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AMD has been under shipping GPUs/CPUs while keeping prices high

RavenXXX2

RavenXXX2

RavenXXX2

Soldato
Joined
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Plenty of stock, I think they may need to start shipping less or drop their daft GPU prices. Zen 3D cache, can see them under shipping them as well, milk the desktop market for higher margins, thing is not many people are buying new expensive hardware in this financial climate.

videocardz.com

AMD admits to be undershipping CPUs and GPUs - VideoCardz.com

AMD has been undershipping GPUs/CPUs while keeping prices high AMD has been playing a supply and demand game. This might be why Radeon and Ryzen prices have been relatively high in late 2022. AMD CEO admitted during the latest earning call with investors and analysts that the company has been...
videocardz.com videocardz.com
 
This type of information makes me want to skip the launch of the 7xxx3D and wait till prices get better when the stock AMD held back arrives.
 
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rare said:
It’s not just AMD, Nvidia are masters at market manipulation. Every manufacturer in every sector does it. Most notably high end brands.
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It's crazy what they are doing seems to be legal in regards to market manipulation. But aggressive commercial practices are not. From what I can tell what they are doing breaks a fair few rules but no one seems to be stopping them. Also, I'm no expert, this is me reading an old pdf for 5 minutes Consumer protection from unfair trading - guidance - GOV.UK
 
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shame on amd, not surprised, zen4 was a flop hardly shifted much stock and same with rdna3. amd making big mistake here they have like 10% market share and will end up loosing that too since intel is making progress with drivers and price cuts all round.
seems like the fanbois only come out when nvidia and intel are price gouging, fanbois eyes never see any fault with amd.
 
I’m going to wait until summer for my CPU upgrade, with the recent AMD releases they’ve all had minor faults. Hopefully by June/July they’ll be mostly addressed. Hopefully the prices will also have stabilised by then.
 
Grim5 said:
Yep I doubt this is just an amd problem,l
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Its mentioned in other variations of this article that NVidia are doing the same thing, just so happens little raven conveniently didn't link to any of those and chose the one that negated that fact, totally accidentally I'm sure.....


www.pcworld.com

AMD is 'undershipping' chips to balance CPU, GPU supply

AMD joins Nvidia in "undershipping" chips to balance supply and keep prices higher.
www.pcworld.com www.pcworld.com


AMD isn’t the only one doing it, either.

“We’re continuing to watch each and every day in terms of the sell-through that we’re seeing,” Nvidia CFO Colette Kress said to investors in November. “So we have been undershipping. We have been undershipping gaming at this time so that we can correct that inventory that is out in the channel.”
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Also an amd comment on the story which was expected:

Update: Drew Prairie, AMD’s VP of communications, reached out with the following clarification: “We are shipping below consumption because there is too much inventory in the channel and that partners want to carry lower levels of inventory based on the demand they are seeing and their expectations for their business…the idea we are doing this to keep prices “elevated” isn’t accurate. Our client ASP was flat year over year, and that is due to mix of CPUs shipped.”

This article originally published with the headline “AMD is ‘undershipping’ chips to keep CPU, GPU prices elevated” but it has been updated to reflect AMD’s clarification.
Click to expand...
 
RavenXXX2 said:
Plenty of stock, I think they may need to start shipping less or drop their daft GPU prices. Zen 3D cache, can see them under shipping them as well, milk the desktop market for higher margins, thing is not many people are buying new expensive hardware in this financial climate.

videocardz.com

AMD admits to be undershipping CPUs and GPUs - VideoCardz.com

AMD has been undershipping GPUs/CPUs while keeping prices high AMD has been playing a supply and demand game. This might be why Radeon and Ryzen prices have been relatively high in late 2022. AMD CEO admitted during the latest earning call with investors and analysts that the company has been...
videocardz.com videocardz.com
Click to expand...

Why doesn't that article exist anymore.
 
Hotwired said:
Why doesn't that article exist anymore.
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It does on the wayback machine ;)

web.archive.org

AMD admits to be undershipping CPUs and GPUs - VideoCardz.com

AMD has been undershipping GPUs/CPUs while keeping prices high AMD has been playing a supply and demand game. This might be why Radeon and Ryzen prices have been relatively high in late 2022. AMD CEO admitted during the latest earning call with investors and analysts that the company has been...
web.archive.org web.archive.org
 
Hotwired said:
And you can tell the lawyers to go do one if you honestly reported what the AMD CEO said.
Click to expand...
I think the headline is slightly different to what was said and it doesn’t portray AMD positively. It’s semantics and terminology though as it’s pretty much what was said.
 
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In the end what this all means is that AMD have no intention of gaining marketshare.

For GPUs they are not willing to produce more RDNA2 parts as the channel cannot shift them at current prices.

For CPUs it has been obvious that they don't care for the low-end for ages now with nothing to compete with Celeron or Pentiums:
They were never willing to order more GF 12nm wafers for the under £50 market.
With Zen2/3 they weren't willing to make proper small parts.
For Zen4 they weren't willing to make a DDR4 AM5 lite part, and gambled all of the desktop market on DDR5 and AM5 prices.

As I keep pointing out, the fixed costs for most of these things has already been done. Taking existing designs and ordering more wafers should be all profit (at lower margins yes, but profit all the same), but AMD are unwilling to do so.

And yet, their GPU marketshare is now at an unviable 10%. There may have been misplaced pride there too: maybe the Radeon Group told everyone even internally how good RDNA3 was going to be and there is no need to make more RDNA2 parts.
 
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