54.4% Margins - Nvidia

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3DVagabond

Lifer
Aug 10, 2009
11,951
204
106
How has this thread gone on so long? Who friggin cares that Nvidia makes a good profit? Good for them! That is what makes this country the best in the world.

There are plenty of countries around the world that practice socialism if that is what floats your boat.

Nobody is calling for socialism. Quit being ridiculous. We have a duopoly here and abuses are possible.
 

lilrayray69

Senior member
Apr 4, 2013
501
1
76
Wow poor AMD, says they've been at as much as -36% margins. How do they even keep operating let alone make good cards?
 

Cerb

Elite Member
Aug 26, 2000
17,484
33
86
Wow poor AMD, says they've been at as much as -36% margins. How do they even keep operating let alone make good cards?
We, in the general sense, think we need AMD, to keep competitor's prices from rising too much, which they have been known to do. So, AMD will be able to ride their money losing train right into backruptcy/liquidation, should it come to that. Those with financial interests are hoping that RR can pull them out (or make a good deal selling off parts of AMD, in which they make money back), but the company needs to be able to survive for a few more years, before any major changes he has made, good or ill, can be allowed to play out.
 

lilrayray69

Senior member
Apr 4, 2013
501
1
76
Oh yeah I personally like AMD. Pretty good quality products at a good price. Hope they stick around. I guess they're hoping to see money flow from the upcoming consoles which they are reportedly powering both of with the Radeons
 

Shmee

Memory & Storage, Graphics Cards Mod Elite Member
Super Moderator
Sep 13, 2008
7,736
2,711
146
Back on subject please everyone. This is about nvidia profits, not quality of life ranking among nations.

I do believe that nvidia should make good profits, but I would also support government subsidies, or whatever is necessary, to ensure competition and relatively low prices.
 

DooKey

Golden Member
Nov 9, 2005
1,811
458
136
Back on subject please everyone. This is about nvidia profits, not quality of life ranking among nations.

I do believe that nvidia should make good profits, but I would also support government subsidies, or whatever is necessary, to ensure competition and relatively low prices.

LOL, you would support government subsidies for a luxury product? You realize government subsidies come from taxes so the only people getting the subsidy are those who don't pay income tax. Have to love you redistribution of wealth people.

edit: My bad, I see you are from cali.
 

blackened23

Diamond Member
Jul 26, 2011
8,548
2
0
LOL, you would support government subsidies for a luxury product? You realize government subsidies come from taxes so the only people getting the subsidy are those who don't pay income tax. Have to love you redistribution of wealth people.

edit: My bad, I see you are from cali.

Regardless of your political stance, your post is just disgusting. Aside from you completely misinterpreting his post, you resort to broad insults about an entire demographic of people. Tell us more about California. I do understand that old white racist men tend to despise it? Not that i'm implying you're anything like that. I will say you share more in common with FX1 than you realize, resorting to broad insults and rants instead of arguments with any substance.

Can this thread be locked before it goes full P+N status?
 
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Cloudfire777

Golden Member
Mar 24, 2013
1,787
95
91
We, in the general sense, think we need AMD, to keep competitor's prices from rising too much, which they have been known to do. So, AMD will be able to ride their money losing train right into backruptcy/liquidation, should it come to that. Those with financial interests are hoping that RR can pull them out (or make a good deal selling off parts of AMD, in which they make money back), but the company needs to be able to survive for a few more years, before any major changes he has made, good or ill, can be allowed to play out.

They, AMD, have a horrible price model that just isn`t working. They need to charge more price for the GPUs, use those money on R&D and bigger driver team. Hopefully that will leave less of the driver issues that keep popping up in the media, giving them better reputation. Not to mention that AMD need to hire a better marketing team. Nvidia is killing them in that area, since they are a lot more active in the OEM space and selling more products there.

AMDs GPU is just fine. Their whole strategy from a finished product to the customer is just stupid. Sure they can lure customers in with free CD-keys for big games, but that is lowering their margins.

Long story short: Change strategy, become more like Nvidia. AMD fanboys can cry all they want, but is a dead company really any better than higher prices? 7990 price was a good start in the right direction, however the timing was horrible since GTX 690 have been there for over a year.
 
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DooKey

Golden Member
Nov 9, 2005
1,811
458
136
Regardless of your political stance, your post is just disgusting. Aside from you completely misinterpreting his post, you resort to broad insults about an entire demographic of people. Tell us more about California. I do understand that old white racist men tend to despise it? Not that i'm implying you're anything like that. I will say you share more in common with FX1 than you realize, resorting to broad insults and rants instead of arguments with any substance.

Can this thread be locked before it goes full P+N status?

I misinterpreted nothing. He plainly stated he supported subsidies and this thread is about video cards. I insulted no one, subsidies as he espoused for a luxury item help no one but those who don't pay income taxes and this is beyond dispute, those who pay the taxes pay for their own subsidy.

I suggest you look up California and how much people pay in taxes there. You might also want to look up who controls the government and you might also want to look up statistics on their budget and whether it is sustainable.

As for your comments regarding racism I won't even go there. Nothing in my post was remotely racist. Every race is a member of the class that doesn't pay income taxes. Are you going to call me a Nazi next? Take your ad hominem attack somewhere else.
 

VirtualLarry

No Lifer
Aug 25, 2001
56,554
10,171
126
If consumers are willing to pay premiums for NV's products, then NV deserves the high profit margins. In my eyes, it seems the trend is more expensive GPUs from both camps in general. $400-500 mid-range with $700-1000 now reserved for flagship cards, or an increase from $250-300 and $500-650 we previously had.

That strikes me as somewhat insane. I remember when the HD4850 512MB was mid-range, and it was released at $200 retail. I paid $150 for mine, BB had a 25% off sale on VisionTek cards, the week before the card was supposed to be released. Some stores got the cards in early, and could be convinced to let you buy them.

I paid $190 ea for my Gigabyte WindForce GTX460 1GB OC cards.

That's the price range that I am comfortable paying. NOT $400-500. That's nuts. If video cards alone are going to cost as much or more than a high-end console, I'll switch to consoles.
 

Erenhardt

Diamond Member
Dec 1, 2012
3,251
105
101
That strikes me as somewhat insane. I remember when the HD4850 512MB was mid-range, and it was released at $200 retail. I paid $150 for mine, BB had a 25% off sale on VisionTek cards, the week before the card was supposed to be released. Some stores got the cards in early, and could be convinced to let you buy them.

I paid $190 ea for my Gigabyte WindForce GTX460 1GB OC cards.

That's the price range that I am comfortable paying. NOT $400-500. That's nuts. If video cards alone are going to cost as much or more than a high-end console, I'll switch to consoles.

Yea... Some of you in US or west EU may have different view on this than someone from EU-east/Asia/SA. I'm from post-communist country where $ is worth 4 times more than for you. I have to work 4 times longer to buy my hardware and I don't like increased price points a single bit!

And here I see people cheering for nvidia's records breaking margins and $1000+ GPU! (I need to work 3 months for that!)
 

Shmee

Memory & Storage, Graphics Cards Mod Elite Member
Super Moderator
Sep 13, 2008
7,736
2,711
146
Keep it together guys, this isn't P&N. Subsidies might not be the best way, but I am open to alternatives to help AMD and nvidia be more competitive with lower prices for the consumer. I just think something needs to be done, if nvidia and AMD can't do it by themselves, then some one else needs to step in.
 

Wall Street

Senior member
Mar 28, 2012
691
44
91
And here I see people cheering for nvidia's records breaking margins and $1000+ GPU! (I need to work 3 months for that!)

Not cheering, but it is their right to sell their GPU for $1,000 just like it is a buyers right to purchase it or not. So what, Titan costs a grand. nVidia still offers all of the other cards they were selling previously for the same prices (or lower) than they were selling them for before the Titan release. When the 600 series first came out, I remember people accusing AMD of price gauging because they had the 7970 for $550. But AMD too had the right to price the 7970 at $550, and again, consumers had the right to decide to buy it or not at the price. That is the free market at work.

There are better things for the government to spend money on than GPU subsidies and the free market has resulted in 2013 GPUs where the $150 model today (GTX 650 Ti) is more powerful than a $650 model from 5 years ago (GTX 280, Summer 2008).
 
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Sleepingforest

Platinum Member
Nov 18, 2012
2,375
0
76
If consumers are willing to pay premiums for NV's products, then NV deserves the high profit margins. In my eyes, it seems the trend is more expensive GPUs from both camps in general. $400-500 mid-range with $700-1000 now reserved for flagship cards, or an increase from $250-300 and $500-650 we previously had.
That strikes me as somewhat insane. I remember when the HD4850 512MB was mid-range, and it was released at $200 retail. I paid $150 for mine, BB had a 25% off sale on VisionTek cards, the week before the card was supposed to be released. Some stores got the cards in early, and could be convinced to let you buy them.

I paid $190 ea for my Gigabyte WindForce GTX460 1GB OC cards.

That's the price range that I am comfortable paying. NOT $400-500. That's nuts. If video cards alone are going to cost as much or more than a high-end console, I'll switch to consoles.
I mostly agree, but you do have to take into account inflation--about 8% cumulative since 2008, and about 35% cumulative since 2000. That makes the $500-650 flagships of 2000 like $675-900 today, which makes the Titan seem less obscene.

Is it ideal? No, of course not, we're used to the unadjusted-for-inflation prices. It certainly feels like a price hike, because it is. But this isn't totally out of line when we compare to the past.

Besides, the value has always been in the midrange area, between $150 and $200. That's where people have always gotten the most performance for their money. Today, you can get the GTX 660--directly analogous to the 460 1GB in the Nvidia lineup--for around $200.
 
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BallaTheFeared

Diamond Member
Nov 15, 2010
8,115
0
71
I think Nvidia just took advantage of the situation, one AMD played an intricate role in as well.

There is no way they came into 28nm thinking GK104 was going to be the flagship, but as it happened it happened.

Combine AMD's price hike, their constant driver woes from lack of performance, to single card stutter, to runt frames in CF.. It's just been a disaster of a generation for AMD. Meanwhile, Nvidia went in with a mid-range flagship, filled out their GK110 workstation orders, then dropped the motherload with the real flagship card, GK110 @ $1,000.

This is the problem with a duopoly...
 

Wall Street

Senior member
Mar 28, 2012
691
44
91
If AMD had these kind of margins would that be a bad thing?

AMD's gross margins were 41% in the first quarter. Like I said before, gross margin in a poor was to measure the semiconductor business.

Gross margin doesn't include R&D. If Proctor and Gamble stopped doing R&D they could still sell existing products like Tide laundry detergent or Bounty paper towels - they just wouldn't have any new products. In the semiconductor industry if you don't do R&D then you won't have anything competitive to sell in three years.
 

Cerb

Elite Member
Aug 26, 2000
17,484
33
86
Yea... Some of you in US or west EU may have different view on this than someone from EU-east/Asia/SA. I'm from post-communist country where $ is worth 4 times more than for you. I have to work 4 times longer to buy my hardware and I don't like increased price points a single bit!

And here I see people cheering for nvidia's records breaking margins and $1000+ GPU! (I need to work 3 months for that!)
People in the U.S. don't like it one bit, either. 3 months pay to be able to sink $1000 into a hobby is not atypical, and may even be optimistic (what's atypical is being able to work 4 times longer). There is enough of a market for Titan, but those buying Titan are easily in the top 5%, if not 1%, in terms of spending, even just limiting oneself to PC video cards. Titan is nice for nVidia, because so much of each chip is gross profit. But, the sales of their cards in desktops will have a bell curve of sales by model, likely peaking around the 650 or 660 series.
 

5150Joker

Diamond Member
Feb 6, 2002
5,549
0
71
www.techinferno.com
Three months for $1000? What kind of crap jobs do you guys have? I can understand raising a family and paying a mortgage is not easy but even a half decent job leaves enough disposable income to buy more than one titan. I'm in my last year of med school and I bought two of them with cash.
 

Cerb

Elite Member
Aug 26, 2000
17,484
33
86
Three months for $1000? What kind of crap jobs do you guys have? I can understand raising a family and paying a mortgage is not easy but even a half decent job leaves enough disposable income to buy more than one titan. I'm in my last year of med school and I bought two of them with cash.
Median income is around $40-50k/yr, typical discretionary income will be around $5-10k/yr, and that's about as high as it gets for around 2/3 of the population, or a little more, depending on how it's being measured (with about 1/3 having <$7k/yr, based on quick Googling, though a few stats showing <5k--probably counting cars+pets or something). So, easy if you eat ramen and only spend money on gaming. More hobbies, less gaming, less income, living closer to a major city, not being single, having kids, having a pet, paying off a car, not being a loner geek, living paycheck to paycheck, and so on, and the time will increase. Also, most people are effectively on fixed incomes, in so far as that working more is not a practical option, only changing locations or jobs. Those people making less gross, and/or with other places they want to spend their spare money (including just saving it), and those with higher costs, still buy PCs, still buy video cards for them, and still buy games.

In fact, just hop over to GH, and look at the build threads. $700-1000 is extremely common, for the whole PC.
 
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Final8ty

Golden Member
Jun 13, 2007
1,172
13
81
Compared to Intel's historical pricing and competition, they actually make the world's most efficient, fastest and still reasonably priced gaming CPUs. $225 for 3570K is a bargain in the context of historical CPU pricing, longevity and its overclocking and efficiency. NV's products do not fit into this context except for efficiency. 680 is gimped on the overclocking front, the stock cooler and PCB on the 670 is sub-par, voltage is locked, VRAM is gimped, HD7950 OC wipes the floor with 660Ti. In almost all cases under $550, NV offers worse performance and price/performance than the competitor. Perhaps GTX650Ti Boost is the sole exception.

Regarding comparing Intel's higher margins to NV's, GPUs won't last as long as CPUs either. Therefore, people don't care as much that Intel is making a killing on CPUs. Also $225-325 CPUs is not comparable to $400-550 GPUs that are outdated in 2 years. 2500K/3570K or even 2600K/3770K are justifiable by virtue of them lasting at least 3-4 years. Just look at i7 Nehalem @ 3.75ghz in games:
http://www.guru3d.com/articles_pages/far_cry_3_graphics_performance_review_benchmark,7.html

Furthermore, Intel's CPUs hold their value very well. You can sell a 3570K that you paid $225 for $125 2 years later without a problem. The total cost of ownership over the useful life of the CPU is very minimal. With a GTX480, you paid $500 at launch and 1.5 years later it was going for $175-225 on Newegg. With GTX580 you paid $500 and in 1.5 years later HD7850 OC delivered that performance for $200.

Outside spring 2012, this gen with NV, you generally paid more for slower performance and in many cases less features (less VRAM for mods), no ability to bitcoin mine. This is not the NV I know. The NV I know gave us the awesome GeForce 4200Ti, 6800 non-ultra unlock, 6800GT, 8800GT, GTX460/GTX470 and GTX560Ti. This is the first time since GeForce 5 where for nearly 12 months I have had a very difficult time recommending any NV card, except in situations of SLI or if someone just wants the best in the GTX690/Titan. NV's margins and brand positioning this round is more Apple than NV. The OP sees this and I see it too. I am not against a business making money but it's a head-scratcher when NV starts selling slower, worse overclocking, VRAM gimped products for more $ and gamers are buying. If this stunt was pulled in past generations from GeForce 4 to GeForce 400, NV would have gotten burned on the forums. The Titan regained the single GPU performance crown but they still have no price/performance card anywhere near the status of those cards I listed above. 660Ti isn't it since HD7950 OC >>>> GTX660Ti OC all day. GTX660 and below is too slow. GTX670/680 are still overpriced.

I want to meet those people who are willing to pay $360 in May 2013 for a reference GTX670, after a rebate.



:thumbsup::thumbsup:
:thumbsup:
 

Final8ty

Golden Member
Jun 13, 2007
1,172
13
81
What was this person doing when Gigabyte GTX670 was $399 on May 10, 2012, exactly 1 year ago? 12 months have passed, Gigabyte GTX670 fell $20.

GTX670 level of performance today should be $275 and in 12 months from now $200 at most. GPUs should get cheaper over time. NV's and AMD's cards have barely moved in the last 12 months. Huge rip-offs on both sides now. I wouldn't touch anything in 2013 at these prices without $75-150 price drops for both, esp. NV. HD7970GE were going for $470 in July 2012, and are $410 now. The joke's is on people still buying at these prices and sending a signal to NV/AMD that this is OK.

Again spot on.
 
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