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NVIDIA hopefuls believe the company could lower prices by way of rebates to quicker reduce excess inventory, but CFO Colette Kress has dispelled that fantasy somewhat, noting software bundles are the “popular” option. Rebates aren’t an impossibility, but the company has “very little control over inventory pricing in the channel, as it’s in the hands of retailers.” Kress says prices will normalize in January, but excess GPUs will remain for one or two quarters.
“There are many different ways in terms of how we are trying to work through the overall inventory,” Kress says. “Bundling has been quite popular… we also look in terms of rebates. But you have to be careful with that, and it’s hard to get to, because the overall inventory has probably already worked down the channel. We don’t have necessarily the direct contact as we do with the initial part of our sale that we do with AICs.”
“There are many different ways in terms of how we are trying to work through the overall inventory,” Kress says. “Bundling has been quite popular… we also look in terms of rebates. But you have to be careful with that, and it’s hard to get to, because the overall inventory has probably already worked down the channel. We don’t have necessarily the direct contact as we do with the initial part of our sale that we do with AICs.”
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