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AMD said it themselves. They're "undershipping" to "reduce downstream inventory". [1] The take from multiple[2][3][4] journalists on that call is they're tryin
by Brybry 4y ago
AMD said it themselves. They're "undershipping" to "reduce downstream inventory". [1]
The take from multiple[2][3][4] journalists on that call is they're trying to avoid a
"supply glut" and maintain high prices.
[1] https://seekingalpha.com/article/4574091-advanced-micro-devices-inc-amd-q4-2022-earnings-call-transcript https://seekingalpha.com/article/4574091-advanced-micro-devi...
[2] https://www.pcgamer.com/amd-undershipping-chips-to-help-prop-prices-up/ https://www.pcgamer.com/amd-undershipping-chips-to-help-prop...
[3] https://gamerant.com/amd-undershipping-graphics-cards/ https://gamerant.com/amd-undershipping-graphics-cards/
[4] https://www.extremetech.com/computing/342781-amd-ceo-says-its-limiting-supply-of-cpus-and-gpus-to-maintain-high-prices https://www.extremetech.com/computing/342781-amd-ceo-says-it...
- fsckboy 4y agoyou put "supply glut" in scare quotes, but again, do you know that their motive is cynical? they're talking to the public, i.e. investors, and they could easily be saying "our current sales figures are lower not because our product is not popular, but because there is currently a large inventory downstream to meet current demand. When that glut is cleared, expect our sales to resume." if downstream sellers have sufficient inventory, the only way to induce them to buy more would be for AMD to drop prices. If AMD cards are in hot demand and selling out immediately, restricting supply would be artificially boosting prices. But if the downstream pipeline is full, it's not right to say that reduced demand from wholesalers while that glut clears is AMD artificially boosting prices.