54.4% Margins - Nvidia

[Fx1]

I don't want to mention capitalism in here (video cards), but I don't take is as a capitalism vs. anything else, it's simply NV gouging and the consumer perspective/backlash (granted the OP doesn't tippy-toe around subjects). Some people seem to have 'interests' or ties to NV which is no surprise as to why they are here trying to portray the 'wondrous' business side, but most enthusiasts are simply consumers, without financial or other ties to the business.

I'm not even sure why people get riled up about it.

I have no problem with people who like Nvidias products or AMD's. Heck i go back and forth myself all the time. But there definitely is something fishy when people start cheering about higher prices and more profits. The only people who like those things are people with a vested interest. Even basic shareholders aren't invested enough to want higher prices and more profits. Since shares are rarely influenced by profits made last quarter. Share prices are normally forward looking.

So basically HANDS UP... Who's on the Nvidia Payroll?

 

[R0H1T]

I have no problem with people who like Nvidias products or AMD's. Heck i go back and forth myself all the time. But there definitely is something fishy when people start cheering about higher prices and more profits. The only people who like those things are people with a vested interest. Even basic shareholders aren't invested enough to want higher prices and more profits. Since shares are rarely influenced by profits made last quarter. Share prices are normally forward looking.

Do you really wanna go there ? Its common knowledge that firms need profit, it is indeed more important than revenue certainly over a period of time, to survive so if Nvidia stops "price gouging" they'll be in the red like AMD !

So basically HANDS UP... Who's on the Nvidia Payroll?

Why do you have to be so antagonistic here ? I really hate taking the opposition's side but Nvidia is doing what they must & you really can't blame them for this, they ain't charity you know !

 

[TemjinGold]

I like quality products at fair prices. I honestly don't care what they are able to charge because if I don't feel the price is fair, I just don't buy. It doesn't bug me just as it doesn't bug me to see luxury cars I can't afford (I'm sure those margins are even more insane). I'm VERY happy that nVidia is able to command such margins because it means people see value in their product. If that were not the case, they wouldn't be able to sell at such prices. Anyone can want whatever margins they want. Anyone can price anything however they want. The market decides whether your potential customers agree with the value you assign.

I honestly don't care what it costs them to make the product. All that matters is whether the product is worth what they want to me. If it is, I buy. If not, I don't. It's pretty dumb to get riled up over it.

 

[Fx1]

Do you really wanna go there ? Its common knowledge that firms need profit, it is indeed more important than revenue certainly over a period of time, to survive so if Nvidia stops "price gauging" they'll be in the red like AMD !
Why do you have to be so antagonistic here ? I really hate taking the opposition's side but Nvidia is doing what they must & you really can't blame them for this, they ain't charity you know !

I dont get paid to worry about how Nvidia can increase profits. Id rather have cheaper GPU's

 

[BallaTheFeared]

I feel sorry for AMD, their consumer base isn't willing to support them as a profitable business.

 

[R0H1T]

I dont get paid to worry about how Nvidia can increase profits. Id rather have cheaper GPU's

You think I, for that matter anyone else, get paid for posting an opinion on this forum ?

 

[Fx1]

You think I, for that matter anyone else, get paid for posting an opinion on this forum ?

How should i know? But Nvidias marketing team is out and about. They arent putting money into developing TWIMTBP any more so its probably going somewhere else.

 

[R0H1T]

How should i know? But Nvidias marketing team is out and about. They arent putting money into developing TWIMTBP any more so its probably going somewhere else.

I dunno what to say really, in the meantime carry on with your merry ways !

 

[Erenhardt]

I feel sorry for AMD, their consumer base isn't willing to support them as a profitable business.

Being profitable and breaking margins records are two other things.

 

[Fx1]

I dunno what to say really, in the meantime carry on with your merry ways !

Samsung does it. So does microsoft. Many have been caught red handed.

 

[R0H1T]

Samsung does it. So does microsoft. Many have been caught red handed.

You know I also have my own small business, but when push comes to shove pretty much everyone in this world will choose higher profits over "consumer welfare" regardless of the supposed moral high ground they stand upon, & a family to feed at home !

 

[BallaTheFeared]

Being profitable and breaking margins records are two other things.

That probably had something to do with the poor showing this gen by AMD and Nvidia's ability to pick up market share with a mid-range gpu and open up a $1k price bracket for single cards.

 

[thilanliyan]

I say vote with your wallet. If people are going to buy $1k video cards, nVidia and AMD will keep making them. Stop buying and they will stop making them. Whether it is worth it is up to you.

 

[Phynaz]

How should i know? But Nvidias marketing team is out and about. They arent putting money into developing TWIMTBP any more so its probably going somewhere else.

But wait, how are they spending money on marketing when they are raising their profits!

The other option is you have no clue.

 

[R0H1T]

You know you sound like someone who got duped into buying a Titan when in fact he was in the market for a 7970 level, price wise, card !

This isn't like the CPU biz where Intel is the only real option for high performance hence you can always go with the cheaper AMD options & their TressFX unless you're a fan of phsyX + Nvidia combo ! In the end there's not much to discuss here i.e. if you don't like'em so don't buy'em simple as that !

 

[Fx1]

But wait, how are they spending money on marketing when they are raising their profits!

The other option is you have no clue.

No you have no clue.

What a ridiculous comment that is.

Samsung has record marketing spend and record profits.

You just summed up all your business accumen right there.

ZERO

 

[bystander36]

I hope people realize that Nvidia's profit margin after operating costs isn't the 54% posted in the first post. As shown earlier, the actual profits are about 15%, which is perfectly reasonable.

 

[Fx1]

I hope people realize that Nvidia's profit margin after operating costs isn't the 53% posted in the first post. As shown earlier, the actual profits are about 15%, which is perfectly reasonable.

way late with that one.

Also we all know the difference between Gross and Net profit

 

[bystander36]

way late with that one.

Also we all know the difference between Gross and Net profit

If I'm late, why do you act like they are gouging still?

 

[Fx1]

If I'm late, why do you act like they are gouging still?

why would my position on this issue change

 

[bystander36]

why would my position on this issue change

Because 15% is not gouging? And I was also more pointing my comment to those joining in who may have been mislead by you and still thinking they are actually price gouging.

 

[Fx1]

Because 15% is not gouging? And I was also more pointing my comment to those joining in who may have been mislead by you and still thinking they are actually price gouging.

What does the net margin after executive bonuses and taxes have anything to do with the price of a 680 GTX or a Titan?

 

[Fx1]

Here is where your money is going!

Executive pay -

2009 - $7,443,789

2013 - $11,782,483

Share price still in the same $12-16 region it was in 2009!

So basically they are paying themselves 50% more than 4 years ago despite not delivering any additional value to shareholders...

 

[bystander36]

What does the net margin after executive bonuses and taxes have anything to do with the price of a 680 GTX or a Titan?

The executive bonuses are a drop in the bucket compared to the total operating costs. What happens to a business when they cut profit margins to near 0%? If they have a bad year, they go out of business. This is a record year, and they made 15%, that is not gouging. It is how you stay in business.

 

[sontin]

They making 15% because all this money into R&D to bring new products to the market. They are not like AMD who spending your money Fx1 to game developers.