Gibbo ETA for 3900x?

[MartinPrince]

Sorry to bring it up, but seems price has jumped up again, to 599.99

The standard pre Black Friday/Cyber Monday price hike.

 

[Gibbo]

Sorry to bring it up, but seems price has jumped up again, to 599.99

Yes to keep things simple for those who do not work in a purchasing role, stock is essentially sourced from two sources.
UK/EU official stock, this is sold to us by official distributors at AMD's pricing, maybe at most 3% margin added for the distributor, though they will work on as a little as 0.5% on high supply mainstream parts.
Grey stock, essentially stock from a broker, the broker may have sourced from official stock, or purchased from other resellers, other countries, regions extra, and the margin they add will be anywhere between 5-25% basically what they deem they can sell it for.

Then of course the product is short, its not really in stock anywhere so no reseller is going to sit at 5-8% margin on a product where demand massively outweighs supply, as such a reseller will inflate their price also to slow sales to keep product stocked and aim to make 15-20% margin.

As of now we had a good mix of official and grey stock, but since more expensive grey stock has arrived has inflated our landed cost and were not going to reduce margins on a part demand is so high on.
For us its better to list IN STOCK with a high price, than just be out of stock at a low price. Stock is always king and they are selling extremely well, over 10 a day still so a business decision it is correct.

We are typically cheapest or extremely competitive on high supply parts, 3700X at £299, 9900K at £459, both parts on which we make 1% on.
But supply and demand will always play a role and on parts like 3900X, 9900KS the price will always be way above MSRP.

3950X will be another prime example when it comes, if its MSRP on launch day, then bloody buy one, do not come crying a week later when price is £100 more, because I can guarantee supply will be poor.

 

[Gibbo]

The standard pre Black Friday/Cyber Monday price hike.

We'd love nothing more than to sell these at £479.99, but there will be no discount on a part that we can't get the supply we need on, if AMD met my PO demands for this part, which is over 1000, we'd be under £500, even potentially £479 MSRP now pound has strengthened again.
But as such finding stock is like finding a needle in a hay stack.

 

[apostolis_kt]

3950X will be another prime example when it comes, if its MSRP on launch day, then bloody buy one, do not come crying a week later when price is £100 more, because I can guarantee supply will be poor.

Hello Gibbo and thank you for your post it explains a lot on the business economics. Any idea of when the 3950x will be up for preordering/ ordering?

 

[4K8KW10]

Unless you want them (3900X and 3950X) for workstations type of load, or you desperately need it (because of too much money to give for whatever reason), there is really little to no initiative to look for one.

 

[Roguey000]

Well if the 3900x did come down to £480'ish then I would try and get one but over £500/550+ is too much for me. Its sad to see when we finally get some innovation (over 8 core) in the cpu market, prices kill it. Im guessing the 3950x is going to be something crazy like £1000+ (back to how we were with Intel pricing in the past). Surely stock should have sorted itself out in 3 months? Are things going to be any better after xmas?

 

[easyrider]

Unless you want them (3900X and 3950X) for workstations type of load, or you desperately need it (because of too much money to give for whatever reason), there is really little to no initiative to look for one.

That can be said about any product or service.

 

[Gibbo]

Well if the 3900x did come down to £480'ish then I would try and get one but over £500/550+ is too much for me. Its sad to see when we finally get some innovation (over 8 core) in the cpu market, prices kill it. Im guessing the 3950x is going to be something crazy like £1000+ (back to how we were with Intel pricing in the past). Surely stock should have sorted itself out in 3 months? Are things going to be any better after xmas?

My guess is yield rates must be rather terrible. Hence supply not getting any better. Though prices kill it, the real thing that kills it is supply, if AMD delivered me 1k units today at the official cost, we'd go out of our way to hit £479.99 and they'd be sold within a week, so when we have like only 100 or so of them and have had to pay over the odds to get them and know the product is short it all bumps the price up, end of the day were making 15%, people scream gouging, but in the overall scheme of things, 15% is nothing.

 

[easyrider]

My guess is yield rates must be rather terrible. Hence supply not getting any better. Though prices kill it, the real thing that kills it is supply, if AMD delivered me 1k units today at the official cost, we'd go out of our way to hit £479.99 and they'd be sold within a week, so when we have like only 100 or so of them and have had to pay over the odds to get them and know the product is short it all bumps the price up, end of the day were making 15%, people scream gouging, but in the overall scheme of things, 15% is nothing.

supply and demand...I ordered my 3900x in July for 479.99 I actually forgot I ordered it until I got an email beginning of October it had been dispatched...

was it worth the 3 month wait? Hell yeah what a sweet chip that literally destroys the 9900k

and at my resolution no slower in games

PERFECT

 

[4K8KW10]

That can be said about any product or service.

There are essential products/good/services without which you will be mostly isolated from the world, and such which are extras which you can obviously live without and are not important.

If AMD doesn't want to make the 3900X popular and mainstream, they can charge whatever they want for it. And sell it slowly and in small quantities.

 

[apostolis_kt]

I believe they didn't anticipate the amount of people opting for the 3900x would be that high. Why does the 3700x sell like hotcakes and is available cheaper than RRP?

Also probably fabrication issues for 3900x and 3950x and bandwidth with TSMC, add to that that all use chiplets and can be used on various products from Ryzen, TR and EPYC all adds up. I am just a consumer that wants to build a pc since the announcement last January but i would prefer to save some money here and there. I didn't anticipate that the motherboards would be double than last years equivalents and that added a good cost on my build.

 

[Gibbo]

I believe they didn't anticipate the amount of people opting for the 3900x would be that high. Why does the 3700x sell like hotcakes and is available cheaper than RRP?

Also probably fabrication issues for 3900x and 3950x and bandwidth with TSMC, add to that that all use chiplets and can be used on various products from Ryzen, TR and EPYC all adds up. I am just a consumer that wants to build a pc since the announcement last January but i would prefer to save some money here and there. I didn't anticipate that the motherboards would be double than last years equivalents and that added a good cost on my build.

Ample supply of 3700X through official distribution, I can get as many as I want, whenever I want, why we smash them out cheap.

Whereas 3900X is a constant struggle trying to buy and right now all my recent shipments have being grey much more expensive stock.

 

[alec]

If AMD doesn't want to make the 3900X popular and mainstream, they can charge whatever they want for it. And sell it slowly and in small quantities.

I would prefer AMD got the extra 100 pound margin rather than grey resellers.

 

[MartinPrince]

We'd love nothing more than to sell these at £479.99, but there will be no discount on a part that we can't get the supply we need on, if AMD met my PO demands for this part, which is over 1000, we'd be under £500, even potentially £479 MSRP now pound has strengthened again.
But as such finding stock is like finding a needle in a hay stack.

Appreciate the reply though my response was just tongue in cheek.
There is no need to justify the price for me. I understand the business model and while some of us consumers might find it slightly unethical to sell a product for 25% more than its original price just purely down to supply/demand, ethics doesn't really come into.

The price that UK firms get them in at has not really changed. So they would not be making a loss at selling them for the original £480, they just wouldn't be making as much profit as they are now, and why shouldn't they.

To put it in a wider context, there is a company that sells the 3900X on their UK website in stock right now for £540 but on their European web site it sells for £474.

There are others UK firms that are selling it for more than OcUK and if they can all 'get away with it' and maximise their profits then kudos to them. It is a similar thing that Apple have been doing for years and look where they are.

 

[Roguey000]

Thanks Gibbo for replying to me. I guess if I really want a 3900x id have to wait (until supply is better whenever that is, if at all - I guess you have no idea when that will be). I did think Black-Friday might help but with what you saying probably not now.

As for the 3700x that is a cracking price - but not sure if its a big enough jump from a 5820k (oc 4.1). I did look at the 3800x but couldnt see what it offered for the extra (just +100Mhz). Its strange the 3800x wasnt a 10 core part, much higher boost or something, I guess its down to how the chips are designed.

I did wonder when the 3950x launches, will that some pressure off the 3900x? I guess we see the 3950x launch at the same time as Epyc. I bet that will be insanely priced.

Anyway, thanks for the insight, makes a huge difference! many thanks!

 

[Gibbo]

Thanks Gibbo for replying to me. I guess if I really want a 3900x id have to wait (until supply is better whenever that is, if at all - I guess you have no idea when that will be). I did think Black-Friday might help but with what you saying probably not now.

As for the 3700x that is a cracking price - but not sure if its a big enough jump from a 5820k (oc 4.1). I did look at the 3800x but couldnt see what it offered for the extra (just +100Mhz). Its strange the 3800x wasnt a 10 core part, much higher boost or something, I guess its down to how the chips are designed.

I did wonder when the 3950x launches, will that some pressure off the 3900x? I guess we see the 3950x launch at the same time as Epyc. I bet that will be insanely priced.

Anyway, thanks for the insight, makes a huge difference! many thanks!

3950X is a much higher priced part, so it will have no impact on 3900X.

Only way 3900X is getting cheaper is if supply improves, hardly anywhere has stock.

 

[HEADRAT]

I really think somebody like Which or some other consumer body (Competition and Markets Authority) need to do an investigation into the whole supply/demand dance that seems to plague consumer CPUs/GPUs, I honestly get the feeling we're just being taken for a ride.

I'm sure it's a complex business but it's so opaque, if it's not £/$ it's demand, if it's not demand it's supply, if it's not that it's the phase of the Moon With the 3900x I believe it is just supply, the current AMD line-up and the 7nm process means they are just a victim of their own success. In other cases with CPU/GPUs (particularly GPUs) I think major players just create their own "demand" by choking supply.

Ultimately it's down to the consumer, if they refused to buy above the RRP then there wouldn't be a problem!

 

[Hilly]

hopefully the 3950 gets shown soon; I'm holding out on purchasing a new system, as I can't decide between the 3900 and 3950. Pricing obviously comes into this, a well as performance.

 

[apostolis_kt]

hopefully the 3950 gets shown soon; I'm holding out on purchasing a new system, as I can't decide between the 3900 and 3950. Pricing obviously comes into this, a well as performance.

I am in exactly the same boat.

One thing I am not fond of is the complete radio silence from AMD. I waited the whole September to hear about the 3950x getting delayed in an October announcement. Do i have to wait for 5th of November for an announcement with the Threadrippers and be able to buy it at the end of November or is it a different date? A bit more waiting and Ryzen 4000 will be upon us..

 

[snips86x]

hopefully the 3950 gets shown soon; I'm holding out on purchasing a new system, as I can't decide between the 3900 and 3950. Pricing obviously comes into this, a well as performance.

I am in exactly the same boat.

One thing I am not fond of is the complete radio silence from AMD. I waited the whole September to hear about the 3950x getting delayed in an October announcement. Do i have to wait for 5th of November for an announcement with the Threadrippers and be able to buy it at the end of November or is it a different date? A bit more waiting and Ryzen 4000 will be upon us..

I've not purchased yet as I'm waiting to see what the 4000 series can bring. If they really do manage to get the SMT with 4 threads per core, the 4x series will be astonishingly quick and well worth the wait. Hopefully by Feb, we'll have more news. Sorry Intel, but you've missed the boat here. Your constant regurgitation of old tech is tiresome and AMD really have made a come back about time too!!