Gigabyte warns investors of graphics card price drops

[peterb]

Well I'm game... cat what you doing?

I’d be up for it - lots of good pubs in the New Forest!

[Saracen]

Are you dispophobic? Pubs are much nicer post smoking ban. (The ones that have made an effort anyway). Can't beat a good pub lunch on a sunny Sunday walk IMO.

Nah, just .... got out of the habit. First .... no drinking. Second, everybody else drinking. Not my idea of a good time.

That said, I do frequent my local pub periodically .... for a meal. Technically, it's a pub. In reality, it's 95% or more restaurant, and a smidge pub.

[Syphadeus]

I am saying that a fair price is one at which sales of the product are continuing to the manufacturers satisfaction. What that rate needs to be is a business decision, given that the company has a duty to its shareholders to maximise the return on there investment. If the backlog is reducing at a rate that is in keeping with the business plan, then the pricing is about right. If that rate it is too low, then prices may drop further.

Then there is the question of competition - either from another product line (it makes little sense to undercut another product so sales of that suffer) or another manufacturer - when it may be necessary to reduce prices to maintain market share.

The application for the card - whether it is by crypto miners, video editors, gamers or scientific modelling - is irrelevant - all compete pretty much on the same basis, although those buying many cards may get a quantity or trade discount - but that is the same for most commodities.

And your idea of a fair price may be different from mine. I have absolutely no need at all for a high end graphic card - so even if the price dropped to £50, or even lower, I still wouldn't buy one as I have no requirement. It has no value for me. but a fair price for an individual is one that you are prepared to pay for the features it gives you - and that depends on the urgency of need, and financial circumstances as these cards are - for most individuals - discretionary purchases.

With regard to the Phone analogy, the same considerations apply. Basically value of a product is what people are prepared to pay for it. If the rechnology is two years old, does the same job as it did when it was released and there is nothing 'better' (which is also subjective) then its 'value' is the same as it was when it was released. At least it is if people still buy it at that price.

Again I don’t agree. A fair price is the price an individual is willing to pay for what they get in return. That is overly simplistic.

Example Amazon marketplace has unscrupulous sellers on it that sell things at massively inflated prices and of course there are also scalpers that literally make a living off unsuspecting buyers doing this. For instance I saw the other day a listing for 2 little tree air fresheners for £50. For two. Does that mean that if a person decides that those air fresheners are worth it and pays that amount for them that it’s a fair price? The person listing them has to make ends meet. They might have a family that they have to support. They might have a dying relative that they’re trying to get money together for treatment.

Any of those things being true doesn’t make that any fairer a price to pay for a couple of air fresheners. So I don’t give a hoot about shareholders dividends or R&D costs or whatever because beyond a certain amount it’s stops being about a market bearing price and moves into greed territory. At what point that is, is of course very subjective. I suspect for you your bar is significantly higher. Out of interest, given what you’ve said up until now, I’m curious to know what you would define as corporate greed if you’re cucumber cool about all this GPU malarkey. Maybe that is a different discussion.

That said, Nvidias own web store has now lifted the 2 card per customer limit and upped it to 10 and reduced the prices e.g. 1080 FE is now £469.

[CAT-THE-FIFTH]

It looks like the GPU business of Gigabyte has had a significant revenue drop:

https://seekingalpha.com/article/418...ventory-thesis

[3dcandy]

Well I'm game for a hexus put the world to rights meetup - wrong thread now to be fair!
Read the post from cat about Gigabyte. It appears that it's much worse than first predicted. Spoke to a couple of retailers "off the record" and sales have tumbled around 50% it seems