Why is the computer parts market so screwed up?

[papajo]

19 minutes ago, BlueChinchillaEatingDorito said:

Honestly the disruption in global supply chains, the ability for production to proceed safely, and transportation networks in general due to the ongoing pandemic is probably a larger contributor than scalpers. To put into perspective, my stove top broke down a few months ago and we ordered a new one through Home Depot. The expected wait time for delivery was 3 months. There was simply not much in stock for the entire region. For something that's arguably a bigger necessity than computer parts is back ordered for months, you know there is a serious problem.

I would suggest to you to read my post above were I argued as to how covid doesnt apply

 

On top of what I said I would like to add that stove models (probably made in the thousands in contrast to GPU which are made or at least used to be made in the millions) are not the same as graphics cards not only because their production is limited but because the entire distribution is different you dont just "mail in" stoves you have to hire guys to load them on a truck and unload them to your place is one from the many differences, 

 

GPUs get packet in the thousands in containers shipped to the local distributors and they mail them or transport them in big quantities to retail stores. 

 

Last but not least I ordered various stuff the past year never waited 3 months for anything maybe it is your particular store brand and model that wasnt available. 

 

On top of that besides the waiting time did you pay 1,5 times ?2 ? or 3? the MSRP price for said stove? if not then it doesnt apply. 

 

Also how does this explain the price gauge about existing stock GPUs that have skyrocketed (old gen ones) ? 

 

And why dont we see the same problems in intel GPU orders or AMD 3000 series orders or in Monitors, mice, motherboards, ram kits HDDs etc etc

 

Did covid intentionally hit only the new gen GPU production lines ?

[Middcore]

I'd reckon the reason we don't see a problem with Intel GPU orders is that Intel GPU's don't exist yet.

[SAVE-12-HK]

simply MONOPOLY

suppoted by fanboys

[SandmanSoggs]

On 1/14/2021 at 8:51 PM, Kawsy said:

As title states, what are the reasons behind why most components are out of stock everywhere and the steep price increase of every single component on the market?

I had to wait a month for my 1660 super to get in stock and arrive because everybody is getting PC's during lockdown to entertain themselves.

[papajo]

On 1/18/2021 at 3:04 AM, Middcore said:

I'd reckon the reason we don't see a problem with Intel GPU orders is that Intel GPU's don't exist yet.

igpus are included otherwise intel wouldnt have any share to begin with all those years... let alone the lion's cut 

[Mark Kaine]

On 1/18/2021 at 1:27 AM, Maury Sells Wigs said:

but this is impossible. 

not impossible, but simply not wanted and not planned for. 

Quote

The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. ... The JIT inventory system contrasts with just-in-case strategies, wherein producers hold sufficient inventories to have enough product to absorb maximum market demand.

or how I call it the I just-don't-care strategy  (JDC) 

 

¯\_(ツ)_/¯

[Moonzy]

On 1/18/2021 at 8:03 AM, papajo said:

There altcoin mining is not that much profitable anymore especially not at such prices! 

 

 

Btw in my initial post in this topic I linked a similar topic I had in which I say that I believe even the "bitcoin Bogeymen" were just a scheme and it checks out since now that they cant fault altcoin mining for gpu demand they found a new scapegoat. 

Can I just say that my 3060tis are on their way to pay off what I paid for them in 4 months at the current rate? Including electricity

 

Idk where the graph is from but it's very wrong, each 3060ti is generating $4-5 USD everyday as of writing, and have been this way since December (when I got them at launch)

 

You may say mining isn't the main cause, but if that's the case, there won't be 3070 on the shelves (for my location), since miners only care about 3060ti and 3080

But in my location, you can walk out and buy 3070 while the other two are rare unicorns that are very protected right now.

So yes miner do play some role in this, and I can see why, since I am one.

 

On a global scale, no idea, I don't think there's many scalpers in my country, that's why 3070 is VERY PLENTIFUL on shelves

[Morrie Sells Wigs]

1 hour ago, Mark Kaine said:

not impossible, but simply not wanted and not planned for. 

or how I call it the I just-don't-care strategy  (JDC) 

 

¯\_(ツ)_/¯

I disagree. 

 

I don't think Sony, or Microsoft, or Nvidia etc...could have gotten enough units to market to satisfy the pre-Christmas demand.

We can certainly debate whether they care about short supplies, absolutely. 

 

But, if they were resolutely determined to get as many units to market as possible I still don't think it would have been enough. 

PC sales have been booming, and globally there are millions (literally) with the resources and the desire to purchase a new GPU or console.

Making sure each country has more than enough (which is the only way to ensure supply outstrips demand) simply wasn't possible, in my opinion. 

 

However, I'd happily take that back if it can be proven they intentionally withheld supply to manipulate the consumer. 

[papajo]

57 minutes ago, Dean0919 said:

COVID-19.

Why can I order then any Intel cpu at msrp and with availability? why can I order monitors at msrp with availability? why can I order ram at msrp with availability? and so on and so forth does Covid have any personal hatred only for the new GPUs and ryzen 5000?

[papajo]

1 hour ago, Maury Sells Wigs said:

I disagree. 

 

I don't think Sony, or Microsoft, or Nvidia etc...could have gotten enough units to market to satisfy the pre-Christmas demand.

We can certainly debate whether they care about short supplies, absolutely. 

 

But, if they were resolutely determined to get as many units to market as possible I still don't think it would have been enough. 

PC sales have been booming, and globally there are millions (literally) with the resources and the desire to purchase a new GPU or console.

Making sure each country has more than enough (which is the only way to ensure supply outstrips demand) simply wasn't possible, in my opinion. 

 

However, I'd happily take that back if it can be proven they intentionally withheld supply to manipulate the consumer. 

PS4 sales over a million units sold first day and 2.4 millions sold up to December 1st (or in otherwords within about 15 days since it launched on November 15th) according to this article published on December 4th https://screenrant.com/ps5-sales-4-million-xbox-series-nintendo-switch/ 

 

PS5 sold over 4 million units since its launch according to this January 3rd article (so within one month and and 20 something days) https://screenrant.com/ps5-sales-4-million-xbox-series-nintendo-switch/

 

 

So the sales are not so "insanely" bigger as everyone claims they are more or less the same (yes 2.4 is lower than 4 but the first number has been achieved in about 15 days while the second in almost 2 months) 

 

+ we are talking about Sony here covid exists for like a year before PS5's launch and whatever data of people ordering more stuff during the pandemic surely was calculated in their sales projections. 

 

As for the Graphics card sales here we see again that the sales are not that much bigger even during the supposed mining craze https://www.statista.com/statistics/754557/worldwide-gpu-shipments-market-share-by-vendor/#:~:text=As of the third quarter,market share of 19 percent.

 

(unfortunately my account expired and I dont have access to it but you can see it looks identical with the one I uploaded that goes about until 2019 and you can see that the lines on the chart did not change that much and it is up to 2021) 

 

Also what I can show you is this one 

 

 

that goes up until 19 and in which you can see again that graphics cards sold (during the supposedly mining craze) are not much bigger  also noteworthy is that in the past namely 2010 to 2012 sales were about DOUBLE the current ones..

 

Do you remember any supply shortages back in 2010? any skyrocketing prices? any scalpers? I surely dont! 

 

What I remember in 2010 was that I could buy the flagship (GTX 480) nvidia GPU for about $500 and I thought it was overpriced! (because previous to that you could get a flagship card for $400)  the second in line (GTX 470) was at $350 and the GTX 460 was about $200

 

easy structure entry level graphics midrange sweetspot and flagship all at relatively rational pricing

 

Now you have 129018230912839012 different model SKUs and all are at ridiculous pricetags! 

[Morrie Sells Wigs]

11 minutes ago, papajo said:

PS4 sales over a million units sold first day and 2.4 millions sold up to December 1st (or in otherwords within about 15 days since it launched on November 15th) according to this article published on December 4th https://screenrant.com/ps5-sales-4-million-xbox-series-nintendo-switch/ 

 

PS5 sold over 4 million units since its launch according to this January 3rd article (so within one month and and 20 something days) https://screenrant.com/ps5-sales-4-million-xbox-series-nintendo-switch/

 

 

So the sales are not so "insanely" bigger as everyone claims they are more or less the same (yes 2.4 is lower than 4 but the first number has been achieved in about 15 days while the second in almost 2 months) 

 

+ we are talking about Sony here covid exists for like a year before PS5's launch and whatever data of people ordering more stuff during the pandemic surely was calculated in their sales projections. 

 

As for the Graphics card sales here we see again that the sales are not that much bigger even during the supposed mining craze https://www.statista.com/statistics/754557/worldwide-gpu-shipments-market-share-by-vendor/#:~:text=As of the third quarter,market share of 19 percent.

 

(unfortunately my account expired and I dont have access to it but you can see it looks identical with the one I uploaded that goes about until 2019 and you can see that the lines on the chart did not change that much and it is up to 2021) 

 

Also what I can show you is this one 

 

 

that goes up until 19 and in which you can see again that graphics cards sold (during the supposedly mining craze) are not much bigger  also noteworthy is that in the past namely 2010 to 2012 sales were about DOUBLE the current ones..

 

Do you remember any supply shortages back in 2010? any skyrocketing prices? any scalpers? I surely dont! 

 

What I remember in 2010 was that I could buy the flagship (GTX 480) nvidia GPU for about $500 and I thought it was overpriced! (because previous to that you could get a flagship card for $400)  the second in line (GTX 470) was at $350 and the GTX 460 was about $200

 

easy structure entry level graphics midrange sweetspot and flagship all at relatively rational pricing

 

Now you have 129018230912839012 different model SKUs and all are at ridiculous pricetags! 

Fair point.

 

Your evidence is persuasive. 

[FRD]

The computer parts market is indeed screwed up right now, but it's all because of the virus going around or else the market would be normal. The last few months I have noticed that even secondhand parts have gone up in price. These days anything is considered a "deal" if it's at MSRP. However, by some digging and luck you can still get the real deals. Recently still picked up a Ryzen 2600 for under $100 and 16GB RAM for under $50. It's not a fun time to buy new PC parts. People still support the high prices because of scalpers and also because they are fine to pay a bit extra over normal MSRP. To me I just try to find the normal stocked or niche products, all mainstream products are not worth it in my opinion. This virus really tested that people do are impatient when buying products (not all people though).

[Mark Kaine]

6 hours ago, Maury Sells Wigs said:

However, I'd happily take that back if it can be proven they intentionally withheld supply to manipulate the consumer. 

they probably didn't purposefully withhold "supply" they were just determined to release in a certain time frame (before the holidays, before "consoles" in the pc parts supplier case...) which is all rather unusual because usually things get released around March or so generally iirc, so it probably wasn't feasible for them to "delay" but not "impossible" at all either, *especially* in the case of the dedicated gpus, they simply released prematurely and what you said doesn't really counter what I said (it would have been "possible") I respect your opinion on the matter, but yeah. 

[IkeaGnome]

5 hours ago, papajo said:

Why can I order then any Intel cpu at msrp and with availability? why can I order monitors at msrp with availability? why can I order ram at msrp with availability? and so on and so forth does Covid have any personal hatred only for the new GPUs and ryzen 5000?

They launched in April. They started ramping up production theoretically, before COVID messed up supply chains. 

They launched in April, they've had 6-8 extra months to get caught up on supply chain issues.

[Middcore]

Also, nobody wants Intel CPU's. 

[papajo]

9 hours ago, Voluspa said:

They launched in April. They started ramping up production theoretically, before COVID messed up supply chains. 

They launched in April, they've had 6-8 extra months to get caught up on supply chain issues.

Covid exists (as a public emergency of international concern ) since January 2020. 

 

And what do you mean by "they" did everything I mentioned above from monitor to mices launch on April and nothing afterwards? 

 

Also if you read anything else I wrote here you would know that it is highly unlikely that covid can affect particularly GPU and CPU production simply of the way their process works. 

[Twolf]

ya, amd kinda blew intel outta the water this year with performance on the cpu's. and it doesn't look like Intel will be catching up anytime soon-ish... at least probably not this year for sure, maybe next year. so yeah, you can find intel cpu's no problem currently as most gamers dream of being a glorified competitive gamer and will take the best they can to get whatever competitive edge they can get. which currently means zen3.

 

and tryin' to say Covid isn't affecting supplies is just kind of... wrong on so many levels. lol. Yes a lot of things are done by machines, but you have to factor in shipping as well. there's a lot of delays in shipping due to closed borders, having to use alternate shipping methods etc. (one example is Japan for instance, standard mail from Japan will not ship to the US, if I order anything from there, the only company I can actually get it from there in under 3 months is if I have it shipped via DHL, this is just one example though and limited to a specific country but it's similar across the globe). There's still also humans that do a lot of the piecing things together after the machines do their work. They can't have a ton of them boxing things up in close quarters so yes, it slows down production, since they can't make things faster than they can be boxed up or they run risk of losing inventory since before they're completely pieced together and boxed up there's a higher risk of damage. There's a lot more human involvement than you would normally assume in this age of machines.

 

Scalpers are real and they will buy up anything and everything they think they can flip for an extra buck. It's just compounded currently with the limited supply, high demand, and the covid situation. Heck some have even posted images of their massive inventories that they managed to get with bot programs just for them to resell them for twice what they paid.

 

Miners... hit or miss, yes there's that guy out there that showed off his massive collection of 30 series graphics cards all chained together just for the purpose of mining. But that's honestly probably still a fairly small niche group.

 

now is that to say the companies themselves aren't also part of the problem? nah, they know that demand is going to be high, every time. I'm fairly sure they help build the hype just to get more sales. as for intentionally restricting supply? errrrm.... probably not. There's only so many factories out there that can make these things, and when there's multiple models involved that spreads things a bit thin on how they allocate which factories are making what. Plus a lot of these places are usually outsourced and making things for multiple companies so they have to figure out how to allocate who is making what for whom as well.

 

There's so many factors at play that it would take a lot of digging to figure out which factories located where are making what and what kind of manpower they can have what type of shipping they have to use, etc. All in all though..... it's still just a great but crappy time to be a PC enthusiast of any kind, as all these "minor" little groups and issues are stacked on top of each other so it compounds the problem with all this brand new amazing tech that's been released this past year.

[Heliian]

Because people are generally lazy and greedy.  Everyone wants to make a quick buck.  

A lot of people are trying due to speculation that their components are in demand, not actual demand.  I'm sorry, I'm not paying 2x MSRP for an "old", used component but feel free to post your dusty 1030 for whatever price you want.

 

Mark my words,  in less than 2 years there will be an absolute glut of components as people get moving again and the next gen crap comes out.  Couple that with the inevitable "collapse" of mining. 

[Dedayog]

On 1/14/2021 at 3:51 PM, Kawsy said:

As title states, what are the reasons behind why most components are out of stock everywhere and the steep price increase of every single component on the market?

We have a global pandemic with millions dead, a little fallout from this maybe?