has not maintained margins and I suspect have all added a few percent, but in fairness it will be just that a few percent and will still be making less than NVIDIA, the fact is cost prices have increased considerably which cannot be swallowed when operating on low margins. NVIDIA being the number one in the chain has the biggest margin so they can soak up cost increases, but the rest of the chain operate on a smaller margin as such they cannot soak up price increases and as such they increase the price to cover both cost increases and the fact they are not operating at full capacity.
Asus themselves made a public announcement stating the prices would be going up around 25%, other partners also all put their prices up a similar amount, but never stated it publicly, then factor in supply and demand shortages and of course both distribution and resellers are making more margin, but you can hardly blame them when they operate on slim margins and are also shipping back orders at considerable losses.
Remember the board partners cannot get the supply of stock they need, so they cannot run at full production capacity, that means they either lay of staff or make other sacrifices or they somehow cover those losses, of course they pick the latter and to cover the lack of production they have to increase the cost. If they did not do that they either downsize or they risk going bump. Fact is they can increase the cost and still sell everything ten times over.
Just sucks that I get told this on my actual Birthday like???? what are the odds? I wish everyone luck in their quest for a card.