AMD VEGA confirmed for 2017 H1

CaptainRAVE · 3 May 2017 at 11:17

I hope this is actually decent. Nvidia seem way ahead at the moment. Keen to ditch my 295X2, but there doesn't seem to be an AMD upgrade that would offer much more?

Confused Stu · 3 May 2017 at 11:18

AthlonXP1800 said:
Actually Fury X launch price was $649 but AMD didn't get $100-$150 profit out of it. Accorded to both Gibbo and also Lisa Su back to AMD Financial Analyst Day 2015 said both CPU and GPU's profit margin is in mid single digit that around 5% or 6%.

Using margin calculator below showed AMD made a $9.89 profit at 5% margin or $12 profit at 6% margin on Fury X.

https://www.omnicalculator.com/business/margin

I never understood how AMD business model operated on very low profit margins. Still shocked at poor AMD Q1 2017 result showed revenue still flat with very low profit margins after sold 1 million Ryzen 7 CPUs made AMD a peanut profit of about $10 to 12 million and still lose lots of money posted $73 million loss. Pathetic.

Absolutely make no sense.

Isn't that graph to do with growth in particular sectors? Can't really see what that has to do with the rest of your post about profit margins on individual items.

Rroff · 3 May 2017 at 11:25

AthlonXP1800 said:
Actually Fury X launch price was $649 but AMD didn't get $100-$150 profit out of it. Accorded to both Gibbo and also Lisa Su back to AMD Financial Analyst Day 2015 said both CPU and GPU's profit margin is in mid single digit that around 5% or 6%.

People forget the other costs like R&D - a 28nm GPU core cost $20-50 million for the design work and 16/14nm is like $80 million there is a lot more eating out of that extra $400 or whatever over the BoM cost on paper before you see profit and that usually has to come out of previous sales and/or added to the product cost so you can continue to invest in development going forward.

CAT-THE-FIFTH · 3 May 2017 at 11:29

Wait why are we talking about GSync and CPU profit margins in a Vega thread when there are at least two dedicated ones already for the latter alone??

AthlonXP1800 · 3 May 2017 at 11:34

Confused Stu said:
Isn't that graph to do with growth in particular sectors? Can't really see what that has to do with the rest of your post about profit margins on individual items.

Yes in all sectors about profit margins growth.

Confused Stu · 3 May 2017 at 11:40

AthlonXP1800 said:
Yes in all sectors about profit margins growth.

Thanks - wasn't clear from the graph title and you didn't post any source/link, so didn't know.

CAT-THE-FIFTH said:
Wait why are we talking about GSync and CPU profit margins in a Vega thread when there are at least two dedicated ones already for the latter alone??

Good point, sorry. Personally, I'm looking forward to Vega pushing far ahead of the Fury lineup and giving those of us on R9 290 and above a clear upgrade path on the red team. Might end up going for the green team anyway (I've no loyalty, I'll go for whichever best meets my needs for the price), but always nice to have a choice rather than be forced to go with one company's model & pricing with no competition.

CAT-THE-FIFTH · 3 May 2017 at 11:43

Confused Stu said:
Good point, sorry. Personally, I'm looking forward to Vega pushing far ahead of the Fury lineup and giving those of us on R9 290 and above a clear upgrade path on the red team. Might end up going for the green team anyway (I've no loyalty, I'll go for whichever best meets my needs for the price), but always nice to have a choice rather than be forced to go with one company's model & pricing with no competition.

Well you need to go with what is best for your needs OFC,but its rather annoying its taking so long for Vega to be released.OTH,I do hope at least AMD releases it in a solid state given the delay.

Confused Stu · 3 May 2017 at 11:50

CAT-THE-FIFTH said:
Well you need to go with what is best for your needs OFC,but its rather annoying its taking so long for Vega to be released.OTH,I do hope at least AMD releases it in a solid state given the delay.

Agreed, on both counts. I know they've said all along it'll be "H1 2017", which we all knew meant "Q2 2017" so it's still dead on timescale as far as we know, but waiting is SO HARD!!! :eek:

DONOHUE07 · 3 May 2017 at 11:52

I like reading this thread, it goes off track some often so quickly!

hyperseven · 3 May 2017 at 11:57

DONOHUE07 said:
I like reading this thread, it goes off track some often so quickly!

It's like a microcosm of GD

AlamoX · 3 May 2017 at 12:06

AthlonXP1800 said:
Actually Fury X launch price was $649 but AMD didn't get $100-$150 profit out of it. Accorded to both Gibbo and also Lisa Su back to AMD Financial Analyst Day 2015 said both CPU and GPU's profit margin is in mid single digit that around 5% or 6%.

Using margin calculator below showed AMD made a $9.89 profit at 5% margin or $12 profit at 6% margin on Fury X.

https://www.omnicalculator.com/business/margin

I never understood how AMD business model operated on very low profit margins. Still shocked at poor AMD Q1 2017 result showed revenue still flat with very low profit margins after sold 1 million Ryzen 7 CPUs made AMD a peanut profit of about $10 to 12 million and still lose lots of money posted $73 million loss. Pathetic.

Absolutely make no sense.

AMD have profit margins of over 30% on their products, including FuryX ~200cost x3 = ~ 600$ sounds about right, small margin growth of 5% sounds about right also for desktop market, start at 31% margins at launch, end the year with 36%.
and this is what's happening with Ryzen, they expect margin growth in Q3 and Q4, but they are still making 30ish % on them, not as good as the 50-70% of Nvidia/intel margins, but still far away from the 5-6% you are talking about.
im no expert but that's how i understand it.

TNA · 3 May 2017 at 12:11

DONOHUE07 said:
I like reading this thread, it goes off track some often so quickly!

Yea.

So who is skipping Vega and waiting for Volta?

Seanspeed · 3 May 2017 at 12:19

TNA said:
Yea.

So who is skipping Vega and waiting for Volta?

That was my plan anyways. Vega is gonna be a higher price tier product and I never go for those anyways. And I'm waiting til I can get a 4k-capable card at upper mid-range pricing, which is likely gonna be Volta. But I'm also willing to look past Volta if Navi looks promising. Honestly, with Freesync and console-optimized games being more and more common, I'd be really interested in going with AMD, they just need to actually deliver the product.

N19h7m4r3 · 3 May 2017 at 12:23

TNA said:
Yea.

So who is skipping Vega and waiting for Volta?

Sorry mate, got my eye on Navi. Ain't got no time to waste on some poor Volta

Zeed · 3 May 2017 at 12:25

Lets move to price prediction

I say 550 for top Vega

DragonQ · 3 May 2017 at 12:28

AthlonXP1800 said:
I never understood how AMD business model operated on very low profit margins. Still shocked at poor AMD Q1 2017 result showed revenue still flat with very low profit margins after sold 1 million Ryzen 7 CPUs made AMD a peanut profit of about $10 to 12 million and still lose lots of money posted $73 million loss. Pathetic.

Absolutely make no sense.

Sure it does. For starters, the enthusiast-grade chips were released first. Regardless of how great an R7 1700 is for the money for everyone on this forum, a £300 CPU still doesn't appeal to the vast majority of customers. The vast majority of CPUs are sold as part of pre-built systems and I bet none of the big OEM players even have any options including Ryzen CPUs yet (I believe Alienware does though). They might find their way into high-end laptops (separate GPUs will be needed remember) but it'll be the Raven Ridge APUs that kick AMD's processor sales into gear.

TNA · 3 May 2017 at 12:38

Seanspeed said:
That was my plan anyways. Vega is gonna be a higher price tier product and I never go for those anyways. And I'm waiting til I can get a 4k-capable card at upper mid-range pricing, which is likely gonna be Volta. But I'm also willing to look past Volta if Navi looks promising. Honestly, with Freesync and console-optimized games being more and more common, I'd be really interested in going with AMD, they just need to actually deliver the product.

Could happen to me also. I may noob out and get a G-sync screen if I see one on offer. It is all about price. If I can get what I find to be good value, it may happen. Not a huge deal for me though like some. I do not feel locked in to one manufacturer or the other. I can just sell my monitor and get another if need be. It is always fun to buy and try new tech (as long as it is not priced silly). Saying that though chances are once I buy my next monitor, I will keep it for a couple of years until 4K HDR 120Hz OLED becomes available.

N19h7m4r3 said:
Sorry mate, got my eye on Navi. Ain't got no time to waste on some poor Volta

Good one

Doom112 · 3 May 2017 at 12:44

Edited.

Panos · 3 May 2017 at 12:55

TNA said:
Yea.

So who is skipping Vega and waiting for Volta?

I will skip Vega only if it is not an upgrade over the FuryX or its price eats my new Porsche fund, having the same pricing bracket as the Nvidia Titan....

CAT-THE-FIFTH · 3 May 2017 at 13:17

Panos said:
I will skip Vega only if it is not an upgrade over the FuryX or its price eats my new Porsche fund, having the same pricing bracket as the Nvidia Titan....

Buy a secondhand Porsche then,its not like they update the styling every year!!