Rumor [Seeking Alpha] Nvidia Appears To Have A GPU Inventory Problem

[ZGR]

Could it be MXM GPU's that are overstocked?

 

[nitromullet]

Yeah, this whole thing really doesn't make sense. If geforce.com is listing GTX 1070 FE's for $399, and they are not selling out, why is EVGA selling GTX 1070's for $470 and up?

It really seems that AIB pricing has not readjusted fully post crypto bubble. EVGA's GTX 1070 SC launched at $439 two years ago! https://www.techpowerup.com/reviews/EVGA/GTX_1070_SC

Charging more for a card two years after launch is not how this is supposed to work. No wonder they aren't selling. A card that sold for $439 at launch should now be MSRP $379 + a free game, and should be readily available on sale for ~$350 or less at this point.

 

[crisium]

1070 non-FE MSRP is technically $350 (price cut last year). Maybe when the greedy retailers realize the mining demand has soothed we will finally see that. If supply is high we will see that or lower once they receive word that next-gen is shipping at the very least, as they will not sell for over $300 once 2070 and especially 2060 are here.

 

[Mopetar]

Yeah, this whole thing really doesn't make sense. If geforce.com is listing GTX 1070 FE's for $399, and they are not selling out, why is EVGA selling GTX 1070's for $470 and up?

1070 non-FE MSRP is technically $350 (price cut last year). Maybe when the greedy retailers realize the mining demand has soothed we will finally see that. If supply is high we will see that or lower once they receive word that next-gen is shipping at the very least, as they will not sell for over $300 once 2070 and especially 2060 are here.

I think that AIB manufacturers and retailers aren't budging on price just yet as they have no idea where the market is going to be at in another month. You could cut price now and sell cards, but then be out of stock when the price suddenly shoots up again and people are buying at $500 or even more. Since those groups have a lot more information about when NVidia will have new GPUs, they're better able to plan on when they need to dump inventory as opposed to when they can hold on to it, even if it's not selling as well. Prior to the mining craze I was thinking about picking up a 4GB RX 470 when they were going for about $130, but I figured it would be down to $100 in a few months. Turns out I was wrong and now it's not unusual to see them for close to $300. The insane difference in profit margin between those two points means that for a store it's probably better to only sell one card at those elevated prices than it is to sell a dozen for what they would otherwise be without the mining craze.

It might take a while longer before someone gets nervous and starts cutting prices, but it will happen eventually. I think we might even get a real price crater for a while if enough inventory gets built up and either AMD or NVidia has some solid information about next generation cards coming out.

 

[mnewsham]

1070 non-FE MSRP is technically $350 (price cut last year). Maybe when the greedy retailers realize the mining demand has soothed we will finally see that. If supply is high we will see that or lower once they receive word that next-gen is shipping at the very least, as they will not sell for over $300 once 2070 and especially 2060 are here.

Which is why another rumor is Nvidia will delay the release of the new gen until stock clears out.

 

[VirtualLarry]

Prior to the mining craze I was thinking about picking up a 4GB RX 470 when they were going for about $130

To be fair, $130 was under MSRP for those cards. The price was only that low, because AMD was phasing out the RX 470 GPU, and phasing in the RX 570, a slightly tweaker/factory OCed GPU.

 

[LTC8K6]

Which is why another rumor is Nvidia will delay the release of the new gen until stock clears out.

I don't think that works unless you drop prices.

Once I know that something superior is coming out, I tend to wait for it.

I generally don't buy the current gen, once I know the next gen is coming relatively soon, unless I get a good deal.

 

[mnewsham]

I don't think that works unless you drop prices.

Once I know that something superior is coming out, I tend to wait for it.

I generally don't buy the current gen, once I know the next gen is coming relatively soon, unless I get a good deal.

Have they announced a new gen yet?

Well keep waiting.

 

[LTC8K6]

Have they announced a new gen yet?

Well keep waiting.

I don't think we need an official announcement to know that something new is a few months away.

Generally the leak and rumor mill has it well covered, although they can certainly be wrong.

The "not for a long time" deal just whetted appetites, I think.

 

[Jackie60]

There are loads of 1080TIs in stock in the UK and availability on the Nvidia.com website at the launch price for the first time in over a year so I'm inclined to believe they have a backlog of inventory that needs shifting.

 

[Head1985]

1070 non-FE MSRP is technically $350 (price cut last year). Maybe when the greedy retailers realize the mining demand has soothed we will finally see that. If supply is high we will see that or lower once they receive word that next-gen is shipping at the very least, as they will not sell for over $300 once 2070 and especially 2060 are here.

I am glad nobody buying new cards.We need teach those greedy b******* lesson.They should learn that gamers are not second grade customers.Every one turns back to gamers during krypto mining and now they should pay the price.

 

[ultimatebob]

Dumb question, but aren't video card prices SUPPOSED to drop below MSRP a few months before the new model comes out?

That's the way it used to work, anyway. After the last few quarters of insane crypto driven profits, is NVidia getting greedy?

 

[Hitman928]

Dumb question, but aren't video card prices SUPPOSED to drop below MSRP a few months before the new model comes out?

That's the way it used to work, anyway. After the last few quarters of insane crypto driven profits, is NVidia getting greedy?

I don't think Nvidia's the one to blame here. Reports were that channel partners (AiB and distributors) were raising prices for wholesale purchasers (e.g. Newegg, Amazon) during the crypto craze. They probably didn't care at the time as the retailers could then turn around and charge an even higher markup to the customer. However, with the sudden collapse of crypto mining, retailers probably have inventory that they paid above MSRP for themselves and so they're not going to want to sell these cards at a loss.

There are also reports that channel partners have been very reluctant to drop their prices back to normal levels, trying to get as many higher priced sales as possible on the tail of crypto pricing. How this will effect the market prices of the next gen GPUs is the really interesting part.

Edit: Gamer's Nexus reporting that they confirmed with their own sources of the excess inventory problem for Nvidia. https://www.youtube.com/watch?v=BFP-xwov9ko&

 

[JTsyo]

Can't retailers usually send merchandise back if it doesn't sell for a refund? Is this not the case for video cards?

 

[Hitman928]

Can't retailers usually send merchandise back if it doesn't sell for a refund? Is this not the case for video cards?

Depends on the purchase contract. In my limited experience, a certain percentage is usually negotiated as returnable if not sold, but it varies by industry and by the companies involved.