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I am a big EVGA fan and this is terrible news. Over the years, I have received great customer care from EVGA and can't think of any other company that could come close.
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EVGA terminates relationship with NVIDIA
- Thread starter tommybhoy
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80% of their revenue is not the same as 80% of their profit. They could be done for but that would be because they failed at whatever product they pivot to.
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Sad to hear it - owned a lot of their products over the years...
Didn't they make sound cards too at one point? They even tried getting in on the capture card market I think, although I'm betting neither were very lucrative.
Didn't they make sound cards too at one point? They even tried getting in on the capture card market I think, although I'm betting neither were very lucrative.
This. People seem to be completely missing the fact that revenue and profit are two entirely different things. EVGA have outright said that they're losing money on every single card they sell at current pricing, and that margins are extremely tight on graphics cards. The other parts of their business are smaller, but they're also higher margin and not generally subject to the same wild swings in pricing as GPUs have been in recent years. They can still be profitable selling motherboards and accessories and the other things they offer. Plenty of companies are so without needing GPUs. The one thing I don't buy is that they're not going to have to lay off staff. If they're completely shutting down the GPU side of their business, it seems absolutely inevitable that the fat will have to be trimmed eventually.
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Indeed, as the old saying goes - "Turnover is vanity, profit is sanity" They could sell $100B a year in cards, and if they only made $50 profit what is the point.
You only have to look at how much Nvidia sell the cards they manufacture vs what AIB's charge to see Nvidia are either taking a loss on their own cards or overcharging AIB's, from what i understand AIB margins are super tight so I'm more inclined to think Nvidia are overcharging AIB's in an attempt to squeeze them out of the market.
EVGA won’t offer Nvidia next-gen series
Citing price increases and shrinking margins, EVGA quits Nvidia.
www.jonpeddie.com
Based on the answer Steve got from his Nvidia insider source, Jensen is strongly pushing for vertical integration, he wants Nvidia to own as much of the chain as possible (and yes Jensen sees Apple as inspiration to aim for), so I can see in the future that maybe in a few years all the AIB are gone and Nvidia only sells FE cards
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I'd prefer to see other AIB's follow EVGA's lead, maybe that would prompt Nvidia to stop being dicks.
This is excellent news as now we should see some serious competition, one can hope anyway!
Bring on the HD 4870 reborn!
It will be interesting to see if Nvidia can actually vertically integrate correctly. Because they have two options.
1. Own the factory themselves
2. Have someone build their cards for them
Owning the factory yourself comes with its own issues and cost overhead, especially in relation to downtime in production. They would need to invest a lot of cash upfront, as well as building up the workforce and knowledge to do it successfully
Having someone else build it for you is a double edge sword. Nvidia has a reputation and if the company is small enough that Nvidia coming to them with such a large contract would make Nvidia their main customer, they may just outright turn down the contract for the sake of keeping their business alive.
However the sword can fall the otherway, if Nvidia is a small portion of this manufacturers business then Nvidia may find that it is their own ballsack in the vice this time.
1. Own the factory themselves
2. Have someone build their cards for them
Owning the factory yourself comes with its own issues and cost overhead, especially in relation to downtime in production. They would need to invest a lot of cash upfront, as well as building up the workforce and knowledge to do it successfully
Having someone else build it for you is a double edge sword. Nvidia has a reputation and if the company is small enough that Nvidia coming to them with such a large contract would make Nvidia their main customer, they may just outright turn down the contract for the sake of keeping their business alive.
However the sword can fall the otherway, if Nvidia is a small portion of this manufacturers business then Nvidia may find that it is their own ballsack in the vice this time.
Uhh.. it's easy for a pro amd Twitter channel to make such lovely claims that at face value look good. It's only until we apply some analysis do we remember that he said "AMD's revenue" not "AMDs graphics division revenue". AMD has its hand in a lot more pies than Nvidia and their revenue should by right be higher if the company is being run well, which it has been under Lisa. AMD's graphics division still has a long way to go, it's still meandering at around 10-20% of all new GPU sales globally
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And so we can hope more competition swings our way!
Are those figures including console gpus? Sure Nv is the market leader but RDNA2 was a huge leap forwards for AMD and RDNA3 could be revolutionary...or average or bad but it is certainly a radical different approach that may upset the balance.
This is a purely business decision. There is no point making and selling a product if you cannot make a profit on it. I imagine that working with NV is not easy with all the restrictions they put in place so why do it unless you are going to profit from it. If am sure EVGA have considered their options and have thought they would either break even or lose money by signing up to sell the 4xxx series of cards and have decided it is not worth the risk.
Never owned an EVGA card or product so no feelings either way but it does point to a trend of less choice in the future