3 ms·
NVidia probably liked the high prices (because of miner demand), produced accordingly and kept the price stable. These high prices probably ensure a nice profit
by jsiepkes 8y ago
NVidia probably liked the high prices (because of miner demand), produced accordingly and kept the price stable. These high prices probably ensure a nice profit margin for a longer time then normal during this stage of the product's life cycle. However a side effect might be somewhat slower sales then they planned (for example because miners will buy anyway but gamers are waiting for the nextgen cards). That means they're left with a lot of stock, which sells, but not at their normal rate. NVidia normally has a very predictable product life cycle but I think they are now in something that is (to them) uncharted territory.
This could lead to stuff like their accountants saying: "You've got an awful lot of stock which isn't selling as fast as you thought. We think that's a risk". Which might compel them to set money aside for stock risks.
- endorphone 8y agoThe majority of the price hike happened in the supply chain and didn't flow through to nvidia. The demand itself was a benefit, of course (simply selling more), but nvidia's source pricing didn't change. nvidia spoke out against mining because their concern was that gamers would move to the PS4 Pro, XboxX, etc, due to the shortage, which could hurt them in the long term.
- dapole 8y agoAnd I think it was a very valid concern. I put off upgrading my gaming tower to 4K for another 2-3 years last year when prices were insane, and instead got an xbox one x. I know that all the games would run better on my pc but when the marginal cost is so much higher to upgrade my GPU that it’s frankly more than good enough.
- deleted 8y ago[deleted]