RTX below 3% margin for Manufacturers, also possible price hike incoming

[DrMacintosh]

3 minutes ago, Rattenmann said:

You know, I don't want to sound like I am attacking you here, so please bear that in mind.

Just finding it funny that Mr. Apple himself is talking about stuff being overpriced. ;-)

I think the part you were supposed to take away was that GPU prices are probably going to increase. So if you were in the market for a GPU, or really any PC component, you should buy it immediately. 

[cj09beira]

1 hour ago, Rattenmann said:

Same thing.

Margin always includes all slices of the pie.

 

You can't reduce the 40 bucks, without reducing the 3% figure. They are both the same, one is absolute for the product, the other is relative to the product. But changing one, will change the other.

wrong.

aibs having a 3% margin means that they sell the cards at 3% higher prices than what their costs are, now they dont sell the cards at retail prices they sell it at sub resale prices to the distributors that then sell at resale prices to the newegg's of the world, they are the ones that sell at msrp,

so their 3% is of a much lower price than what you would pay at amazon

[Tech Enthusiast]

2 minutes ago, cj09beira said:

wrong.

aibs having a 3% margin means that they sell the cards at 3% higher prices than what their costs are, now they dont sell the cards at retail prices they sell it at sub resale prices to the distributors that then sell at resale prices to the newegg's of the world, they are the ones that sell at msrp,

so their 3% is of a much lower price than what you would pay at amazon

If a manufacturer claims 3%, then why would I care what the final price is? We are not talking about any other parts of the chain here, only this one part. And this one part claims 2.8% as a worst case example.

If the final seller has to pay for shipping or whatever, the 2.8% remain 2.8%, as the manufacturer does not pay those fees.

 

You are however correct if you are talking about the part in the chain behind the manufacturer. But they will have a different margin % as well. They could have 10% if they just increase the final price a bit. Or any other number you can imagine. We don't have any data or information about any of this. So any speculation is just that, speculation.

[cj09beira]

4 minutes ago, Rattenmann said:

If a manufacturer claims 3%, then why would I care what the final price is? We are not talking about any other parts of the chain here, only this one part. And this one part claims 2.8% as a worst case example.

If the final seller has to pay for shipping or whatever, the 2.8% remain 2.8%, as the manufacturer does not pay those fees.

 

You are however correct if you are talking about the part in the chain behind the manufacturer. But they will have a different margin % as well. They could have 10% if they just increase the final price a bit. Or any other number you can imagine. We don't have any data or information about any of this. So any speculation is just that, speculation.

my point is very simple their 3% is not 3% of 1200 dollars 

[Tech Enthusiast]

5 minutes ago, cj09beira said:

my point is very simple their 3% is not 3% of 1200 dollars 

If the product is sold by the manufacturer for 100$ and their margin is 3%, their profit is 3$, meaning it was 97$ to produce and ship to the next party (this can mean shipping is factored in, or the other party pays for shipping, that does not matter). 

 

Really unsure what you are suggesting here tbh. we may just not get each other's point.

[cj09beira]

1 minute ago, Rattenmann said:

If the product is sold by the manufacturer for 100$ and their margin is 3%, their profit is 3$, meaning it was 97$ to produce.

Really unsure what you are suggesting here tbh. we may just not get each other's point.

ya .... 

some comments back someone was saying that the aibs are probably getting 40 bucks per card but for that they need to sell the cards at msrp and they dont so they probably get lot lower amount per card my bet would be 27 bucks per card or even lower (assuming ~900 per card)

[Jito463]

1 hour ago, DrMacintosh said:

Buy current gen GPUs now before the tariffs hit

The more you buy, the more you save.

[PlayStation 2]

Would any sort of tariff affect how much the card is made for from an AiB perspective?

[DrMacintosh]

7 minutes ago, Jito463 said:

The more you buy, the more you save.

I mean, if you’re in the market right now, it’s actually a true statement. 

[Amazonsucks]

5 hours ago, i_build_nanosuits said:

So these cards cost 1200$ at retail but nobody is making a penny on them...yeah sure...go f*** yourself.

"Nowadays people know the price of everything and the value of nothing." -Oscar Wilde

 

Yeah i can see consumers getting all bent out of shape when they have to pay more than theyre used to. Its the response of people who dont understand why the stuff they typically buy is dirt cheap. Dont understand market forces, currency manipulation, dumping...

 

Or how the tarriffs are being used as an excuse across multiple industries but only ACTUALLY increased cost to manufacture some things by a few % at most.

[dtaflorida]

6 minutes ago, VegetableStu said:

I'm gonna hold on to my 1060 for now ._. don't know what to tell my friend who's planning a build with a 1070. (should they order one now?)

I wouldn't put it past the middlemen and retailers to scream 'tariff' and rake in more $ on stock that is already in the US or on the shelves. 

[Brooksie359]

1 hour ago, DrMacintosh said:

I think the part you were supposed to take away was that GPU prices are probably going to increase. So if you were in the market for a GPU, or really any PC component, you should buy it immediately. 

So buy the rtx cards as soon as possible before the price goes up. I think I get what you're saying. 

[yian88]

ofcourse the vendors margin is <3% when nvidia is producing 2080Ti for 500$ and selling for 1200$ their margins are over 50% and some leftover for the rest, ofcourse everyone believes unproven rumours of 1000$ 2080ti manufacturing bullshit

remember how intel's top of the line 6-8 core extreme parts were 1000$+ and somehow magically after AMD is back in the game they sell 6 core i5's for 250$? yeah same story on nvidia RTX

[Brooksie359]

12 minutes ago, Amazonsucks said:

"Nowadays people know the price of everything and the value of nothing." -Oscar Wilde

 

Yeah i can see consumers getting all bent out of shape when they have to pay more than theyre used to. Its the response of people who dont understand why the stuff they typically buy is dirt cheap. Dont understand market forces, currency manipulation, dumping...

 

Or how the tarriffs are being used as an excuse across multiple industries but only ACTUALLY increased cost to manufacture some things by a few % at most.

Yep put caselabs went out of business and alot of other companies have laid off a bunch off workers because of tariffs but yeah it doesn't matter? Let's be honest here and state the obvious. You or I have no clue as to how much these tariffs affect the bottom line of any individual company.

[DrMacintosh]

1 hour ago, Brooksie359 said:

So buy the rtx cards as soon as possible before the price goes up. I think I get what you're saying. 

I clearly said buy current gen cards in my initial comment. 

[Guest]

They probably think they can get away with it due to the inflation that previously occurred due to crypto and hope to keep prices there.

[TechyBen]

8 hours ago, asus killer said:

2.8% margins. I smell bullshit. 

No idea how true, but with companies that "did not like us", when I was in sales, at least to our internal quoting system, 3% margine was not impossible. It was often the gadget/PC stuff too! We would only make profit on extra purchases, cables and virus scanners, extra insurance etc. However, I guess we made a little on bulk orders online.

[Misanthrope]

Sounds nuts: I think Burke honestly misunderstood and that's an estimation of what margin they're going to have after they cover Trump's new tarifs.

 

If they went from 20% down to 3 to 5% as a result of a new tariff then I'd buy it which means we should expect pricing to be adjusted 20 to 30% up.

 

And honestly I don't even think we can blame Nvidia for not revising their MSRP either here they're just victims of the shall we say, at the very least supremely naiive idea than this is going to enable semiconductor business to be moved over to the US but beyond that I wont (and suggest nobody does) discuss things further, it's just what it is and beyond that it goes into politics.

[mynameisjuan]

2 hours ago, yian88 said:

remember how intel's top of the line 6-8 core extreme parts were 1000$+ and somehow magically after AMD is back in the game they sell 6 core i5's for 250$? yeah same story on nvidia RTX

Supply and demand times competition. I dont see the problem here

[Brooksie359]

3 hours ago, DrMacintosh said:

I clearly said buy current gen cards in my initial comment. 

I clearly was making a joke

[Blademaster91]

6 hours ago, Brooksie359 said:

Yep put caselabs went out of business and alot of other companies have laid off a bunch off workers because of tariffs but yeah it doesn't matter? Let's be honest here and state the obvious. You or I have no clue as to how much these tariffs affect the bottom line of any individual company.

The tariffs had nothing to do with caselabs closing, caselabs were already in trouble since they lost a significant amount of orders while the tarrifs in the news was a convenient time for them to shift the blame. Companies should be going to Taiwan or stop using low quality steel and find another source instead of trying to find excuses.

[ZacoAttaco]

So did NVIDIA under price the cards on pre-order? I don't know what previous generations are but for less than 3% margin it's not very encouraging for AIB partners to even support the RTX series.

[S w a t s o n]

There's no fucking way it costs novideo anywhere close to $900 to make those cards, I honestly feel like they are trying to muscle out the AIBs with the new aftermarket quality FE edition and this pricing

[pas008]

8 minutes ago, S w a t s o n said:

There's no fucking way it costs novideo anywhere close to $900 to make those cards, I honestly feel like they are trying to muscle out the AIBs with the new aftermarket quality FE edition and this pricing

rnd and then the wafers along with gddr6

so how do you know what it actually costs?

and the cost of adding in those features that need continuous work now

[S w a t s o n]

7 minutes ago, pas008 said:

rnd and then the wafers along with gddr6

so how do you know what it actually costs?

because 12nm (16nm) wafer costs are known and gddr6 is only 20% more expensive than GD5X. They could literally afford to put HBM2 on this card