Gigabyte warns investors of graphics card price drops

[HEXUS]

Says it expects graphics card prices to drop as much as 10 per cent this month.

Read more.

[3dcandy]

About time to be fair - been overpriced for far too long
Next up DDR4

[darcotech]

Prices are not going down.
They are going back to the level they were supposed to be before the greed hit them all.

it is awful feeling to know how we depend on the greed of somebody else to have the things in our life.

[Iota]

49 per cent margin

So they have much more room to drop pricing than just 10%. Another reason to not buy now then.

[MajorZod]

Prices are not going down.
They are going back to the level they were supposed to be before the greed hit them all.

it is awful feeling to know how we depend on the greed of somebody else to have the things in our life.

Just this.
Waiting for one of the manufacturers/resellers to come out with "Lets make gaming great again" when they announce they are finally going to stop ripping off gamers.

[OilSheikh]

Time to celebrate!

[MajorZod]

Great timing for a "price drop"... has nothing to do with the mass amount of cards that got sent back and the looming 11 series cards.

Now lets see how long it takes for the extra 30% they added to the cards to come of as "extra savings".

[philehidiot]

They've screwed themselves. They priced average consumers out of the market by price gouging and now they're starting to suffer.... slightly. I suspect that this will lead to Nvidia delaying release of its next GPU in order that prices may normalise and to allow old stock to be sold off.

I'm sorry but I have zero sympathy here. They went WAY too far. And when it looks like they're going to be sitting on old, devalued inventory, they can only bring themselves to drop the price 10%. If I were them I'd be dropping the price by 25%, maybe even 30%. Use the rumours that Nvidia is delaying rollout of next gen and undercut the competition to the point where you shift a load of stock and make a killing in a way that would be good for you and the consumer.

[peterb]

About time to be fair - been overpriced for far too long
Next up DDR4

How would you determin a 'fair' price? Manufacturers need to make a profit to pay the owners of the company (the shareholders) as well as investing in the business for the next generation of products.

Prices are not going down.
They are going back to the level they were supposed to be before the greed hit them all.

it is awful feeling to know how we depend on the greed of somebody else to have the things in our life.

What is this 'supposed to be' price? How do you determine what they are supposed to be? Cryptocurrency miners were prepared to pay the market price, and companies are responsible to the shareholders (who own the companies) to maximise the return on the investment.

[LSG501]

How would you determin a 'fair' price? Manufacturers need to make a profit to pay the owners of the company (the shareholders) as well as investing in the business for the next generation of products.


What is this 'supposed to be' price? How do you determine what they are supposed to be? Cryptocurrency miners were prepared to pay the market price, and companies are responsible to the shareholders (who own the companies) to maximise the return on the investment.

I'd say the same or lower than the price they were on release.... 10 series is likely 'last gen' fairly soon so I would expect them to be below the original rrp (that's clearly a good enough price to make a profit) at the very least.

My gtx1060 6gb, which was released in 2016, is still retailing £40+ more than what it was when I bought it (roughly 4 months after release), and we can't really blame that on brexit as the vote and impact had happened by the time I bought it. Obviously there's been the manufacturer/sellers greed due to miners snapping them up but that's not the case now so why is it that the cost is still higher than release (not just in the UK either).

I'd also expect that larger companies will be buying memory modules in bulk at a set price rather than dealing with the fluctuations that we have to contend with so that would have been taken into account on setting the original price imo.

[CAT-THE-FIFTH]

How would you determin a 'fair' price? Manufacturers need to make a profit to pay the owners of the company (the shareholders) as well as investing in the business for the next generation of products.



What is this 'supposed to be' price? How do you determine what they are supposed to be? Cryptocurrency miners were prepared to pay the market price, and companies are responsible to the shareholders (who own the companies) to maximise the return on the investment.

Sticking to RRP would be a start,and with a weaker GBP I could get graphics cards much cheaper over a year ago.

RAM prices have almost tripled since last year. This does not include the fact the GBP to USD exchange rates are better this year:

https://www.xe.com/currencycharts/?f...to=USD&view=2Y

This has help mask some of the true extent of the price increases.

This kit cost me £56 last year:

https://www.amazon.co.uk/Corsair-CMK...hz+c14+corsair



Now it is around £151.

This has meant I have seen less people around me bothering to upgrade,since they might as just hold onto what they have and wait until pricing gets a bit saner or if they are spending decent money,wait until some new tech comes along(DDR5?).

It also means it has impacted what I will get as an upgrade to an increasingly older system,which has been impacted to a degree by the Spectre/Meltdown patches. Ryzen likes faster RAM than Intel system,and since higher speed RAM is now approaching £200,it means I might as well get an Intel system instead. Some of this RAM is close to £130 more than it was at one point. It actually makes Ryzen worse value for me now!

It reminds me of what happened when I built my first Core2 system,DDR2 pricing was very high,and after the RAM companies had to actually pay some fines after prior price fixing,I saw the DDR2 prices collapsed - so not going to buy RAM at a peak again,since it was £150+ I wasted at the time.

Now put that in context to other electronics,I have seen things like TVs,etc not doing the same.

Edit!!

The pricing also has had an impact on Chinese companies as China imports the most DRAM in the world:

https://digitimes.com/news/a20180614PD212.html

Hence Chinese regulators are investigating DRAM companies for price fixing with potentially upto $8 billion fines!

Its also sped up investment by the Chinese government to make its own DRAM too,which is not what these companies really want to happen.

[DanceswithUnix]

So they have much more room to drop pricing than just 10%. Another reason to not buy now then.

Not really, you need to pay for up front overheads like R&D out of that margin. I have worked for companies with a 30% margin that struggled to stay afloat, though they didn't have the sales volumes of someone like Gigabyte.

Personally, I just cracked. The uncertainty of when 7nm parts will come out in sufficient volume that they will be affordable, I guessed it will be a while, and with prices and availability of cards seeming to be all over the place still I saw something which whilst far from a bargain I felt I could stomach the price as I have needed a card for far too long.

In case anyone is interested, for various reasons I wanted a Vega, I had £80 of Amazon vouchers so I wanted to buy from them, I went for: https://www.amazon.co.uk/ASUS-STRIX-...dp/B078TK7PQW/
There was a cheaper card on Overclockers, but it didn't look quite as good.

[philehidiot]

I would have thought R&D costs, etc should have been paid by this point in the product lifecycle. Bear in mind we're expecting a new card shortly.

[3dcandy]

How would you determin a 'fair' price? Manufacturers need to make a profit to pay the owners of the company (the shareholders) as well as investing in the business for the next generation of products.



What is this 'supposed to be' price? How do you determine what they are supposed to be? Cryptocurrency miners were prepared to pay the market price, and companies are responsible to the shareholders (who own the companies) to maximise the return on the investment.

Answered by others before me but my answer is roughly the same. The prices have risen whilst in real terms the cost have fallen. Yes companies have to answer to shareholders but admitting they have had a huge amount of cards returned because they overestimated is as bad for shareholders to hear as having to sell cards cheap

[DanceswithUnix]

I would have thought R&D costs, etc should have been paid by this point in the product lifecycle. Bear in mind we're expecting a new card shortly.

R&D costs of the next cards have to be paid for out of current cards, or you are working on a basis of debt which means paying interest which means you need an higher margin.

[philehidiot]

R&D costs of the next cards have to be paid for out of current cards, or you are working on a basis of debt which means paying interest which means you need an higher margin.

That makes sense.