Jenson wants higher margins for his GPU's, here is how he's going to do it.

[Calin Banc]

Just had a quick glance at the store from which I've bought in the past: RTX3080 "10GB is not enough version" goes for around 900 euros. 6800xt "16GB rasterization is kind, plenty vRAM" version goes for around 1400 euros. Yup, nVIDIA bad, AMD good. People are just falling for the marketing here, clearly not buying the supperior (in price) AMD product.
/s

 

[gpuerrilla]

I think its the store which you bought in the past from that needs head examined.

 

[Calin Banc]

I think its the store which you bought in the past from that needs head examined.

neah, AMD were more expensive during these times compared to nVIDIA.

Funny enough, other computer parts were rather stable in price, only GPUs saw a jump since they were printing money.


LE: What would mean if AMD were charging 25% less:

For a $500 card, 25% less would be $375.
For their 46% gross margin (meaning $230 profit), would mean the card costs about $270 to produce, ship, sell, etc.

375-270 would mean a profit of $105/card or 21% gross margin for that $500 card. They're still making plenty of money here and will recoup that "loss" by increased sells.

Sure, nVIDIA could lower the price too, but at least it will give AMD momentum and initiative on the market, making it truly the "good guy", having something to compete against nVIDIA and earn that market share. Other than that they're just making easy money, like nVIDIA does, when the demand is high enough. They are not any better. So if this is nVIDIA's plan, what is AMD's plan to still make silly money?

 

[DeliciousStorage]

For their 46% gross margin (meaning $230 profit), would mean the card costs about $270 to produce, ship, sell, etc.

375-270 would mean a profit of $105/card or 21% gross margin for that $500 card. They're still making plenty of money here and will recoup that "loss" by increased sells.

I don't think it works like that, their 46% gross margin is the average for all cards, but obviously a $1000 card will have a much higher margin than a $500 card.

 

[Calin Banc]

I don't think it works like that, their 46% gross margin is the average for all cards, but obviously a $1000 card will have a much higher margin than a $500 card.

Well, at $500 it should be in the middle. The idea is to make money by volume if you care about your customers.

 

[DeliciousStorage]

Well, at $500 it should be in the middle. The idea is to make money by volume if you care about your customers.

IIRC overclockers said their best selling card was the 3080 10GB, it would have been around £750/$800 at the time. I doubt a $500 card would have a 46% margin.

 

[CuriousTomCat]

They also failed to provide a UK reseller the whole of the gen release.

You mean like Nvidia selling FE cards at a loss? Yes AMD made a huge mistake by not doing the same.

 

[CuriousTomCat]

From your own post here nVIDIA is reducing its Gross Margin: https://forums.overclockers.co.uk/t...-revenue-losses.18958357/page-2#post-35826032

AMD Gross margin: 46%
nVIDIA Gross margin: 43.5%

I would say AMD are the greedy ones .

Maybe both can lower that gross margin.

The lower the market share, the higher the margin needs to be to breakeven. So this doesn't surprise me.

 

[TNA]

ATi did it back with the 4870, it is possible.
The 4890 was the cherry on top of the pie, ATi did it with the HD 5870 too.

The 4870 is up there with one of my favourite cards. As I recall it was a hell of a lot faster than the super popular and expensive 8800 GTX and it cost around £200 at launch due to the very strong pound at the time. It was just awesome

 

[Frenzy]

The 4870 is up there with one of my favourite cards. As I recall it was a hell of a lot faster than the super popular and expensive 8800 GTX and it cost around £200 at launch due to the very strong pound at the time. It was just awesome

I had less of a clue back then, I had an MSI 8800ultra (still do), remember going to a computer fair to buy it I remember being so annoyed that morrowind water tanked my fps.

 

[Trick]

Iv

The 4870 is up there with one of my favourite cards. As I recall it was a hell of a lot faster than the super popular and expensive 8800 GTX and it cost around £200 at launch due to the very strong pound at the time. It was just awesome

I've still got an Athlon 64 X2 system running an 8800GTX Great card.

 

[TNA]

Iv

I've still got an Athlon 64 X2 system running an 8800GTX Great card.

I had the 8800 GTS, would OC like a beast. But the 4870 was a huge improvement over it. I actually ended up using AMD cards exclusively for years on end after that apart from having a GTX 670 for a while for Flight Simulator.

The reason I was using AMD only for so long was they were always very competitive. Even if they were not the fastest they offered much better bang for buck. AMD has lost their way in that regard for some time now and that’s a major reason why this gen I was with Nvidia. My 3080 cost me less than £600 after selling the codes that came with it, meanwhile AMD equivalent cost a hell of a lot more and had poor RT performance to boot.

If AMD can come out with a better bang for buck card they will get my money once again. But they seriously need to up their RT game this time around.

 

[SpudMaster]

ATi did it back with the 4870, it is possible.
The 4890 was the cherry on top of the pie, ATi did it with the HD 5870 too.

This is probably why AMD price the way they do though because when ATI priced much lower people still bought Nvidia cards in droves. Might aswell make as much profit as they can on the small amount of cards they sell.

 

[muon]

humbug always finds a way to have a dig at AMDs rivals. I hope you at least have AMD shares.

 

[humbug]

From your own post here nVIDIA is reducing its Gross Margin: https://forums.overclockers.co.uk/t...-revenue-losses.18958357/page-2#post-35826032

AMD Gross margin: 46%
nVIDIA Gross margin: 43.5%

I would say AMD are the greedy ones .

Maybe both can lower that gross margin.

Don't work like that, those margins are not universal across the product range, margins on some products will be much higher than others.

See this? $15,000 a pop

https://www.amd.com/en/products/server-accelerators/amd-instinct-mi210

 

[Calin Banc]

Don't work like that, those margins are not universal across the product range, margins on some products will be much higher than others.

See this? $15,000 a pop

https://www.amd.com/en/products/server-accelerators/amd-instinct-mi210

For the end user:

cost/square mm for CPU 5600x was around $3.65 (82mm^2 @$299)
cost/square mm for GPU 6800xt as around $1.24 (520mm^2 @$649)

I'm guessing they were making plenty of money for that GPU. Ergo, could have lowered to price of the CPUs until it reached the same ratio. 5600x would have been around $102.

Anyway, it is what it is. Just funny how some companies always seem to be the good guy, no matter what they do, while others are just the opposite. Sounds familiar?

 

[muon]

Don't work like that, those margins are not universal across the product range, margins on some products will be much higher than others.

See this? $15,000 a pop

https://www.amd.com/en/products/server-accelerators/amd-instinct-mi210

So AMD go for high margins when they can? Sounds pretty greedy.

You used this thread to crap on Nvidia and Intel. When you starting the AMD thread?

 

[Dicehunter]

I'm 1 of those that paid stupid money for a 3080 Ti, Will I do it again ? No as it's actively adding to the problem. Nvidia and AMD have seen how much people are willing to pay, Just look at the 3090Ti... people were moaning of the price but it still sold decent numbers on launch day.

Even at the current price of £1100 Nvidia are still making a very nice profit on their 3090Ti Founders Edition so it shows how much these corporations over charge.

I'm not saying don't buy anything but people need to start setting hard price limits and not go over them otherwise we will start seeing mid range cards starting at the £1000 mark.