Nvidia Unlikely To Help Retailers Address GPU Pricing
Mike Sanders / 6 months ago
Nvidia Graphics Cards
With the release of the 20XX series of Nvidia graphics cards, there were more than a few hopes that it would lead to something of a small drop in the price of the prior 10XX range. Sadly, however, 4 months on and this hasn’t happened. While a 1080 is moderately less expensive now, you still will not get much change out of £500.
For retailers, the ‘profit margin’ on a graphics card is usually pretty thin. It’s for this reason that in sales, they’re usually not that heavily discounted. Speaking at J.P. Morgan 17th Annual Tech Forum, however, Nvidia has made it clear that they have no intentions of offering retailers rebates to help them shift the stock.
Many retailers are pushing hard for Nvidia to offer them a rebate. This would allow them to sell the graphics cards at a much lower cost and help them clear the stock. Nvidia has, however, said that while this is an option, they would prefer to look into other areas first.
“There are many different ways in terms of how we are trying to work through the overall inventory. Bundling has been quite popular. We also look in terms of rebates. But you have to be careful with that, and it’s hard to get to because the overall inventory has probably already worked down the channel. We don’t have necessarily the direct contact as we do with the initial part of our sale that we do with AICs.”
It seems, therefore, that high prices for Nvidia graphics cards are set to continue for a little while yet. Let’s at least hope that some decent bundles get thrown in.
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