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Sure, but the salaries in the EU didn't go up 20% in the same time so Nvidia is clearly not targeting the same segment of the population anymore, but a 20% rich
by bitL 4y ago
Sure, but the salaries in the EU didn't go up 20% in the same time so Nvidia is clearly not targeting the same segment of the population anymore, but a 20% richer segment now. Companies adjust pricing to different markets all the time, but for some reason Nvidia didn't do it this time and EU consumers are much more price sensitive than US ones, so EU will likely turn red or blue in the near future and green will lose its hold. Also with crypto gone and cost of living increasing sharply I think this is a huge miscalculation on Nvidia's side and this will burn them.
- ChuckNorris89 4y agoPeople buying expensive GPUs never really struggled with increased cost of living. For the budget sector the difference between a 300 Euro card and a 500 Euro card is significant but for the enthusiasts or business owners it doesn't matter if it's 1800 euros instead of 1500 Euros, they'll still buy it. Nvidia wants to be the Porsche of cards, not the VW, so they're pricing themselves accordingly.
- bitL 4y agoI am in their "Porsche buyer" category as I bought 1x RTX A6000, 1x Titan RTX and 4x RTX 3090 for Deep Learning, but I am staying away from 4090 until they get some sense with pricing. From my point of view, 2x NVLinked 3090s give me the same benefit as one 4090 at 150W higher power consumption and nothing is super appealing about 4090 until drivers on Linux and PyTorch/TensorFlow implementation get stable enough for production use which took like 6 months last time, so there is no pressure in buying it.
- fomine3 4y agoNvidia wants to sell many products, unlike Porsche
- paulmd 4y agoNVIDIA not giving you a 20% discount on their hardware to adjust for currency exchange rates isn't really the scandal you think it is. I really really wish during the last 20 years when the euro was higher that I would have gotten a "USD discount" on all my purchases from the EU, but that's not how it works.
- bitL 4y agoNvidia's manufacturing is in Taiwan. US has traditionally much lower prices on electronics than the EU, now with this change EU is completely priced out. SWengs don't earn 800k there, but typically plateau at around 100k at late stages of their careers. This will have a major impact on Nvidia's ability to service EU market. If you tried to buy something from EU in the past, you probably had to pay large import duties which likely skewed your perception.
- riversflow 4y agoYes, and Salaries in the US didn’t go down 20%. Software companies adjust prices all the time. Manufacturers don’t have the luxury of 0 marginal cost.