4 ms·
The falling margin is a consequence of falling competitiveness. I don’t think you’ll arrest that by decreeing high margin only going forward. But sure give it a
by Havoc 1y ago
The falling margin is a consequence of falling competitiveness. I don’t think you’ll arrest that by decreeing high margin only going forward. But sure give it a go and see I guess.
This likely means they’ll kill their GPUs? Don’t think those are particularly profitable
- SlowTao 1y agoSounds about right, it looked like they were a loss leader trying to get a foot into the space. They have been vaguely successful in getting a small toe in the door of GPU's, but not enough to justify the costs.
- scosman 1y agoProfitable != margins. GPU folks can at least make a case that GPUs can be high margin (points at nvidia stock and shrugs). Some businesses where all competitors are selling at low margins that isn’t possible.
- 0cf8612b2e1e 1y agoGPUs seem like a space ripe for investment, but this kind of management decree might make follow-up impossible. Do what neither AMD or NVIDIA will: sell me a card with oodles of RAM. Could operate at speeds two generations removed from current top tier and it will still sell.
- esseph 1y agoYou want this, but the margins aren't there, which is why NVIDIA doesn't care so much about consumer and workstation cards.
- roenxi 1y agoHow do we know the margins aren't there? Was there a high-RAM low-oomph card that flopped which didn't make the news?
- scott_w 1y agoIf customer research are doing their job properly, you won’t hear about the flop because they already investigated and determined it wasn’t worth the investment. Before designing the chip.
- roenxi 1y agoLike when AMD decided that Nvidia was barking up a crazy tree when they started targeting general purpose compute with their GPUs instead of gamers? Companies miss opportunities for high-margin products all the time. There is every chance there is a huge market for high-RAM GPUs, the demand has only started appearing in the last few years. Margins could be anywhere in the space right now. I don't think its been tested, if there is a high-ram but otherwise mid-range card I'd like to know about it.
- esseph 1y agonvidia barely cares about gamers, which is a huge market segment compared to programmers, and even less that want video cards with lots of ram. Not enough profit when they can chase other, more profitable avenues.
- scott_w 1y agoYou're correct but it doesn't quite refute my statement. My statement is that good customer research kills bad ideas before they hit the market (so you don't see the failure). However, it can also be the case that it won't spot a good opportunity, therefore there is no product in the market to succeed or fail. Basically, your statement of there not being a case of a product failing does not prove that market exists. It also doesn't prove that there's no evidence that the market doesn't exist. It just means that there's no publicly available evidence that the market does or does not exist.
- haiku2077 1y agoI've got an AMD card I bought last year under $1k with 24GB. Meanwhile Nvidia is putting out these weird 8GB and 16GB cards in that price range.
- ryao 1y agoThe professional versions should be very profitable. That said, I am hesitant to think that they can sell very many of the professional ones if they don’t sell consumer ones so that software support is there. Maybe they will get the software support in part from iGPUs, but it is possible to design software that only works on iGPUs if discrete versions are not readily available.