Nvidia have a huge inventory excess problem, 300,000 GPUs returned from a single board partner

[mr moose]

17 minutes ago, Master Disaster said:

Well for one thing you don't know it's 1%, it could be more or less than that but more importantly we don't know if any other partners are now returning unused GPUs to Nvidia too.

 

It's pretty fair to assume most partners are in a similar situation.

All we know is one partner had 300K too much.  Nothing else.  I am not about to make assumptions in order to justify an opinion. Especially not on such low figures.

 

EDIT: even if the top 3 sellers (who sell something like 14M units a year) returned the same amount each,  it would still only equate to about 3% of Nvidia's total yearly sales.  I think people forget that half of Nvidia product is compute sales.

[Cole5]

Aww good old Late Capitalism, just bend over everybody and wait for the next round of fucking  

[Brooksie359]

1 hour ago, Misanthrope said:

Again not really: the demand for GPUs to mine does not exists in a vacuum: You don't just get a GPU to "create" or "find" coins. Those coins have to actually be used for something resembling exchange of goods and services.

 

So the speculation that drives the prices of the crypto coins up and down is directly tied to how desirable the coins are. The reason why cryptos offer coin "rewards" to miners is to have enough capacity for the decentralized transactions. But all of this rest upon whenever or not BitCoin, Ethereum, etc. Are actually desirable for people.

 

So once they become less desirable, then the rewards for investing in mining hardware and energy consumption decrease, so the people mining also decrease and the balance of how many transactions can be supported immediately follows.

 

So assuming ASICs didn't exist right now and considering only economical factors if BitCoin loses confidence in the market and experiences a price decrease then everything tied to BitCoin goes down with it and that includes the desire to mine cryptocurrencies and henceforth the desire to buy these cards from Nvidia and AMD through no increase or decrease in the supply of available cards the demand for them can, and has lowered.

Like I said if demand is independent of gpu supply then having more supply will help regardless of where the demand lies. If demand goes up that doesn't change the fact that using increased supply should help. If they kept the supply the same and demand goes up it would make matters worse than they already were. There was a high demand for their gpus so they produced more gpus to appease that demand and part of that was so that prices would go down. If they wanted to cash in on the mining craze they could have simply sold the gpus for more and received higher margins on all of their gpus instead of letting third party sellers get all the margin. You can talk badly about nvidia all you want but they did sell gpus at msrp directly from their website even when they were selling for about twice that on other websites. At the end of the day the only thing nvidia had control over was supply and the only thing they could do to help decrease the prices of their cards for gamers was to increase it. Yeah demand for crypto currency can affect the price but they have 0 control over that so why does that even matter? 

[Misanthrope]

2 hours ago, Brooksie359 said:

Like I said if demand is independent of gpu supply then having more supply will help regardless of where the demand lies. If demand goes up that doesn't change the fact that using increased supply should help.

So if I can produce 100 cars per month on my factory and push it so I produce 200 would it "help" if my demand went up from 100 cars to 10,000 cars? Those 100 extra cars per month would mean it would take 83 years for me to meet the demand of that one month vs the normal 166 years.

 

At that point who fucking cares?

 

The demand for GPUs went up so much than they technically could have made a veeeeeery small dent on it with extra supply but as I said: so little that who fucking cares.

[D3monw3st]

Little off top topic, I’m currently looking to buy a ASUS Astrid GTX 1080 TI. Is the new lineup going to be released in the next month? I have about 850.00 to spend, not sure what to do.

[Brooksie359]

10 hours ago, Misanthrope said:

So if I can produce 100 cars per month on my factory and push it so I produce 200 would it "help" if my demand went up from 100 cars to 10,000 cars? Those 100 extra cars per month would mean it would take 83 years for me to meet the demand of that one month vs the normal 166 years.

 

At that point who fucking cares?

 

The demand for GPUs went up so much than they technically could have made a veeeeeery small dent on it with extra supply but as I said: so little that who fucking cares.

It still would have helped. Also you have no idea what the demand was for gpus vs production so to make an argument that rests solely on demand being exponentially higher than supply is just dumb. It could have been that demand was twice that of production and that increasing supply but 100% would resolve the issue or it could be that it was 3 times and it would still help. At the end of the day they increased the supply to meet demand and to condemn them for that because they are "trying to profit off of cryptomining" is just absurd. 

[asus killer]

14 hours ago, DildorTheDecent said:

Produced too many cards chips that they don't know what to do with.

 

 

10 hours ago, D3monw3st said:

Little off top topic, I’m currently looking to buy a ASUS Astrid GTX 1080 TI. Is the new lineup going to be released in the next month? I have about 850.00 to spend, not sure what to do.

14 hours ago, DildorTheDecent said:

First world problems.

[Master Disaster]

14 hours ago, mr moose said:

All we know is one partner had 300K too much.  Nothing else.  I am not about to make assumptions in order to justify an opinion. Especially not on such low figures.

 

EDIT: even if the top 3 sellers (who sell something like 14M units a year) returned the same amount each,  it would still only equate to about 3% of Nvidia's total yearly sales.  I think people forget that half of Nvidia product is compute sales.

But you seem perfectly happy to assume the total yearly sales figure?

[Misanthrope]

18 minutes ago, Brooksie359 said:

It still would have helped.

....*sights*

[thorhammerz]

5 hours ago, Master Disaster said:

But you seem perfectly happy to assume the total yearly sales figure?

When NVIDIA sells well over 40 million (this is 2016 data btw... e.g. BEFORE the mining craze) on desktop-grade (read: does not include other money-makers of the server/compute/AI markets) discrete GPUs (does not include GPUs from laptop sales), do you honestly think they give more than a few seconds pause when 0.3 million (that's <= 0.75% btw) low-end cards are returned? 

 

Worst case scenario (for the poor consumer, at least), they will make another low/mid SKU for either this generation's 10xx cards, or an extra low-tier SKU in next generation's cards (11xx).

(Image taken from @M.Yurizaki 's post on page 1, you can find the original anandtech article linked in his post).
 

[Morgan Everett]

2 hours ago, thorhammerz said:

When NVIDIA sells well over 40 million (this is 2016 data btw... e.g. BEFORE the mining craze) on desktop-grade (read: does not include their real money-makers of the server/compute/AI markets) discrete GPUs (does not include GPUs from laptop sales), do you honestly think they give more than a few seconds pause when 0.3 million (that's <= 0.75% btw) low-end cards are returned? 

 

Worst case scenario (for the poor consumer, at least), they will make another low/mid SKU for either this generation's 10xx cards, or an extra low-tier SKU in next generation's cards (11xx).

(Image taken from @M.Yurizaki 's post on page 1, you can find the original anandtech article linked in his post).
 

Just a minor correction: the gaming segment is for Nvidia the largest money maker, at least in revenue terms. 

[thorhammerz]

7 minutes ago, Morgan Everett said:

Just a minor correction: the gaming segment is for Nvidia the largest money maker, at least in revenue terms. 

Thanks, post edited to reflect that.

[CTR640]

16 hours ago, D3monw3st said:

Little off top topic, I’m currently looking to buy a ASUS Astrid GTX 1080 TI. Is the new lineup going to be released in the next month? I have about 850.00 to spend, not sure what to do.

If you are not sure what to do, give it to me. Of not, don't waste that cash on something that's still damn expensive for a 2 years old technology.

I got €2450 to spend but I'm not this retarded to waste it on a €900 GTX 1080Ti.

[mr moose]

9 hours ago, Master Disaster said:

But you seem perfectly happy to assume the total yearly sales figure?

I don't have to assume that, It is a known figure.

https://www.anandtech.com/show/12107/q3-2017-graphics-cards-shipments-hit-5-year-high

https://www.anandtech.com/show/10864/discrete-desktop-gpu-market-trends-q3-2016/4   <-- even in 2016 Nvidia shipped 25M discrete desktop GPUs in only 3 quarters.

AIB board partners ship on average 10-15M units a quarter and nvidia have 60+percent share. 

 

 

[spartaman64]

On 6/20/2018 at 10:37 PM, mark_cameron said:

Doing that is ILLEGAL under competition/anti trust law.

 

Especially if more than one company in a market does a 'concerted practice' which causes consumers to pay more than they otherwise would.

Diamonds are a perfect example of this. If it is illegal nobody is enforcing it

[spartaman64]

On 6/21/2018 at 1:31 PM, thorhammerz said:

Shhh, gotta spin the story and make public enemy #2 NVIDIA look bad! 

I don't think this makes Nvidia look bad. In fact it does the opposite if anything. Good noble hearted Nvidia tried to ramp up production to get gpus to gamers but end up getting screwed when crypto demand went down. Very sad story *sad violin music

[Mihle]

Send them to me. Problem solved.

 

It would be a YouTube channel just about using them up for ransom stuff over probably some years.

 

I would make videos about destroying some of them, make a wall out of some of them and maybe a table and so on. With ofc really clickbait titles and thumbnails.

[Trik'Stari]

On 6/20/2018 at 1:45 PM, Master Disaster said:

 

I'd imagine someone paid a lot of money has analysed everything and concluded that the ROI isn't there and this would lose them money.

 

They've already invested by making the product. They could sell it off fast, or sell it off slow but never actually sell off all of it because of people waiting for a price drop.

 

They could sell the new ones and these old ones at a discount, or wait and continue selling the old ones at "regular" pricing, giving AMD a chance to actually catch up with them in the meantime.

 

It would be surprising to see AMD catch up, it'd be equally surprising to see Nvidia sell these off at a discount, even to system builders.