AMD admits to restraining chip supply to keep higher CPU and GPU prices

Status
Not open for further replies.
Its funny in a way how AMD is always perceived as one of the "good guys"...

Sounds like business decision with the upcoming turmoil of the economic landscape in 2023.
The disconnect in most fanboy back-and-forth seems to often be a sort of childlike understanding of both the power dynamic and business model.

The key is understanding a publicly traded corporation is legally obligated to serve the interests of their shareholders.

Therefore shareholders are the actual customers, and everyone else including retail buyers are simply tolerated as a means to an end.
 
Last edited:
The disconnect in most fanboy back-and-forth seems to often be a fundamental childlike understanding of both the power dynamic and business model.

The key is understanding a publicly traded corporation is legally obligated to serve the interests of their shareholders.

Therefore shareholders are the actual customers, and everyone else including retail buyers are simply tolerated as a means to an end.

But don't fall the third way off the cliff.

Acting like corporations are just greedy, bad, unethical, and evil, and only look out for "heheheh" their shareholder's interests, and never the STUPID consumer, is also childish.

Corporation is a legal term, and the reality of the situation is that AMD, Intel, Phison, Nvidia, Samsung, and many other corporations are doing real research, and although we do indeed pay for it, the benefits of supporting these organizations is literally the basis for our hobby regarding buying powerful computers.

They're the ones doing it. They're the ones who make our hobby happen, and what they do is so incredibly complex and difficult, that if they don't charge out the wazoo for it, then they really won't be able to support their ability to expand and do more research. Part of doing research is buying other companies that have developed interesting patents. Gaining those sorts of brilliant companies only gives us, like me and you, the power to buy even more cool technology.

Of course, even as I write all this, it's not like I don't have some sort of tugging going on in my head as plenty of incredible acts of consumer-malicious behavior hover in my memory. So it's not as if I'm naive. I know how bad they can get. But that doesn't mean that they're all bad. Each corporation might as well have its own personality and behavior.

Nonetheless, we ought to recognize that corporations actually do real work, and sell us what we want, even if they also really do want to make money,

It's also simply true they if you want to game and play almost anything, there are many decent cards under $400 that will play you every game from 1999 to 2020, at least at 1080p.

And if you're an enthusiast, then you KNOW how valuable those high-tier cards are. A true form of power drips from those rare, powerful computer chips and that's why people still pay for them.
 
destroy-the-sith-star-wars.gif
 
Very pessimistic outlook in ExtremeTech (I am expecting situation to improve by September by when full stack of Ada & RDNA 3 cards would have been released)

AMD CEO Says It’s Limiting Supply of CPUs and GPUs to Maintain High Prices​


https://www.extremetech.com/computi...pply-of-cpus-and-gpus-to-maintain-high-prices

Instead of it being a buyer’s market, prices are still surprisingly high given the low demand for GPUs and CPUs currently. Both companies have also launched new products that are more expensive than their previous-gen products, despite the current economic situation. This seems to imply hardware prices will never “return to normal” in the future. Instead, this is the new normal.
 
undershipment (countable and uncountable, plural undershipments) Shipment of an insufficient amount or quantity of goods.

All of those article does not seem to bring admissions of what the claim are to me at all.
 
You don't understand what "price fixing" is if you think this is price fixing.
If I could charge more to work part time, damn right I would. This might not be price fixing per legal definition, but it's definately manipulating the price. Little rage inducing.
 
It's to be expected... past few years, including the pandemic level PC shopping phase, for all the transitioning to work-from-home -
1) Bought a GPU at the scalped prices at the time
2) Bought a GPU a little later, once prices dropped a little..
3) Bought a GPU recently after Eth POS/Merge

For most of the above , there is no need to upgrade that GPU... most are not [H] and that GPU will last for years. (Look at how long GTX 1060 held the top spot in Steam hardware survey.. as an example)
Business 101, If lower demand... companies are not just going to keep pumping out the product, to sit on shelves.

Yeah.. the little devil on my right shoulder says "Fuck Nvidia.. and AMD".. but the angel on my left shoulder is reminding me... what the reality is... Business and Econ 101


It sucks.. but it is what it is...
 
AMD reduced production due to falling demand from board partners / distributors

Drew Prairie, AMD’s VP of communications, reached out with the following clarification: “We are shipping below consumption because there is too much inventory in the channel and that partners want to carry lower levels of inventory based on the demand they are seeing and their expectations for their business…the idea we are doing this to keep prices “elevated” isn’t accurate. Our client ASP was flat year over year, and that is due to mix of CPUs shipped.”

https://www.pcworld.com/article/149...ng-chips-to-keep-cpu-gpu-prices-elevated.html


In slightly related news:

Interesting move by Intel. Should keep prices of lower end GPUs from AMD in check (assuming Intel has sufficient stock)

👇


Intel slashes Arc A750 to $249, touts substantial gaming improvements​

PC gamers have actual options under $250 now!

https://www.pcworld.com/article/149...49-touts-substantial-gaming-improvements.html

We’d still recommend the Radeon GPU for most people. While many new triple-A games run on DirectX 12, most PC games still run DX11, and AMD’s DX11 support just works at full speed. The Radeon RX 6600 also runs well in any computer, while the Arc A750 needs a fairly modern system with PCIe Resizable Bar active or its frame rates plummet.

However, if you tend to play new, big budget blockbuster games or want to poke around with ray tracing without breaking the bank, the newly $249 Intel Arc A750 may very well be worth considering. Mainstream gamers have actual options now! Yay competition.




View attachment 546148
 
Acting like corporations are just greedy, bad, unethical, and evil, and only look out for "heheheh" their shareholder's interests, and never the STUPID consumer, is also childish.

For sure, good point, but that wasn't the implication. Nothing really happens or exists in absolutes obviously. A company still has to create and manage a perception with their retail and business buyers of their products/services.

It was more a suggestion for the people wondering "Why", like "How could AMD hold back supply to maintain higher prices, isn't that market manipulation, the shit that only Nvidia and Intel do, I thought Lisa was my friend etc".

The answer is "because she has to."

In the early-20s days of using job recruiters to help find a job, I wondered why they seemed inconsistent and somehow not totally interested in helping me find the ideal job I was describing. I didn't understand the power dynamic, that it wasn't about me, and who they were actually working for was the employers paying their placement fee.

So just understanding the power dynamic in a situation is usually the key to the "why" questions in life, IMO.
 
Last edited:
  • Like
Reactions: xx0xx
like this
AMD reduced production due to falling demand from board partners / distributors
https://www.pcworld.com/article/149...ng-chips-to-keep-cpu-gpu-prices-elevated.html
That makes a lot of sense really.

Both AMD and Nvidia's new parts are competing against the existing stock of new old stock 3xxx parts that are marked down.

So they had to plan months ago, how many to produce. And charging more to control demand is a good way to help move the 3xxx stuff. So really, these higher priced AMD parts are helping Nvidia to sell 3xxx cards. In 3 to 6 months it's likely that all new cards will probably see some price cuts if (new) inventory is still sitting on shelves...
 
That makes a lot of sense really.

Both AMD and Nvidia's new parts are competing against the existing stock of new old stock 3xxx parts that are marked down.

So they had to plan months ago, how many to produce. And charging more to control demand is a good way to help move the 3xxx stuff. So really, these higher priced AMD parts are helping Nvidia to sell 3xxx cards. In 3 to 6 months it's likely that all new cards will probably see some price cuts if (new) inventory is still sitting on shelves...
It also lets AMD refocus where they are allocating their wafers, while there is existing GPU stock on the shelves and they have a healthy stockpile of new parts they can use the saved silicon and allocate that towards EPYC chips. The biggest of the new EPYCs weighs in just under 420mm^2, whereas the 7900 series uses a whole 520. Investors want AMD to keep a GPU presence for sure, but the margins on those EPYCs are far better than any of the desktop GPUs could ever hope to be, and that is what the investors ultimately care about.
 
Clickbait nonsense. AMD isn’t “under supplying” the market in an effort to raise prices. Demand is down overall because people aren’t buying 47 GPUs for mining and everyone bought PCs during the pandemic for entertainment and work from home. If AMD were under supplying the market, they’re doing a crappy job because I can walk into any neighbourhood computer store and grab anything I want off the shelf.

AMD is making less because the consumer is buying less. That’s how business works. Are they supposed to flood the market to “do you a solid” via the resulting liquidation sale to move stagnant inventory they knew they never should have made in the first place? They are already doing discounts and deals for the new Ryzen chips as it is.
 
they’re doing a crappy job because I can walk into any neighbourhood computer store and grab anything I want off the shelf.
Does that include every AMD laptops and Epyc options ?

Demand is down

That already included in the statement of Sue claming that AMD does not achieve to fulfill 100% of all demands for all AMD products, I would imagine.

Outside of that it seem to be just clickbaity from actual reading Sue meeting call transcript, some part even made up it seem.
 
Does that include every AMD laptops and Epyc options ?



That already included in the statement of Sue claming that AMD does not achieve to fulfill 100% of all demands for all AMD products, I would imagine.

Outside of that it seem to be just clickbaity from actual reading Sue meeting call transcript, some part even made up it seem.
If AMD had access to 100% of TSMC's manufacturing facilities then perhaps they could think about meeting market demands but they don't and there is quite literally nothing AMD can do about that.
 
That makes a lot of sense really.

Both AMD and Nvidia's new parts are competing against the existing stock of new old stock 3xxx parts that are marked down.

So they had to plan months ago, how many to produce. And charging more to control demand is a good way to help move the 3xxx stuff. So really, these higher priced AMD parts are helping Nvidia to sell 3xxx cards. In 3 to 6 months it's likely that all new cards will probably see some price cuts if (new) inventory is still sitting on shelves...
Bingo. Buy that man a beer.
 
Do people not understand supply and demand?
Um welcome to economics? ;)
Literally every manufacturer does this.

The dark truth is that this is class 101 Welcome to Propaganda.

Any sort of news journal that publishes these sorts of misleading, malicious articles that portray very sensible business strategies as somehow extra corrupt or evil, are not to be trusted.

Slanted news is false news. If I see these sorts of veiled, subtle attacks, then I assume someone is being paid to look at these boring shareholder meetings, and then write news about them that is meant to manipulate you into buying certain products or certain brands. Twisting words to make normal things seem bad is nothing but how I expect these sorts of marketing-journalists to work. "AMD admits to" is a phrase that does nothing but try to portray their shareholder meeting and the reports given as pleading confessions to the devil himself.
 
Calm down, Intel has a huge glut of good cheap CPUs and AMD has already cut their CPU prices by a lot. It's a great time for CPUs. As far as GPUs - the 4k tier is expensive, yes but 1080p / 1440 is viable and more affordable than ever.
Would be better if AMD didn't restrain chip supply. More supply, less demand, lower prices.
 
Um welcome to economics? ;)
Literally every manufacturer does this.
I am not sure what this mean here, but I would imagine many do not phantom having some impact on an industry price and would just be happy to sell everything they make, making has much as they can if they would find clients. Dreaming to one day have to ever think-concern themselves about their impact on a world commodity price. You need to have quite the volume-market share.


https://www.newegg.ca/tools/laptop-finder?d=6980HX
We’re sorry, there are no items that match your selections. Please adjust your selections to try again.

Single Ryzen 6000 series laptop on newegg.ca:
https://www.newegg.ca/tools/laptop-finder?N=601400161

Only refurbish, 6900hx, seem to have 0 6900HS:
https://www.newegg.com/p/pl?N=100006740 601356331&Order=2&SrchInDesc=6900HX

And people seem to think volume on the 7000 mobile series will not be extraordinary either, i.e. does not seem controversial they have issue to ship everything since 2020
 
Would be better if AMD didn't restrain chip supply. More supply, less demand, lower prices.
Better for us for a very short bit, but it would be dependent on what AMD sells the components to the AIBs at, if they just dropped them all out the gate the AIBs risk taking a bath so they would have to trickle out their stock, and if AMD bungles drivers or the hardware doesn’t perform they are left holding the bag. It’s a big risk for them on something with a very small margin.
AMD is being a bit of a dick here but they promised to get their profit margin into the 60% range and that’s what they are doing. So they have essentially raised their prices 25% across the board to accomplish it and they are managing inventory to protect it.
They are using all the tricks they learned from Intel over the last 30 years.
 
I am not sure what this mean here, but I would imagine many do not phantom having some impact on an industry price and would just be happy to sell everything they make, making has much as they can if they would find clients. Dreaming to one day have to ever think-concern themselves about their impact on a world commodity price. You need to have quite the volume-market share.


https://www.newegg.ca/tools/laptop-finder?d=6980HX
We’re sorry, there are no items that match your selections. Please adjust your selections to try again.

Single Ryzen 6000 series laptop on newegg.ca:
https://www.newegg.ca/tools/laptop-finder?N=601400161

Only refurbish, 6900hx, seem to have 0 6900HS:
https://www.newegg.com/p/pl?N=100006740 601356331&Order=2&SrchInDesc=6900HX

And people seem to think volume on the 7000 mobile series will not be extraordinary either, i.e. does not seem controversial they have issue to ship everything since 2020
AMD and OEMs have a rocky history, AMD has demonstrated frequently that they are more than happy to short their orders. AMD also has a history of being less than forthcoming with documentation for BIOS and other core functions that makes integration and support more difficult and costly. This is why traditionally AMD laptops are limited release to prosumer products as they aren’t usually suitable for bulk orders.

That said I am watching the 7000 series mobile parts, I am really hoping this is a tipping point. I have high hopes for the 7040, otherwise I may have to look at an admin roll out of the MBPs and it’s hard enough getting our ancient software working in Windows 10 and 11 at this stage, I really don’t want to be forced to find a way to make it work in 11 ARM edition running in Parallels, I mean I’ll do it, but I don’t want too.
 
Would be better if AMD didn't restrain chip supply. More supply, less demand, lower prices.
Better for the consumer? Sure, lower prices. A disaster for AMD. Margins are slim to none in the consumer CPU space. The GPU die size inhibits price cuts there. AMD is much better off using die space for high margin Epyc CPUs - which is exactly what they are doing.

Nvidia - wtf are they doing? Doing the same damn thing, under-producing GPUs and using the die space for AI chips more than likely.
 
This is why traditionally AMD laptops are limited release to prosumer products as they aren’t usually suitable for bulk orders.
Going to have to disagree with you here, or at least suggest that this reason is truly not the reason for "rocky history," however I would suggest that being a core issue 10 years ago.

The reason that Intel has dominated the laptop market over the last decade is because Intel has had the resources, and used those to deliver fully designed platforms to ODMs. AMD simply has not had the resources to match that. Intel delivering a fully designed laptop simply means that Dell, HP, Lenovo, etc., do not have to spend R&D resources to bring a new product to market. This is however changing some now as AMD is able to do the same, and I would suggest that is why you see AMD getting many more design "wins" over the last few years.
 
Going to have to disagree with you here, or at least suggest that this reason is truly not the reason for "rocky history," however I would suggest that being a core issue 10 years ago.

The reason that Intel has dominated the laptop market over the last decade is because Intel has had the resources, and used those to deliver fully designed platforms to ODMs. AMD simply has not had the resources to match that. Intel delivering a fully designed laptop simply means that Dell, HP, Lenovo, etc., do not have to spend R&D resources to bring a new product to market. This is however changing some now as AMD is able to do the same, and I would suggest that is why you see AMD getting many more design "wins" over the last few years.
I can accept that. That is a far more clear description of what their ongoing issues have been than I put it as. I really hope AMD can turn it around, I sincerely want their 7040 series and their accelerated functions cooked in there to come out swinging, I want there to be a non-Mac option in that weight and performance class, because 95% of my admin team is pushing me to transition them to Mac's not because of software (more in spite of it), but because they look nicer, run nicer, have better battery, and all that jazz, and I really don't want to be stuck trying to figure out how to make our ancient ass payroll and pension software run there but Intel hasn't stepped up.
 
Last edited:
Better for us for a very short bit, but it would be dependent on what AMD sells the components to the AIBs at, if they just dropped them all out the gate the AIBs risk taking a bath so they would have to trickle out their stock,
I would assume AMD would have to drop prices to the AIBs to lower prices to consumers.
and if AMD bungles drivers or the hardware doesn’t perform they are left holding the bag.
This seems unrelated to pricing.
It’s a big risk for them on something with a very small margin.
Small margin is better than no margin. This is the problem the industry is facing and nobody is immune from it.
AMD is being a bit of a dick here but they promised to get their profit margin into the 60% range and that’s what they are doing. So they have essentially raised their prices 25% across the board to accomplish it and they are managing inventory to protect it.
This works when you have limited competition, but Intel could easily drop prices and screw AMD. Right now Intel is the better bargain compared to AMD.
They are using all the tricks they learned from Intel over the last 30 years.
Intels Q4 earnings aren't good so that isn't a good idea.
Better for the consumer? Sure, lower prices. A disaster for AMD. Margins are slim to none in the consumer CPU space. The GPU die size inhibits price cuts there. AMD is much better off using die space for high margin Epyc CPUs - which is exactly what they are doing.
AMD then should demand lower prices from TSMC, cause it seems everyone is canceling orders from them.
Nvidia - wtf are they doing? Doing the same damn thing, under-producing GPUs and using the die space for AI chips more than likely.
I wish Nvidia a happy going out of business then. We're basically in a recession and if you're hoping to keep prices high by lowering demand, you got another thing coming.
 
That makes a lot of sense really.

Both AMD and Nvidia's new parts are competing against the existing stock of new old stock 3xxx parts that are marked down.
Are old 30 series stock getting marked down anywhere though? Except for the 3090s that they quickly realized they couldn't sell for the same price as the 4090 nothing has come down in price, everything is still over the MSRP set by NVidia unless it's a refurbished (fancy name for used) card. Or are we going to considering a $399 card that was sold as a $599 card as being marked down when it's $499?

Now sure AMD and board partners have been marking down the old 6000 stock to points below the original MSRP, yeah I know that's a term we shouldn't use anymore... but I am! But NVidia cards are still above it in most cases except rando brand like Peladin? and then it's usually not much further below.
 
Or are we going to considering a $399 card
And how much a 7900xt-4080 is competing with those cards......

There is virtually none new old stock of relevant competition of the new products from the 3080 and up ampere, at least in online marketplace.

https://pcpartpicker.com/products/video-card/#sort=price&page=1

Not a single under $1150 3080TI on pcpartpicker, that not a realistic competition to the 4070ti-4080 (who would pay $300 more for a 3080ti than a 4070ti)
 
Are old 30 series stock getting marked down anywhere though? Except for the 3090s that they quickly realized they couldn't sell for the same price as the 4090 nothing has come down in price, everything is still over the MSRP set by NVidia unless it's a refurbished (fancy name for used) card. Or are we going to considering a $399 card that was sold as a $599 card as being marked down when it's $499?

Now sure AMD and board partners have been marking down the old 6000 stock to points below the original MSRP, yeah I know that's a term we shouldn't use anymore... but I am! But NVidia cards are still above it in most cases except rando brand like Peladin? and then it's usually not much further below.
It is and isn’t, what’s going on is a lot of the stock was purchased by the distributors and stores at the height, they themselves paid over MSRP so for them to sell at or below MSRP they are going to loose money. They don’t want that, so what they are doing is using the profits from the heavily marked up 4000 and 7900 series parts to offset those losses so they can gradually mark them down so they aren’t loosing their shirts.
 
It is and isn’t, what’s going on is a lot of the stock was purchased by the distributors and stores at the height, they themselves paid over MSRP so for them to sell at or below MSRP they are going to loose money. They don’t want that, so what they are doing is using the profits from the heavily marked up 4000 and 7900 series parts to offset those losses so they can gradually mark them down so they aren’t loosing their shirts.
And wouldn't you know, I also don't want to pay over MSRP for 2+ year old technology when a new generation exists. Funny how that works in both directions
 
And wouldn't you know, I also don't want to pay over MSRP for 2+ year old technology when a new generation exists. Funny how that works in both directions
Yeah so as Nvidia and AMD are still making their previous gen parts and still shipping them you can get them at MSRP from first party importers but they move very fast as the alternatives are old stock that’s been sitting around for months. But the inflated MSRP on the new stuff exists to lessen the blow for importers who do have stock they over paid for. Once they report they have offset their losses accordingly I’m sure Nvidia will announce price drops and things will go accordingly downward, not a lot but…
 
Are old 30 series stock getting marked down anywhere though? Except for the 3090s that they quickly realized they couldn't sell for the same price as the 4090 nothing has come down in price, everything is still over the MSRP set by NVidia unless it's a refurbished (fancy name for used) card. Or are we going to considering a $399 card that was sold as a $599 card as being marked down when it's $499?

Now sure AMD and board partners have been marking down the old 6000 stock to points below the original MSRP, yeah I know that's a term we shouldn't use anymore... but I am! But NVidia cards are still above it in most cases except rando brand like Peladin? and then it's usually not much further below.
Actually AMD is. 6950's equivalent to at least a 3080Ti or 3090 (on a good day) selling for $700. 3090's are still in the stratosphere, so are the 3080 TIs. Both still sell for crazy close numbers to the 4090 which is nuts.
 
It is and isn’t, what’s going on is a lot of the stock was purchased by the distributors and stores at the height, they themselves paid over MSRP so for them to sell at or below MSRP they are going to loose money. They don’t want that, so what they are doing is using the profits from the heavily marked up 4000 and 7900 series parts to offset those losses so they can gradually mark them down so they aren’t loosing their shirts.
Those distributors can go fuck themselves. They banked during this whole situation so I think they can afford to take a loss. The 4000 plus 7900 won't save them. Recession is already here and the market is bear. Gonna stay like this for years.
 
I wish Nvidia a happy going out of business then. We're basically in a recession and if you're hoping to keep prices high by lowering demand, you got another thing coming.
You really need to stop wishing for Nvidia to go out of business. For someone that always consumer focus and fuck corporations this would be the worst thing to happen to the consumer.
 
Couldn't make a decent product and sell it at a decent price? Fuck AMD, and Fuck you too Lisa Su!
 
Status
Not open for further replies.
Back
Top