GPUs being sold in China BELOW MSRP

[BoredSloth]

Summary

If GPUs are being sold in China below MSRP, what does that mean about the prices of new stock?

 

My thoughts

By banning the mining and owning of cryptocurrency in China, miners have begun liquidating their hardware hoping to recover some of their costs. Taking this thought forward

• Gamers suddenly have more access to hardware they have been waiting for. 
• Remembering the times where we weighed the pros and cons of buying used hardware. For e.g. GTX 1060 6 GB cards are currently available at CAD 300. Nice if you compare the performance to a GTX 1650 (which costs about the same). Bad as the card is over 5 years old and we can never determine how the card was used or how many hands it has changed since it was first sold
• Are there new graphics cards currently available in China? If so, what are the prices that they are being sold for? Interested to know if they are being discounted too
• What will happen first? Nvidia and  AMD flooding the market causing huge losses to scalpers and miners? I would love to see this. The companies one day just dropping a bomb supply. OR Miners liquidating their hardware causing a sudden drop in new GPU sales. The companies will quickly have to come to MSRP or discount them even further to get rid of inventory. 

Memory Express currently has the 6700XT available for CAD 1035. The interesting bits are that it also says "CAD 75 off from their original pricing of CAD 1110". And their buy limit has increased to 2.

[dizmo]

Unfortunately this isn't really news, and has already been covered. You're asking a lot of questions which makes it even odder to post it in the news section.

As for the questions you raised, these are being sold in bulk (mostly), and they're somewhat heavily used.

Not sure why you think Nvidia and AMD would or can flood the market. There's more reasons than just miners for the card shortages. Nvidia and AMD aren't really making a ton from people selling the cards above MSRP.

[Spotty]

Moved to graphics cards. While you're welcome to share your opinions they are not news. Please follow the Tech News posting guidelines when posting in the Tech News section, which is for discussion of tech news articles.

[Chris Pratt]

1 hour ago, BoredSloth said:

If GPUs are being sold in China below MSRP, what does that mean about the prices of new stock?

Absolutely nothing. They still cost more to make because components cost more right now. AIBs still have to charge more than Nvidia's "MSRP", which isn't realistic anyways, and in the U.S., you've still got a 25% tarriff on top.

[KaTaLy5t-87]

9 hours ago, BoredSloth said:

Summary

If GPUs are being sold in China below MSRP, what does that mean about the prices of new stock?

 

My thoughts

By banning the mining and owning of cryptocurrency in China, miners have begun liquidating their hardware hoping to recover some of their costs. Taking this thought forward

• Gamers suddenly have more access to hardware they have been waiting for. 
• Remembering the times where we weighed the pros and cons of buying used hardware. For e.g. GTX 1060 6 GB cards are currently available at CAD 300. Nice if you compare the performance to a GTX 1650 (which costs about the same). Bad as the card is over 5 years old and we can never determine how the card was used or how many hands it has changed since it was first sold
• Are there new graphics cards currently available in China? If so, what are the prices that they are being sold for? Interested to know if they are being discounted too
• What will happen first? Nvidia and  AMD flooding the market causing huge losses to scalpers and miners? I would love to see this. The companies one day just dropping a bomb supply. OR Miners liquidating their hardware causing a sudden drop in new GPU sales. The companies will quickly have to come to MSRP or discount them even further to get rid of inventory. 

Memory Express currently has the 6700XT available for CAD 1035. The interesting bits are that it also says "CAD 75 off from their original pricing of CAD 1110". And their buy limit has increased to 2.

I don't believe AMD or Nvidia have the manufacturing capacity to flood the market with anything. Looking at the trickle of new GPU stock making it's way to market it seems to me that pretty much EVERYTHING anyone can manufacture right now is being sent out to market and snapped up as soon as it goes out. For anyone to flood the market, they would need a fab to come online which takes years to achieve and they will be reluctant to do because of the cost and time involved in setting up, this increased demand could dry up and their shiny new fab now has nobody to sell their products to.

 

The only other solution which would never happen is to stop shipments completely to allow stock to build before then flooding the market but that would be extremely unpopular on many levels. Most importantly for AMD/Nvidia they would need to take a cash flow hit in the short-term before making a large windfall when they ship everything at once. Corporations and their investors LOVE consistent cashflow and they LOVE selling as much as they can produce, it means the bills get paid, the lights stay on and the coffers are stuffed with sweet, sweet cash that can help fund development.

 

As far as the secondary market for ex-mining GPUs, I would steer clear of anything I suspected may have been used for mining. Large scale mining operations will run these cards to within an inch of their life, at temperatures just below max because let's face it, cooling costs money and that hurts their bottom-line. They'll run as hard and as hot as they possibly can for as long as they possibly can to get the best return on investment possible. Think of buying a used car that has been driving at its maximum speed since it left the dealership and now has 500,000miles on it after a year. It wouldn't appeal to many people unless they wanted something really cheap to keep them going for a while.

 

Mining isn't going away (yet), it's just moving to a "more palatable" model. I heard just yesterday that a massive mining operation was moving to Canada from China because Canada produces lots of renewable energy. Run your mining op on renewables and it will fly under the radar for longer. "Mining is bad because it uses fossil fuel fired power!". "Well actually my op runs on 100% renewable energy and I have a garden on the roof for the bees to feed on the flowers and I donate some of my earnings to the local animal shelter". Well that's fine why didn't you say, mine all you want!

[Mark Kaine]

Thats cool. But Im not in china so…

 

 

Also just looked, 3080ti Vulcan OC, 2185 Euros on ali express…

 

i doubt this is anywhere near "msrp" 

[BoredSloth]

On 7/21/2021 at 5:59 AM, KaTaLy5t-87 said:

The only other solution which would never happen is to stop shipments completely to allow stock to build before then flooding the market but that would be extremely unpopular on many levels. Most importantly for AMD/Nvidia they would need to take a cash flow hit in the short-term before making a large windfall when they ship everything at once. Corporations and their investors LOVE consistent cashflow and they LOVE selling as much as they can produce, it means the bills get paid, the lights stay on and the coffers are stuffed with sweet, sweet cash that can help fund development.

 

I agree 100% with what you said. NVidia is a publicly traded company and hence cannot afford to play the game of holding cards. But does the video mentioned above state exactly the opposite? This was exactly my thought on why I first thought there might be a large dump. 

 

[Lurick]

1 hour ago, BoredSloth said:

I do not know the forum rules for posting links to videos on YouTube. 

The title of the video is "Nvidia RTX 3060 Flood in August: Drowning RX 6600 XT & Manipulating Supply till Lovelace" by Moore's law is dead.

Links are completely fine so long as you're not advertising a channel or something in the posts. IIRC you can post your channel (if you have one) in status updates though but beyond that video links that aren't NSFW or something crazy insane/illegal are fine