The ugly pricing scheme of NVIDIA in Europe

[Vishera]

For some reason NVIDIA adjusts pricing in Europe in according to inflation, but in other regions such as North America it doesn't.

It's insane that the RTX 4090's MSRP in Europe is 1959€, and not only that but they are actually being sold starting at 2100€ (AIB models), or that the RTX 3060 Ti is priced at 519€.

 

[Alinz]

This has to do with the tax european consumers pay for these kinds of products I believe.

 

 

[Vishera]

7 minutes ago, Alinz said:

This has to do with the tax european consumers pay for these kinds of products.

 

 

It's not that, NVIDIA adjusted their prices according to inflation.

A 3060 Ti costs more euros than the launch price of the RTX 2070.

It's their adjustment of price to inflation, not the tax.

[Pixelfie]

It's the same MSRP, but it includes VAT and USD to euro conversion.

 

Let's say your country has 20% VAT. It would look something like this.

1599 USD = €1634,59. 1634,59 x 1.20 = 1961,50

 

Edit: the USD also went up a lot in value. Now $1 USD is worth more than €1, where a few months ago $1 was worth like €0,85

Edited October 14, 2022 by Pixelfie

[Vishera]

Just now, Pixelfie said:

It's the same MSRP, but it includes VAT and USD to euro conversion.

 

Let's say your country has 20% VAT. It would look something like this.

1599 USD = €1634,59. 1634,59 x 1.20 = 1961,50

This just proves it's the inflation,

Look how much the Euro was worth 2 or 3 years ago in relation to the USD.

[venomtail]

7 minutes ago, Vishera said:

This just proves it's the inflation,

Look how much the Euro was worth 2 or 3 years ago in relation to the USD.

Yea sure it proves that there is inflation but it doesn't prove that it's only inflation.

[Alinz]

50 minutes ago, Vishera said:

It's their adjustment of price to inflation, not the tax.

In the EU we pay 21% VAT over consumer electronics, compare that to the US where it is 2.9 to 7.25 percent at state level. (don't know that for sure, googled results)

 

So ye, if true we pay way more in tax.

[porina]

Currency exchange changes are killing in UK/EU right now. Nvidia will think in USD first. Bad rates = bad local pricing.

 

I think Intel also hit hard with that. In US A770 is cheaper than 3060, but in UK 3060 is cheaper than A770. The difference being 3060 in stores now were likely priced before the changes, but A770 being new was set in price more recently. Do not expect next gen AMD to be immune from this effect either.

[LAwLz]

Conversion rates and inflation are two different things...

[DigitalGoat]

The buying power of the £ abroad is lower than it was only a few months ago therefore you need more pounds to purchase equivalent products. If you want to blame anyone then blame the current government for driving inflation up and exchange rates down (a result of investors loosing confidence in the £'s stability, I believe), since Truss and her cronies took over even the bank of England has given up on them.

 

Add to all this, Nvidia is a company, it is in business to make a profit, more profit == better, like every other company. If there is a way to make more profit then a company will take it, thats just the way things work.

Companies are not your friends.

[Vishera]

3 minutes ago, LAwLz said:

Conversion rates and inflation are two different things...

But the two can overlap,

Inflation of currencies is a thing.

Each currency has it's own inflation/deflation rates.

20 minutes ago, porina said:

Currency exchange changes are killing in UK/EU right now. Nvidia will think in USD first. Bad rates = bad local pricing.

 

I think Intel also hit hard with that. In US A770 is cheaper than 3060, but in UK 3060 is cheaper than A770. The difference being 3060 in stores now were likely priced before the changes, but A770 being new was set in price more recently. Do not expect next gen AMD to be immune from this effect either.

This sucks...

[Roswell]

 

2 hours ago, Vishera said:

For some reason NVIDIA adjusts pricing in Europe

That’s exactly the price it should be. 
 

EUR to USD is nearly 1:1. MSRP is $1600 USD. Add your 21%~ VAT and you get the price you’re complaining about.

 

What do you want Nvidia to do? Give you a special discount because your local currency is dropping in value? That would make zero business sense.

[Holmes108]

Conversion and built in tax are the biggest factors, but it's also hard to compare region to region despite peoples best efforts. It's too simplistic to look at only those two factors. It's also an entirely different economy. What's the average salary over there? How far does a dollar go? And of course, what will the market bear. It's always complicated. 

[HeyYouOK?]

I'm so glad people are talking about the price differences like its Nvidia's fault that the USD is currently stronger than the EURO. So sick and tired of people claiming its Nvidias fault when its just not a great economy. Just do research FFS.