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Anyone pre-ordering graphics cards? Or, do you prefer to buy when there's stock?

Soldato
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Just curious how many people are pre-ordering atm. There's some pre-orders for cards on Overclockers now, which I hadn't noticed until today.
 
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Soldato
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I'd say thats half true. The RTX 3080s FEs are gone in seconds, which is probably also true for the RTX 3070 TI FE. Getting one would be a stroke of luck, as you will be competing with bots.

I settled for a RTX 3070 FE in February, partly because I didn't want to spend more than £500 at the time, but also because these were available for minutes rather than seconds.
 
Soldato
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I bet if Nvidia allowed pre-orders for Founders Edition models, most PC gamers would be pretty happy with that. They could stop new pre-orders if a huge backlog builds up, until the current list has been fulfilled.

AMD could do this too, but they choose not to compete because it wouldn't benefit them or Nvidia particularly. I'd say it's like a cartel, but I think AMD and Nvidia both came to the same conclusion independently.
 
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Soldato
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every retailer seems obsessed with only taking orders when they have stock. This in turn actually increases demand and makes it go full circle.
This - It really pushes up prices and just causes frustration.

Although I think retailers are genuinely concerned that they won't ever receive sufficient supply for many models, as they probably don't receive word from suppliers about the stock they will have several months in advance.
 
Soldato
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@Psycho Sonny - Nah, they're not sold at a loss, why would Nvidia so that? I doubt they make much money on the RTX 3060 FE. Perhaps the profit ratio increases a little over time, as production becomes more efficient?

I'm 100% certain the RTX 3080 TI (£1,049) and RTX 3090 (£1,399) Founders Editions are sold at a huge profit, it's gotta be Apple levels of profit on those, at least 100%. But they don't allocate many GPU dies to FEs though, this is what people need to be aware of and is the main reason people struggle to get a good deal.

It's obvious that the profit is huge on the RTX 3090 FE, since it has only approx. 20% more shader units than the RTX 3080, with more VRAM. They just can't produce as many, so people will pay more.

Unfortunately, AMD is not competing on price with their reference models (because they are even rarer), both companies are making too much profit to consider doing that.
 
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Soldato
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And retailers are the last bit of the supply chain, so generally pick up the least profit. Nvidia is higher up this chain, so should take a bigger slice of profit.
 
Soldato
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R&D costs don't really count as it wouldn't take long to cover these costs with AIB / FE sales for Nvidia. It's not like they have to pay this each time more GPU dies are produced.
 
Soldato
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They are an ongoing cost.

R&D /investment for the next gen / refreshes has nothing to do with the current Ampere gen though. How much they invest in the next gen really doesn't concern existing customers, it depends how much Nvidia net profit makes overall, but some of the increase in revenue will no doubt go towards wage increases. Companies can also get loans to pay for R&D / investment, but in Nvidia's case, they likely have billions saved already.

There other costs like perhaps paying Samsung more to expand die production, I've heard these contracts are agreed well in advance though
 
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Soldato
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Yup, generally they are doing very well. I think a large portion of this comes from aibs though, remember FEs are a tiny fraction of card sales.

The annual net profit margin is quite a bit lower tbf, but still higher than most tech companies:
https://www.google.com/finance/quot...hUKEwiJg7HopdbzAhVJZRoKHd4HAlUQ_AUoA3oECAEQCg

They also have over $4 billion available to spend on future R&D /expansion, so no issue there.

One thing I notice is Nvidia's 'cash on hand' has fallen from £10.90B in 2020 to just 847.00M this year, so they've blown though a lot of cash on Ampere and no doubt other parts of their business too.
 
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