Caporegime
- Joined
- 18 Oct 2002
- Posts
- 33,188
If AMD have volume to shift (and nVidia have little to none) and a faster card they can price it up, consumers will pay more money for a faster card especially if they have a hard time finding stock of the alternative.
If AMD were doing business the way you suggest why is the 6870 more expensive than the competing cards from nVidia?
You're confusing two things, if Nvidia were pricing their 460gtx's at a price that created the same level of profit as AMD, they'd be selling at £250+, 6870/50 pricing is great, you're just using essentially bombed out pricing on crap cards that perform WAY below they should and had to be slashed in price.
The 6870 is what, 20-25% ahead of a stock 460gtx, sometimes quite a bit more, yet is about the same price. According to your logic, they should price them 20-30% higher, but they don't.
You're ignoring what I'm saying, purposefully trying to create any loophole to support your argument. The KEY factor in pricing them as low as possible is to increase sales, theres hugely more sales from £200-300 than £300-400, the 6870/6850 fill a hugely high volume already, pricing them down to £100/125 would be just to spite themselves, they are at the price they were DESIGNED for, the 460gtx is most certainly not. If like the 280-260s series, the 460gtx was out before AMD's 5xxx cards, they WOULD have been priced at £250 or so.
AMD has cards at £80-125 already, why would they push their higher value, higher costing cards into that market, they wouldn't, however pricing the 6970/6950 at £300+ leaves the ENTIRE £170-300 market completely not covered, it makes no sense, and would be giving up probably a million + sales you would get in that segment, just to lower sales on a card they can flood the market with, produce with FAR higher numbers than Nvidia can.
Like I said, you're talking about a FEW sales they'd get at £400 to enthusiasts, AMD wants to sell them by the bucket load, have a clear market share advantage and ram that advantage home in pushing dev's into OpenCl and non Nvidia favouring titles killing AMD performance, this will also translate into a HUGELY stronger bargaining position with the likes of Dell when it comes to contracts and pricing.
Volume is key, profit per card is not, with volume comes higher profits, not lower volume.
AMD in the CPU market suffer from similar costs in R&D to intel, and for years similar manufacturing equipment costs, but 1/4 the sales to spread the R&D costs around, this hurts, volume is key to these markets, and pricing yourself out of more sales is incredibly bad business.