EVGA terminates relationship with NVIDIA

[philo-sofa]

I think it's very easy to see why not. Intel is irrelevant in the GPU market & at best will start even being on par with AMD in terms of market share (i.e. 20% or so) 4-6 years from now, and with questionable margins - if you look Alchemist and what they hope to sell it for it's clear that they're at best selling these chips at cost or near enough. As for AMD they have historically had lower margins than Nvidia and also seen as a more budget option by customers, which simply means slim margins again. All that and then you look at their volume, and it's not much to recommend them.

Granted, at least AMD/Intel aren't as big of an a-holes as Nvidia so they wouldn't be squeezed as much but it's also a smaller slice of the pie to begin with and with a very uncertain future. Ultimately what's the prize? All of them want the AIBs to get the least margin they can just so that they're still alive, but just like Nvidia AMD/Intel also want to capture most of the margin for themselves; the only difference is that they're not in the position to be that ruthless. So if they're treading water with Nvidia what's the point in changing to AMD/Intel and also keep treading water. Overall I don't think the aibs really have much of a future, they will be supplanted by AMD/Intel/Nvidia, it's just a matter of when.

Plus I think they do want to keep the door open for a possible revival of their relationship with Nvidia, even if it won't materialise.

Fair points. But I agree with GN that evga have a lot of leverage right now given how much their expertise and name recognition would mean to Intel. Possibly to the point they’d be willing to sell chips at a loss to compensate evga; what’s another few million to them to get a top rank AIB after spending billions on alchemist.

 

[humbug]

If Intel's GPU's aren't good they will drag the EVGA name in to the mud, most people don't know about the politics and nuances, its an EVGA card and its bloody hateful. read the Newegg user reviews on ARC.

 

[Murphy]

Like i said on the last page their CEO seemed adamant that they wouldn't be making Intel or AMD card, i think it was Jay who said he still seemed nervous of Nvidia even though they were breaking ties, i wouldn't put it past Nvidia to blacklist EVGA employees if they started making AMD or Intel cards.

Nvidia contacted a load of their AIB partners about withdrawing sponsorship of LTT video after he publicly supported Hardware Unboxed so them doing the same to blacklist EVGA employees does seem like the sort of thing they'd do.

 

[Chuk_Chuk]

Like i said on the last page their CEO seemed adamant that they wouldn't be making Intel or AMD card, i think it was Jay who said he still seemed nervous of Nvidia even though they were breaking ties, i wouldn't put it past Nvidia to blacklist EVGA employees if they started making AMD or Intel cards.

Nvidia contacted a load of their AIB partners about withdrawing sponsorship of LTT video after he publicly supported Hardware Unboxed so them doing the same to blacklist EVGA employees does seem like the sort of thing they'd do.

I’ve seen it mentioned about Nvidia blacklisting employees by you and I think someone else. Do you mean blacklisting the company or do you think Nvidia would go as far as to target individual high level executives?

 

[Joxeon]

They made this decision back in April or June, well before the mining bubble burst so it's very unlikely to have anything to do with that, unless EVGA's CEO has a crystal ball.

Mining was pretty much dead by April atleast in terms of new card sales and prices were already in a downward spiral.

 

[Blackjack Davy]

I think it's crazy they priced so the AIBs had to sell high then undercut the AIBs themselves, full on nuts.

I think thats called having your cake and eating it, AIBs have the costs of purchase and distribution along with the risks and then Nvidia undercut them with their own cards further increasing their sales while squeezing AIBs even tighter.

 

[Joxeon]

I think thats called having your cake and eating it, AIBs have the costs of purchase and distribution along with the risks and then Nvidia undercut them with their own cards further increasing their sales while simultaneously squeezing AIBs even harder.

If AIBs wanted to save money then they should stop making around 10 different versions of the same card and focus on the basics like solid cooling instead of the RGB and flashy designs.

 

[BigBANGtheory]

I think thats called having your cake and eating it, AIBs have the costs of purchase and distribution along with the risks and then Nvidia undercut them with their own cards further increasing their sales while squeezing AIBs even tighter.

Which in some cases was warranted, don't forget AIBs took the absolute **** with pricing for certain periods it is a little rich for them to roll with the good times and call foul when it suits them. The real problem is though Nvidia targeting that high margin (even when conditions change) and willing to stock pile rather than respond to real world demand.... and they got caught in a bad position now willing to throw their partners under a bus for a problem they caused.

 

[Murphy]

I’ve seen it mentioned about Nvidia blacklisting employees by you and I think someone else. Do you mean blacklisting the company or do you think Nvidia would go as far as to target individual high level executives?

I think Nvidia would target every single employee from the CEO right down to the guy who cleans the offices, Nvidia would probably do everything in its powers to make sure none of them would ever work for a company that deals with Nvidia again.

 

[Joxeon]

People who are sticking up for EVGA have short memories. EVGA had no complaints back then.

You live by the sword...

 

[Gregster]

People who are sticking up for EVGA have short memories. EVGA had no complaints back then.

You live by the sword...

Is that EVGA's price or what the supply and demand has set? I know from history that prices increases when stock is short because the retailer wants to make max profit (fair enough). I doubt EVGA or any of the AIBs make huge profits when supply is low.

 

[Joxeon]

Is that EVGA's price or what the supply and demand has set? I know from history that prices increases when stock is short because the retailer wants to make max profit (fair enough). I doubt EVGA or any of the AIBs make huge profits when supply is low.

I can't find EVGA's financials but pretty sure all the other AIBs were making record profits during the times of silly pricing.

 

[Chuk_Chuk]

People who are sticking up for EVGA have short memories. EVGA had no complaints back then.

You live by the sword...

A questions. The video states that Nvidia controls the end price that AIBs can sell their GPUs for, so either Nvidia authorised those prices or EVGA stepped out of line or someone else in the chain stepped out of line. The question is who was it that permitted those prices or is it a combination of all 3

 

[Joxeon]

A questions. The video states that Nvidia controls the end price that AIBs can sell their GPUs for, so either Nvidia authorised those prices or EVGA stepped out of line or someone else in the chain stepped out of line. The question is who was it that permitted those prices or is it a combination of all 3

This was what Gibbo said last year.

Some of the 3090's have increased by nearly $500 from the AIB, distributors also no doubt making higher margins. Of course were also not listing products at 5-12%, because supply and demand, were hovering around 20% but in reflection of that we are shipping backorders at -20% to -30% because the partners refuse to help.

I question how a 3090 can increase by over $500 because I am pretty sure manufacturing cost simply cannot increase by this amount and its not because of shipping cost as those are added afterwards which are now 5-10x more expensive.

 

[Chuk_Chuk]

This was what Gibbo said last year.

Some of the 3090's have increased by nearly $500 from the AIB, distributors also no doubt making higher margins. Of course were also not listing products at 5-12%, because supply and demand, were hovering around 20% but in reflection of that we are shipping backorders at -20% to -30% because the partners refuse to help.

I question how a 3090 can increase by over $500 because I am pretty sure manufacturing cost simply cannot increase by this amount and its not because of shipping cost as those are added afterwards which are now 5-10x more expensive.

So a combination of everyone taking a slice, it seems.

 

[CuriousTomCat]

Even the end user (demand) is partly responsible for the high prices.

 

[Nexus18]

Nvidia bad, amd good!




Worry less about the politics/working practices and enjoy the products as long as they deliver what you need for a price you're willing to pay, if not, you simply vote with your wallet.

 

[Twinz]

AMD screws us raw. Nvidia uses AIB's like a strap-on when they screw us.

 

[keyser van someone]

I'm not really loyal to any company, I get the 'best' CPU/GPU for the job at the time. EVGA did make good coolers but I was put off by peoples bad customer service and warranty experience in the UK. The best card of the 3000 series was ASUS TUF - I mean best to me is the best at cooling, which means quietest, warranty second, that's all the matters.

Of course I couldn't actually buy a ASUS TUF I was lucky to get an FE card, and that wasn't bad actually, it was just short by a 3rd fan .

What does this mean? EVGA GPU customers will now buy from a different company.

 

[nomadd]

Even the end user (demand) is partly responsible for the high prices.

Yep, recent auction sold prices for 3080 cards are still eye watering. Still huge demand out there, even for cards about to be hugely eclipsed.