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

[Joxeon]

Don't forget Sony now sells the ps4 disc version at a profit with a higher cost TSMC 7nm die 16gb of GDDR6, 1tb gen 4 nvme PSU, controller, larger PCB / heatsink, case and blue ray drive, much larger box for shipping space etc.

 

[g67575]

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.

 

[Joxeon]

But the retailer in this instance is selling for £100 more than FE and at cost. So now you know how much AIB make on their mark up.

AIB is charging £100 more than FE so they will be making at best £10-£15 per card.

AIB are making a tonne of cash, Asus alone has seen net profits increase by 1000% YoY.

 

[_Cereal_]

Don't forget Sony now sells the ps4 disc version at a profit with a higher cost TSMC 7nm die 16gb of GDDR6, 1tb gen 4 nvme PSU, controller, larger PCB / heatsink, case and blue ray drive, much larger box for shipping space etc.

Yep, Nvidia has been shipping these FE cards for a year now, no way they would keep them coming for so long if there was no profit involved.

 

[Psycho Sonny]

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.

They are an ongoing cost. Shipping also cannot simply be ignored like you suggest.

Put it this way. A log cabin I was looking at was £6-£7k last year is now £10-£14k this year. Exactly the same product.

It's doubled in price. These are likely now making a loss at the lower end of the spectrum.

 

[g67575]

Maybe between 0-20% profit on the RTX 3060 TI FE. I'd guess it has become more profitable, not less.

 

[Psycho Sonny]

Don't forget Sony now sells the ps4 disc version at a profit with a higher cost TSMC 7nm die 16gb of GDDR6, 1tb gen 4 nvme PSU, controller, larger PCB / heatsink, case and blue ray drive, much larger box for shipping space etc.

That's because of them locking in a deal with the manufacturer well before Covid and price rises and chip shortages.

AMD is making a loss on every chip it sells to Sony most likely.

 

[Harlequin]

Maybe between 0-20% profit on the RTX 3060 TI FE. I'd guess it has become more profitable, not less.

Nvidia`s gross profit margin is 63%

Gross Profit Margin For NVIDIA Corporation (NVDA) | finbox.com

 

[GAC]

sigh, yes shipping has tripled, so rather than £2 its now £6 to ship a gpu (probably a lot cheaper when talking in bulk). some people honestly think large companies are paying royal mail and dpd prices.

if nvidia wasn't making money on FE's it would just stop producing them and sell the GPU's directly to AIB's for more profit, its not like they need to produce FE's to get the word out.

 

[Psycho Sonny]

Nvidia`s gross profit margin is 63%

Gross Profit Margin For NVIDIA Corporation (NVDA) | finbox.com

And how many FE cards do they sell Vs AIB?

FE is less than 1%

 

[Joxeon]

AMD is making a loss on every chip it sells to Sony most likely.

I doubt it when AMDs profits are up by 100%.

 

[Psycho Sonny]

AIB are making a tonne of cash, Asus alone has seen net profits increase by 1000% YoY.

Asus don't solely sell GPU but their GPU are also usually the most expensive to buy. As is with all their parts.

Their mark ups on other stuff like headsets will be massive wouldn't be surprised if they are selling £5 headsets at £50.

 

[g67575]

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

 

[Psycho Sonny]

I doubt it when AMDs profits are up by 100%.

Thanks to PC sector. On the consoles they are locked into a cheap deal.

Microsoft confirmed their consoles are sold at a loss.

 

[_Cereal_]

And its easy to see why when you consider xbox series X hardware specs.

 

[g67575]

Nvidia`s gross profit margin is 63%

Gross Profit Margin For NVIDIA Corporation (NVDA) | finbox.com

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.

 

[Psycho Sonny]

NET PROFIT MARGIN 36.48%

So how much profit are they making then on these cards? Nothing on the lower end. It's the higher end FE's that make any profit.

Bare in mind that 36.48% is across all lines including AIB.

 

[chrcoluk]

They not making a loss, FUD fed by AIB's to justify their high prices.

 

[chrcoluk]

AIB are making a tonne of cash, Asus alone has seen net profits increase by 1000% YoY.

Asus are now advertising in EPL games, they not struggling by any means, they are sharing advertising with large global car companies, pepsi etc.

 

[hobib_ali]

Is it that long? I haven't been checking since I got my 3060ti in August.

Nvidia must be direct selling to the big mining operators again, I suppose. Oh, no, they don't do that do they?

Miners are the single reason why there is a GPU crisis, which causes huge demand and drives up prices, now imagine if the was a crypto crash, we would be using GPU's as paper weights.