EVGA terminates relationship with NVIDIA

[MatteRB26]

Nvidia probably won’t even care about Evga, was one of the smallest partners they had and I don’t think they will lose any market reach as they have the others to in the same markets.

Losing someone like Asus, Msi or Gigabyte would hurt more but like others have said I think they want to go it alone more. The FE cards this gen have shown they can produce a great card, just depends on if they can produce it in the quantity needed.

I've had MSI GPUs for a while, looking to replace my MSI 970 (which has been an absolute beast of an overclocked card for the last few years) and hoping to get an MSI 3070 or similar, they're just expensive i do know a few people who have used EVGA cards for a very long time though

 

[Murphy]

Just started watching the LTT Wan show and at the start he screen share a potential script for a video he was going to do on Nvidia and it seems Nvidia blacklisted LTT around the time of the 3090 launch, not exactly relevant to EVGA but it's another example of how Nvidia treat not only its partners but the media.

I do hope this all blows up and Nvidia are forced into eating humble pie, doubtful but it would be better for consumers if Nvidia didn't treat everyone like crap.

e: He later clarifies that when they went to bat for Hardware Unboxed Nvidia were never going to work with them again but they would still send them cards.

e2: Personally I'm expecting Nvidia to double down with the 40 series and have FE cards £200-300 cheaper than AIB cards so more AIB's exit the market until such a time as there's no more left, then once FE cards are the only cards you can buy from Nvidia they'll slowly start jacking the prices up.

 

[S_D]

Count me as disappointed. I'm on my third EVGA card, a 3070ti that I got from their queue. It died on day 2 and they did a decent job of replacing it.

As for Nvidia going for vertical integration and aping Apple - Jensen is on crack. He may be able to make the cards himself but he forgets that most iPhones aren't sold direct from Apple but via carriers. AIBs may sell into some prebuilt systems but I'm guessing the majority of their sales come from direct to consumer sales via OcUK and similar. Nvidia don't have the distribution to take on the AIBs themselves, that's why AIBs came about in the first place.

 

[Murphy]

Nvidia don't need the distribution to take on the AIBs themselves, we've already seen how they partnered with single large retailers in each region to sell their FE cards.

Retailers will essentially replace AIB's as the new partners, step out of line and they take their exclusive reseller of Nvidia cards to another retailer.

 

[S_D]

If AIBs margin is wafer thin but it expands the reach to the market then why would NVidia go to the trouble. Their margin is good at the mo. They'll then have to handle warranty replacements, after sales etc in all those markets as well once past the reseller obligation period. It makes no sense.

I've worked 25 years in IT. I currently work at a large American internet company We work with companies across the world and are growing partly because we work with partners and the channel to offer our product. If we cut them out we'd be shooting ourselves in the foot.

 

[Chuk_Chuk]

If AIBs margin is wafer thin but it expands the reach to the market then why would NVidia go to the trouble. Their margin is good at the mo. They'll then have to handle warranty replacements, after sales etc in all those markets as well once past the reseller obligation period. It makes no sense.

I've worked 25 years in IT. I currently work at a large American internet company We work with companies across the world and are growing partly because we work with partners and the channel to offer our product. If we cut them out we'd be shooting ourselves in the foot.

AIBs margins are wafer thin because of how much Nvidia charges them for the chip and how much Nvidia permits them to sell the final gpu for.

 

[Grim5]

If AIBs margin is wafer thin but it expands the reach to the market then why would NVidia go to the trouble. Their margin is good at the mo. They'll then have to handle warranty replacements, after sales etc in all those markets as well once past the reseller obligation period. It makes no sense.

I've worked 25 years in IT. I currently work at a large American internet company We work with companies across the world and are growing partly because we work with partners and the channel to offer our product. If we cut them out we'd be shooting ourselves in the foot.

Based on what Steve got out of evga, I think the CEO also owns the company and as such he can make emotional decisions without any board or shareholders to keep him in check - his decision feels a lot like an emotional decision, rather than a logical one

 

[S_D]

AIBs margins are wafer thin because of how much Nvidia charges them for the chip and how much Nvidia permits them to sell the final gpu for.

Agreed. So adding that tiny bit of margin to Nvidia (by Nvidia taking over AIBs market) barely adds to Nvidia's bottom line, for a lot more effort.

 

[Murphy]

If AIBs margin is wafer thin but it expands the reach to the market then why would NVidia go to the trouble. Their margin is good at the mo. They'll then have to handle warranty replacements, after sales etc in all those markets as well once past the reseller obligation period. It makes no sense.

I've worked 25 years in IT. I currently work at a large American internet company We work with companies across the world and are growing partly because we work with partners and the channel to offer our product. If we cut them out we'd be shooting ourselves in the foot.

They'd go to the trouble for the same reason anyone does, money. Their margins maybe good ATM but they could be better, when you can only buy Nvidia cards from Nvidia they can do what apple does and charge more.

As for after sales etc they'd probably just move that to the new chosen regional retailer if the obligation period ever ended. The reason the company you work for would be shooting itself in the foot is because you operate in a market with competition so if you cut them out your customers would go to one of your competitors. Nvidia doesn't or at least is trying to make it so they don't, IIRC they already have an 80% share of the GPU market and constantly push Nvidia exclusive features.

 

[Journey]

Nvidia don't need the distribution to take on the AIBs themselves, we've already seen how they partnered with single large retailers in each region to sell their FE cards.

Retailers will essentially replace AIB's as the new partners, step out of line and they take their exclusive reseller of Nvidia cards to another retailer.

It will be interesting what internal discussions would be taking place at companies like OCUK, when/if this occurs as clearly Nviida GPU's make up a staggering percentage of their total sales and in turn profit when they sell full systems. I mean they said EVGA doesn't effect them, which is true, but is this the booming voice that started the avalanche?

I've worked 25 years in IT. I currently work at a large American internet company We work with companies across the world and are growing partly because we work with partners and the channel to offer our product. If we cut them out we'd be shooting ourselves in the foot.

There are very few companies that want to take on direct distribution, but it is becoming easier for very large business concentrated on mostly a single type of product. Nvidia could easily split out the retail and OEM business, and handle the retail via a single point of distribution in a region/country. Nvidia won't lose sales unless there is a direct competing product, and for lots of people this seems to not be the case.

 

[Chuk_Chuk]

Agreed. So adding that tiny bit of margin to Nvidia (by Nvidia taking over AIBs market) barely adds to Nvidia's bottom line, for a lot more effort.

Ah I get what you are saying now

 

[Joxeon]

I way I see it is EVGA over ordered dies from nvidia to meet demand and now the demand and price has crashed they are losing money on each card they sell, nvidia won't cut them any slack and let them cancel orders or reduce prices on ordered parts.

Personally I don't feel sorry for EVGA as they were more than happy to screw customers over and charge £3000 for RTX3090s, £2000 3080s etc and were not complaining about Nvidia back then, now the shoe is on the other foot they don't like it and go crying to the media.

 

[RavenXXX2]

lol stop defending Nvidia, it's embarrassing. Nvidia take too much margin for AIBs to make a decent profit, ask yourself how much margin they are on for EVGA to make a loss on a $1300 GPU. Nvidia then under cut the AIBs with their FE and screw them over. I can see why EVGA don't want to put up with anymore of Jensen's ****. Nvidia is and will always be a scummy company.

 

[Freddie1980]

EVGA has always been a weird setup universally praised by our cousins in North America but largely panned in Europe because of poor after sales service.

This 'loyalty' they're showing to Nvidia by not partnering with either Intel or AMD just doesn't make any kind of business sense. Nvidia seemingly thinks companies like EVGA exist to make money out Nvidia's hard work and doesn't help them with old inventory. Must be Chinese way of doing business I guess.

 

[Gregster]

Genuinely not surprised to read this. Since Nvidia have sold GPUs themselves and cheaper than AIBs, it made no sense to buy from the likes of EVGA MSI etc other than warranty. I totally get where EVGA are coming from and I applaud them. I hope they are good for the future, as they are a decent company and make good products and I for one hope this bites Nvidia on the ass.

 

[Freddie1980]

lol stop defending Nvidia, it's embarrassing. Nvidia take too much margin for AIBs to make a decent profit, ask yourself how much margin they are on for EVGA to make a loss on a $1300 GPU. Nvidia then under cut the AIBs with their FE and screw them over. I can see why EVGA don't want to put up with anymore of Jensen's ****. Nvidia is and will always be a scummy company.

I agree Nvidia have been anti consumer and anti business for a long time now and EVGA are just a casualty of Nvidia's practices. However the decline at EVGA is also self inflicted, they've chosen to stay blindly loyal to Nvidia all these years completely exposing them to Nvidia's business prospects and practices.

AMD may have taken them on but Intel should have been kicking down the door to get them onboard. Bizarre of doing business although I suspect they will kiss and make-up with Nvidia sooner rather them latter.

 

[Freddie1980]

Genuinely not surprised to read this. Since Nvidia have sold GPUs themselves and cheaper than AIBs, it made no sense to buy from the likes of EVGA MSI etc other than warranty. I totally get where EVGA are coming from and I applaud them. I hope they are good for the future, as they are a decent company and make good products and I for one hope this bites Nvidia on the ass.

Unlikely though. Mosquito and elephant springs to mind. Looks like Nvidia want to go down the Apple route and do everything in-house and limit consumer choice. The sad part is everyone will accept this and keep buying Nvidia's products and higher and higher prices just as they have always done.

 

[Gregster]

Unlikely though. Mosquito and elephant springs to mind. Looks like Nvidia want to go down the Apple route and do everything in-house and limit consumer choice. The sad part is everyone will accept this and keep buying Nvidia's products and higher and higher prices just as they have always done.

Totally agreed with the Apple route and as a self confessed Nvidia fan boy, this does leave a sour taste.

 

[Chuk_Chuk]

I agree Nvidia have been anti consumer and anti business for a long time now and EVGA are just a casualty of Nvidia's practices. However the decline at EVGA is also self inflicted, they've chosen to stay blindly loyal to Nvidia all these years completely exposing them to Nvidia's business prospects and practices.

TBF it’s not like EVGA had a choice. Nvidia don’t forgive and they don’t forget. Any attempt to diversify their gpu business from Nvidia would have been met with a swift blacklisting.

 

[BigBANGtheory]

Nvidia's margins are the primary cause of this, competition, market conditions and regulation are the only thing that go in the consumer's favour.

The one good thing that comes out of this is news and information, more and more people are waking up to these exploitative practices at a time less people have money to throw at the problem... Nvidia will hate the truth behind the scenes being exposed like this, a glimpse behind the curtain of PR and marketing.