AMD and NVIDIA Reveal Plans to Lower the Impact of Tariffs on Video Cards

Discussion in 'HardForum Tech News' started by cageymaru, Sep 27, 2018.

  1. cageymaru

    cageymaru [H]ard as it Gets

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    According to Ryan Shrout of Shrout Research, both AMD and NVIDIA will be negatively affected by the new 10% tariff on $200 billion of imports from China. Mr Shrout notes that NVIDIA was already under pressure from consumers for the high price of the RTX series and "it is unlikely that it or its partners will simply absorb the added costs of the tariff." Shrout expects price conscious consumers to "lash out" as price increases are inevitable since the "vast majority" of video cards are made in China and a move to Taiwan will take time. The article notes that 60% of NVIDIA's sales in July came from its gaming graphics division while only 25% of AMD's revenue was attributed to its graphics division. Bank of America Merrill Lynch expects a 5-10% price increase on NVIDIA's RTX series.

    This has led the two graphics card juggernauts to reveal plans to lessen the burden of the tafiffs. AMD issued this statement about the tariffs: "We are working closely with our customers and partners to mitigate potential impacts related to the tariffs on AMD-based products. From all that we know today, we do not expect the US tariffs to have a material impact on our business."

    An NVIDIA spokesperson was also questioned about plans to lower the impact of tariffs and this was their statement: "There's relatively little direct impact on us. We understand that most of our partners have moved or are moving their impacted assembly work to Taiwan and Mexico, which aren't affected by the tariffs."


    Please try to be respectful to one another. A good way to do that is to leave as much politics that attacks another person out of the discussion. Stay on topic and respectful to each other and you will have a great day on the forums!
     
    Last edited: Sep 27, 2018
  2. DrBorg

    DrBorg Gawd

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    Not touching this. This is all politics.
     
  3. Madoc

    Madoc Gawd

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    Don't want to pay the tariffs? Build your hardware somewhere else.
     
  4. tikiman2012

    tikiman2012 [H]ard|Gawd

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    It's not politics when it effects your household in a negative way. It's real life, sadly.
     
  5. Gigantopithecus

    Gigantopithecus [H]ardOCP Case Reviewer

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    "have moved or are moving their impacted assembly work to Taiwan and Mexico"

    Ross Perot has been out of politics long enough that hopefully the phrase "giant sucking sound" won't offend anyone. :rolleyes:
     
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  6. emphy

    emphy Limp Gawd

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    You may ignore politics, but politics will not ignore you. Whatever you may think of the actions of politicians, they are constantly making decisions that impact real life. Exclude politics from your life at your own peril.
     
    Last edited: Sep 27, 2018
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  7. Pieter3dnow

    Pieter3dnow [H]ardness Supreme

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    P.O. box in Canada a solution ?
     
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  8. -=SOF=-WID99

    -=SOF=-WID99 Limp Gawd

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    great news and yes i have seen GPU prices level out here at my local microcenter as well as other sites ..and yes mining is down and cards can be found below MSRP if ya look at least for the 10XX series
     
  9. Master_shake_

    Master_shake_ [H]ardForum Junkie

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    Then you can pay the Canada tax as well as all those lovely brokerage fees for when 'insert bullshit courier here' wants to get their pound of flesh.
     
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  10. viper1152012

    viper1152012 [H]ard|Gawd

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    Well we'll just unplug this factory and move it across the sea and set back up so this tariff wont affect your wallet.

    Should take a week eh Nvidia.
     
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  11. admiralperpetual

    admiralperpetual Limp Gawd

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    LOL bizaro world!

    suck it 'merica! :p
     
  12. Sycraft

    Sycraft [H]ardness Supreme

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    I imagine GPUs will be able to work around this fairly easy. Remember that the "made in" designation only applies to where final assembly is done. It's really a relic of a past era that has never been updated. Upshot is that you can use parts from all over the world, and do some of the production all over the world, but wherever it gets the last assembly done is where the "made in" comes from. So perfectly possible to do something like fab the chip in Taiwan (as they already do) build and populate the board in China, then ship it off to somewhere else that assembles the heatsink, puts the whole thing together, tests and boxes it. It would then be "made" in that location. You don't have to shift your entire assembly line somewhere else. Indeed most products these days are international productions. No matter where they are put together in the end, you find parts from a number of places inside them.

    That aside the tariffs don't really matter to me on the RTX cards. They are already way too expensive. Figuring out a way around those is not going to make me any more likely to buy it, nVidia has to get their pricing down in the reasonable realm first.
     
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  13. AMD Ryzen

    AMD Ryzen n00b

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    Mr?? Makes me think they are talking about Ryan's dad! Even Kyle doesn't get called MISTER around here.. maybe he should be! Mr El Chingón from now on you peons!

    Just because Ryan takes off his Duke. I mean Kentucky basketball t-shirt, puts on a coat and changes the screen behind him to "Shrout Research" for CNBC shouldn't make him a "Mr" to THIS crowd.. He still associate himself with JoshTekk!
     
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  14. gglenn

    gglenn [H]Lite

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    Maybe they could screw on the retaining bracket stateside and claim Assembled in USA.
     
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  15. DKS

    DKS Limp Gawd

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    No, because your customs people will see the big MADE IN CHINA sticker on it and charge you the duty. And no, Canadians won't be your friends on this one.
     
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  16. DKS

    DKS Limp Gawd

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    And have to pay in Canadian dollars at a 30% discount. Then, if they want their 13% HST refunded, let them go through the unique hell that is the Canada Border Security Agency and the Canada Revenue Agency. ;)
     
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  17. Oldmodder

    Oldmodder Gawd

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    I will huff, and i will puff, and i will blow your tariffs down :whistle:
     
  18. Gideon

    Gideon 2[H]4U

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    Bad trade deals have been affecting your household for far longer and also helping to pollute the world in countries that dont care what they do to the environment. It's an area that has been needing to be tackled for a long time.
     
  19. Grimlaking

    Grimlaking 2[H]4U

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    So how long exactly before we see super cheap knockoff cards that work exactly as well as Nvidias cards being sold in China? Now that Nvidia and others are pulling out there isn't a financial interest to keep the production at one site and protect the IP. I have a sneaking suspicion that Nvidia and Amd and really anyone else that was producing parts in China and is now leaving will feel it right in the shorts when they flood the Market with perfect half price knockoff cards.
     
  20. Krenum

    Krenum [H]ardForum Junkie

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    We've only ourselves to blame for these tariffs.
     
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  21. Formula.350

    Formula.350 [H]ard|Gawd

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    Did nobody notice nVidia's clever avoidance of indicating what isn't being effected? Not their "products" like AMD said, but that it will not effect "us" [see: 'them'].

    Either they need to fire their Spokesperson because they aren't capable of properly conveying what they ought to be...
    Or nVidia is just looking out for their own bottom line, once again, and it's just as it reads: the tariff isn't going to effect them directly in any way because the money they will take in won't change.

    We all know I'm not fond of nVidia, but that opinion is well founded and it's not my fault they worded their response so shadily. I'm just calling it how I see it in this instance.
     
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  22. jamesgalb

    jamesgalb Gawd

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    And thus the world learned... If you dont participate in REAL "Free Trade" (fair on both sides), and the consequences will be that companies will move once the US makes things "fair", and the US will not suffer as the result...

    It is almost like someone knows what they are doing.
     
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  23. jamesgalb

    jamesgalb Gawd

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    China is already losing manufacturing because of this. How long do you think they can play this game?

    The results will be REAL "Free Trade", fair on both sides. If you want to "blame" that on us, then sure :)
     
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  24. Pyromaneyakk

    Pyromaneyakk [H]ard|Gawd

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    FIFY

    A temporary price increase of around 10% won't hurt much compared to the 300% price increase we saw due to crypto-mining. And once the manufacturers move to countries that are not stealing our IP and run by despotic communists, we will all be better for it.
     
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  25. Krenum

    Krenum [H]ardForum Junkie

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    Its easy to blame someone else for decades of unfair trade deals that the United States set themselves up for. This is what happens when you import most of your goods from another country.

    Trump is just righting the ship.
     
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  26. DukenukemX

    DukenukemX [H]ardness Supreme

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    They ain't doing shit. Graphic cards are already overpriced. They can't possibly increase the price and expect people to buy them.
     
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  27. Cipix

    Cipix n00b

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    Fuck all these greedy assholes. PR stunt to justify any additional cost increases.
     
  28. Spidey329

    Spidey329 [H]ardForum Junkie

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    The cards were assembled there with some Chinese parts. The major important components are made in other countries (the actual GPU and memory), so it's not an easy reverse engineering job.

    That's how they can move the production so quickly.



    I wouldn't go that far. It's long been known that China needed to be taken down a giant peg, the only difference between Trump and every other politican is that he's crazy enough to attempt it. All of the others would just go with the status quo.

    If he knew what he was doing, he probably wouldn't have waged trade wars with multiple countries at the same time. From a strategic point, it's better to ally up and use a combined leverage to tackle the juggernaut .. then you wage the little wars for better deals.
     
    Last edited: Sep 28, 2018
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  29. Pieter3dnow

    Pieter3dnow [H]ardness Supreme

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    Yeah because when Donald Trump says something the world just laughs out loud as witnessed in the UN address.
    There are only 2 people involved on the tariffs and both work for the Whitehouse the rest of the US based economists oppose them.
    There is zero incentive to move production.
     
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  30. NukeDukem

    NukeDukem 2[H]4U

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    I welcome the tariffs. Don't want my newborn nephew growing up in a world dominated by Chinese Communists. Suck it up buttercups.
     
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  31. Jinto

    Jinto [H]ard|Gawd

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    I am just waiting for the shit to hit the fan and then I can scoop up real estate and stocks (well ETFs, since I work for a bank I can't trade stocks easily) for the cheap. It is all rosy until consumer sentiment goes down and it is bound to happen sooner or later. I think Trump is betting that it will only happen after he leaves office...which is quite possible. I mean worst case they can just keep lowering taxes and pump money into the economy at the expense of the deficit. At some point China will start drawing down their foreign reserves to alleviate the affects of the tariffs causing the U.S. to have to raise interest rates even faster to service the debt. At that point it is a race to the bottom :)
     
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  32. DukenukemX

    DukenukemX [H]ardness Supreme

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    It'll happen sooner than Trump leaving office. Considering what's going on in the economy lately, I'd say we'll hit a recession around March - May of 2019. Lots of stores should really close down like Toys R Us, but they haven't because even the worse stores make good money during Christmas season. Once the Christmas season is over and the dust settles, they're going to fire a bunch of people and close shop. Right now Americans owe more money than in 2008, which is what kicked started the recession in 2008. So imagine how bad this recession is going to be? And it won't be Trumps fault technically, but mostly Bush and Obama's. Bush screwed up the economy during his presidency, and Obama made a lot of bad decisions like bailing out the banks. If banks can't fail then banks continue to raise interest rates, give out bad loans, and cause rapid inflation.

    As for graphic cards, I don't see myself buying a new graphics card for a long time. The prices of graphic cards are insanely high now, and won't be cheaper when a recession occurs. I'm sure many people here have no problem buying $500+ graphic cards, but not me. I just recently bought 16GB of DDR4 2933Mhz memory for $160 used off Ebay, and that's a great deal but still well beyond what should have been around $100 brand new. The only cheap thing to buy now is the CPU+Motherboard. I only paid $200 for my Ryzen 7 1700 brand new, and my Asrock motherboard was only $60 brand new. I expect this setup to last me 4-5 years the way prices are going.
     
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  33. Master_shake_

    Master_shake_ [H]ardForum Junkie

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    Tell me, what does the t in tsmc stand for?
     
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  34. capt_cope

    capt_cope Gawd

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    People like to give him shit, but Ross knew what was up.
     
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  35. DrBorg

    DrBorg Gawd

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    So, who gets to keep all this Tariff money?

    Is the US now doing a 10%-25% cash grab on everything?

    I bet it ends up disappearing somewhere before it's over. :)
     
  36. RealBeast

    RealBeast Gawd

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    Yeah, and how and from who (or whom) is it collected? I buy lots of stuff off EBay from China via the USPS to repair/rebuild laptops and networks. Are those bitches going to send me a bill? :eek:
     
  37. GT98

    GT98 [H]ard|Gawd

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    Guess it never entered your thought process that the reason stores are closing shop is because of over-development and online shopping habits? My town is experencing this to a point-the local best buy, Ruby Tuesday's, Barnes and Noble, etc are all closing in the next couple months-but I have alternative ones that are 10-15 minute vs 5 drive to get to them. There really is no reason to have 3 Targets all with in 10-15 minutes of one another either-we have decent sized populuation between the two counties I live in (~1.5 Million) but its not enough to support all those stores.

    As for owing more money since 2008-haven't you also figured out that inflataion has also risen in the past 10 years and the amount of debt is going to be higher also?

    We aren't going to experence a recession for a while...this is the first time in almost 10 years we've experenced good growth economically in a long time.
     
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  38. Krenum

    Krenum [H]ardForum Junkie

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    Hey, at least you'll be able to keep your doctor. :playful:
     
  39. Madoc

    Madoc Gawd

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    Do you know how the US federal government was originally funded? Primarily by tariffs. The US Coast Guard was part of the Department of the Treasury because it's original primary duty was to intercept those trying to avoid paying the tariffs on goods. It wasn't until the federal income tax, which was adopted to pay for WW1, that other forms of revenue began to change that.

    Money collected from tariffs goes to the Treasury Department, IIRC.
     
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