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Some Nvidia Partners To Go Under ?
- Thread starter LoadsaMoney
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Caporegime
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- 18 Oct 2002
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- 33,188
Yes, you'd be dumb to sign that contract NOW, but most contracts aren't for the supply over the next 20 minutes, but a year or two, if not longer. BFG and EVGA are known Nvidia only partners and they get better prices per core from Nvidia for being exclusive, XFX did a very smart thing, stuck two fingers up at Nvidia and started selling ATi, which has paid off for them immensely.
As said really it has to be one of the exclusive Nvidia partners in trouble, and that really narrows it down, in Europe, to BFG/EVGA.
The £300+ cards don't make them much money because sales will be very very low, but the £120-300 bracket sells in the millions with decent profit on many of them, but thats the problem, Nvidia aren't selling anything above what, £80 in anything but handfuls.
A BFG rep would never in a million years come on and say they were in trouble, the hint of trouble means people won't even buy the cards they do have for sale because they'll assume support might just not be there in a few months, which will just make the problem worse. Untill the day a company closes down expect most rep's for the company to talk about how fantastically well they are doing, for instance, look at Nvidia's CEO, everythings on track, perfect and better than everyone else.
Considering this is Fud, well really the only news anyone can believe from him is bad news for Nvidia, because when even Fud isn't denying it, theres a real problem somewhere
As AMD told everyone Dec 15th would be when more cards start to appear and likewise even Fud is now reporting that all AMD's partners are saying they are getting far larger shipments of RV870 cores. They are getting the cores now and they should be turning them around, packaging up and sending out within a week so as AMD told everyone, supply would ease around the middle of December.
In other words you'd be clinically insane to buy in the next 10 days, expect pre-orders to take a lot of stock, at stupid prices for the people that want to pay but within a couple weeks you should be able to at least pre-order at normal prices and get it within a few days.
As I said in other threads, the yields issue per waifer had smeg all to do with the lack of 58XX cards, it was the TSMC production line which meant a 6 week wait for new batches to be finished.
Not only will they be back up to almost normal supply for the 58XX cards, as people finally get their orders and people get less desparate for them, when they start being in stock everywhere a little price competition just amongst retailers will see people starting to put deals on them. YAY.
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BFG and EVGA won't be going anywhere. NVidia's strategy will have been talked through a very long time ago and there will be all sorts of clauses in contracts about what happens if NVidia can't supply cards.
I suspect we'll see an expansion in BFGs product range beyond just graphics cards. You can bet they will have a plan. Highly successful US businessmen and women don't just go out of business - they adapt and they'll be around for a while yet.
I suspect we'll see an expansion in BFGs product range beyond just graphics cards. You can bet they will have a plan. Highly successful US businessmen and women don't just go out of business - they adapt and they'll be around for a while yet.
So do BFG but as with them non of their cards can be sourced.
But the next time contracts come up i can see the end of exclusive deals where nvidia is concerned as no one is going to want to take a chance of this happening again. Anyway you look at it right now things are not good for the green team or their business partners and that is purely down to nvidia not delivering.
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Its only a matter of time...
Soldato
- Joined
- 18 Oct 2002
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- England
oh boy must pain nvidias eyes seeing that 
Mumbles something about the 'highly successful' Lehman Brothers Investment Bank.
You are joking right ?
They already do PSUs. Don't see why they wouldn't expand more into PSUs, maybe chassis like Corsair have done. Motherboards again maybe.
I doubt anyone will go out of business. Maybe just not fill the channels as much until a decent supply of Nvidia's new cards come in. What they should do is get with ATI as well.
I have no idea what your background is, but every contract I've ever seen has a simple set of clauses that allow for one party to terminate or operate contrary to the contract if the other party doesn't do what they said they would.
So, I can imagine that in BFG's contract with NVidia it will say something like;
"If NVidia fail to supply BFG with a competitive product that BFG can sell, BFG can go elsewhere"
or
""If NVidia fail to supply BFG with a competitive product that BFG can sell, NVidia will compensate BFG for loss of earnings"
BFGs warranties are underwritten by an insurance company. For every card sold, a proportion of that cost goes to the insurer to pay for a replacement card if the original one dies. So even if BFG do go bust, the warranty claim will still be honoured by the receiver or whatever entity exists following the insolvency hearings. They bank on the cost of the replacement card falling over time, plus the number of extreme long-term warranty claims is going to be VERY low.
I do think that BFG are tightening the replacement policy though as evidenced by the number of people RMAing 8800's and getting 8800's back whereas before they were getting 250's, 260's and 280's back. If you think about it, that must happen if the supply of new cards has dried up. Plus it looks like they are actually testing the cards now before they accept the RMA.
Strangely enough - the people who actually crashed Lehman's aren't out of work. They're just working elsewhere. Many of the lowly clerks and admin people are out work, but the Ivy League MBA management that weren't kept on to run the remains of Lehman's all got nice jobs elsewhere almost immediately. And they're coining it in again.
I have a back ground of dealing with American companys and
I can assure you some company's skirt very close to unfair contract terms and I have found them very comfortable with many shades of morally gray.
I bet Nvidia will have them over a barrel as regards severance.
At the end of everything they are a graphics cards company and they have no cards to sell.
BFG may have no financial problems at all, and probaly have no need to jump ship.
I can assure you some company's skirt very close to unfair contract terms and I have found them very comfortable with many shades of morally gray.
I bet Nvidia will have them over a barrel as regards severance.
At the end of everything they are a graphics cards company and they have no cards to sell.
BFG may have no financial problems at all, and probaly have no need to jump ship.
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But we're not talking about severance, we're talking about breach of contract, and I think you'll find that NVidia will already be in breach of contract because they haven't supplied any competitive parts for BFG to rebrand. This is big-boys stuff and if you think about it there are three players in this. AMD - why should they upset their partners by giving BFG and EVGA already scarce parts to retail? BFG - They need products to sell or compensation if they don't get them. And NVidia who have failed to come up with the goods and face the prospect of their premier 'brands' going under or defecting.
It makes no sense for NVidia to allow one of their premier partners to go out of business, and that's not morally grey or any other colour. NVidia need retail partners to retail package their product. BFG and EVGA don't make the cards - that's down to people like Foxconn and J&W and they'll be hurting too. What does teh assembly line that used to kick out GTX200's all day long make now? Long-term NVidia will look after their partners because it makes sound business sense to do so. You may even find that NVidia have options on the BFG and EVGA brands so that if they do go out of business, the brand owners are compensated and the brands can be resurrected when product is available.
The great thing about this game is that we can revisit this in 30/60/90/365 days and find out what does happen.