If that's how you feel about it fine.
Fact is the 7970 costs more to make. At least AMD have that as a small excuse.
If the card coming is a 670ti or plain 670 then it will use the same wafer core as the 680. Just because they laser cut some of the cores and shaders or whatever they want to call them doesn't mean the wafer will be any cheaper to buy.
Thus, putting an already scarce wafer on a PCB and charging a lot less for it won't be the game plan and I can promise you that.
If this wafer shortage continues and affects both companies you will see prices soar. Look what happened to hard drives when the parts became scarce due to the flooding in Thailand.
Firstly, theres really no proof of wafer shortages, there aren't that many wafers on 28nm, there aren't nearly as many customers for 28nm as 40nm. How much is enough, who knows, in 18 months TSMC will be pushing out probably 200k+ wafers a month on 28nm, while right now they are pushing around the 30k mark probably, the thing is, AMD/Nvidia aren't using 30k wafers a month now, and they won't be using more than 30k a month in 2 years either.
AMD/Nvidia are often TSMC's biggest customer on a new process, both because they don't need that many wafers and the higher price of the product can absorb lower yields more effectively than guys making chips that need to be produced for $5 a piece and sell at $5.50 by the 100million to make a decent profit.
Either way, AMD have huge supply, have had huge supply since Jan, and have added midrange cards that sell in magnitudes larger quantities with many more wafer starts which also have no supply problems.
No one except Nvidia is talking about yields negatively which suggests Nvidia's yields are once again in the tank, in which case they most certainly don't cost less to produce than AMD. Think of it this way, AMD had more supply on launch than the 680gtx has had to date, on a high end part, they've since lauched two other products that have vastly higher wafer starts, that also have no supply problem. Nvidia has released one real product, which doesn't need that many wafers, a fraction of what the 7770/7870 would need, and can't supply it.
a 300mm^2 chip with terrible yield will cost many times MORE to produce than a highly yielding 370mm^2 chip. Who knows the actual numbers, but by stock(when 28nm was "new" AMD sent out 2x10k shipments before they hit the shelves, Nvidia supposely have only just managed 10k on a much more mature process with much larger wafer output) Nvidia is having massive yield problems.
of course, every wafer that Nvidia has already done could have dozens of 670gtx's ready to go, you seem to suggest the 670gtx won't be cheaper for Nvidia, but it will.
Take a wafer that costs $8k or whatever, now take 20 680gtx's off it and that is it, you've got $400 per gpu, now take 40 670gtx's off the SAME wafer after binning, and you've got 60 gpu's total and each core is now $133.3 in cost. They don't buy a wafer and take 20 680gtx's off it then chuck the rest out, then buy a new wafer and take 40 670gtx's off it then throw away the rest.
As for comparing to hard drive prices, massive portions of hdd production shut down for essentially 3-6 months, TSMC have enough supply for AMD/Nvidia, and production (assuming it did shut down) was only down for a couple weeks and AMD has since dropped prices significantly.
It's always completely impossible to tell where the profit line is and how much we the consumer are being screwed. 28nm costs more, everyone says that, yield wise(largely from apparent supply) Nvidia are in the toilet, AMD are fine. I picked up a 7970 for just over £330, a 5870 cost £300.... how bad are we really being screwed by AMD and how much are people LETTING retailers screw them?
you would have thought by now a process would be invented where they do not have to bin chips but everyone is fully functioning.
Read up on chip production, then think about the fact that 4-7billion transistors smaller than the eye can see will be on chips this generation, and then realise that getting ANY fully working chips is a god damned technical marvel, well to be fair, Nvidia's probably circa 7billion transistor chip is going to have a horrifically bad yield, we all know it