Nvidia has reportedly reduced its manufacturing costs by up to 12 percent

[Polycount]

In context: The PC hardware industry has been under intense pressure from crypto miners, scalpers, and gamers alike lately. Throw the ongoing chip shortage and the Covid-19 pandemic into the mix, and you have a recipe for pricing disaster. While we can't say for sure when the situation will substantially improve for ordinary gamers, PC building companies will experience some relief soon thanks to recent manufacturing optimizations at Nvidia HQ.

According to new reports, the company has managed to reduce its manufacturing costs by anywhere between 8 to 12 percent. Nvidia has already informed its AIC partners of this news, as well as its intentions to pass these new savings directly on to said partners.

Strangely, WCCFTech reports that those AICs won't then offer those savings directly to consumers. Instead, they will be passed on again to system builders like NZXT, Corsair, Omen PC, Maingear, and others. In other words, don't expect a sudden dip in pricing on individual partner-branded cards you might find at local or digital retailers.

GPU price changes since March of last year.

That said, there's still room for optimism there. As we pointed out in our last GPU pricing update, costs continue to drop across the board, with some cards seeing a retail price dip of up to 11 percent between January and February. They still come in at far above MSRP, but again, the point is that the situation is improving rather than growing worse, and Nvidia's manufacturing optimizations certainly won't hurt there.

Returning to the topic at hand, gamers are only likely to see price improvements if they purchase a build through a system integrator thanks to the way these savings are being passed down the sales chain. Everyone else will have to content themselves with a more gradual decline in pricing over the next few months; provided that crypto mining demand remains low.

Intel's impending entry into the GPU market should also have a positive impact on overall card pricing. However, we can't say how significant the dip might be until the first Alchemist GPUs officially launch sometime this year -- likely between May and June.

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https://www.techspot.com/news/93843-nvidia-has-reportedly-reduced-manufacturing-costs-up-12.html

 

[Dimitriid]

12% less in manufacturing, 120% more vs MSRP so color me unimpressed.

 

[Irata]

What a coincidence - right around the time demand is going down.

So that means msrp goes down accordingly and we'll see cards at the lower msrp, right?

 

[Achaios]

"According to new reports, the company has managed to reduce its manufacturing costs by anywhere between 8 to 12 percent."

Sounds like Bee-Es.

Even they are not quite sure if they reduced their "manufacturing costs" by 8 or 12 percent.

Hey Leatherman, give us a break.

 

[Thom Vee]

Yay. More profits for AIC partners and SI's.

/s

 

[pencea]

What a coincidence - right around the time demand is going down.

So that means msrp goes down accordingly and we'll see cards at the lower msrp, right?

Doubt it. This is Nvidia after all, if anything prices will remained the same or get even more expensive especially with their next lineup of RTX cards.

 

[zamroni111]

I guess it mostly comes from Samsung foundry discount

 

[Puiu]

They'll do that when pigs will fly

 

[Stark]

Look's to be more of a PR stunt, so that they are not blamed for their share of scalping in the past months.

 

[CanAqua]

What a coincidence - right around the time demand is going down.

So that means msrp goes down accordingly and we'll see cards at the lower msrp, right?

We won't see shist since the chips to manufacture these cards are still incognito... anyone say 4000 series...

 

[seeprime]

What a coincidence - right around the time demand is going down.

So that means msrp goes down accordingly and we'll see cards at the lower msrp, right?

No. The article says the price to OEM's will go down. MSRP remains the same.

 

[Avro Arrow]

"Nvidia has reportedly reduced its manufacturing costs by up to 12 percent"

And has raised its prices accordingly.

 

[pcnthuziast]

Moral of the story... cost to the end user will stay inflated while their profit margins increase.

 

[Neatfeatguy]

I see this trick all the time at the gas pump.

Oil drops $10 in the market and has been at that new price drop for a week. Gas at the pumps don't budge.

Oil goes up $10 and the first day that oil price jumps, gas immediately jumps at the pumps.

I wouldn't hold my breath waiting for prices to drop anytime soon.

 

[DaveBG]

I think someone should intervene and do something. This has to be regulated...

 

[Sausagemeat]

I think someone should intervene and do something. This has to be regulated...

Why? Because you want cheaper graphics cards to play computer games with?

These are luxury products that you don’t need. They can charge whatever they want. Nobody owes you a graphics card.

 

[Neatfeatguy]

Why? Because you want cheaper graphics cards to play computer games with?

These are luxury products that you don’t need. They can charge whatever they want. Nobody owes you a graphics card.

That's kind of presumptuous of you.

What if they do need one? What if it's required for their work or business? Maybe they'd like to not pay as much for it for their work needs....I see nothing wrong with that.

 

[Sausagemeat]

That's kind of presumptuous of you.

What if they do need one? What if it's required for their work or business? Maybe they'd like to not pay as much for it for their work needs....I see nothing wrong with that.

I see lots wrong with getting governments involved just because you want to pay less to play luxury computer games. You don’t need a GPU for work, at least not an expensive one. And professionals who need expensive GPUs, well they already pay more than gamers do. Barely anyone needs a “GeForce RTX” card etc. And those who do can afford it already.

Nvidia and AMD are allowed to charge what they like. If you don’t like it, don’t buy it.

I’m so sick of this entitled attitude by gamers. We are not owed cheap hardware by anyone. When you call for regulation what you’re really asking for is a group of people (a government) to act like thugs and force these companies to give you more for less, it’s disgusting.

 

[DaveBG]

Why? Because you want cheaper graphics cards to play computer games with?

These are luxury products that you don’t need. They can charge whatever they want. Nobody owes you a graphics card.

Wrong. I want GPUs for mining RIGs.

 

[Neatfeatguy]

I see lots wrong with getting governments involved just because you want to pay less to play luxury computer games. You don’t need a GPU for work, at least not an expensive one. And professionals who need expensive GPUs, well they already pay more than gamers do. Barely anyone needs a “GeForce RTX” card etc. And those who do can afford it already.

Nvidia and AMD are allowed to charge what they like. If you don’t like it, don’t buy it.

I’m so sick of this entitled attitude by gamers. We are not owed cheap hardware by anyone. When you call for regulation what you’re really asking for is a group of people (a government) to act like thugs and force these companies to give you more for less, it’s disgusting.

I'm not talking about government. I simply stated you shouldn't assume someone doesn't need a GPU because you classify it as "luxury product".

What you may need one for and what someone else may need one for isn't always the same thing.

 

[Sausagemeat]

I'm not talking about government. I simply stated you shouldn't assume someone doesn't need a GPU because you classify it as "luxury product".

What you may need one for and what someone else may need one for isn't always the same thing.

You said “regulations”. That means government. No one else could enforce them. So for you to claim now that you weren’t talking about government is pure bullshit. Who else is going to enforce these “regulations”?

Also a GPU is a luxury product for 99% of buyers. Sure some pros “need” them. That’s not a case to levy controls on private companies.

It’s obvious what you’re saying, you are acting entitled. You feel entitled to cheaper luxury gaming products and you want someone to force theee companies to give you these luxury items for less. You want to bully them because you don’t want to pay their prices. What next? Going to call for “regulations” on luxury cars? What about Omega watches? Or just the next expensive item you don’t need that you want?

 

[Sausagemeat]

Wrong. I want GPUs for mining RIGs.

If you genuinely don’t feel that you have a “right” to crypto mine then you have big problems.

 

[Avro Arrow]

I think someone should intervene and do something. This has to be regulated...

Be careful, lest some right wing-nut call you a socialist.

 

[pcnthuziast]

Be careful, lest some right wing-nut call you a socialist.

Yeah. The solution is simple. Stop being poor.

 

[Neatfeatguy]

You said “regulations”. That means government. No one else could enforce them. So for you to claim now that you weren’t talking about government is pure bullshit. Who else is going to enforce these “regulations”?

Also a GPU is a luxury product for 99% of buyers. Sure some pros “need” them. That’s not a case to levy controls on private companies.

It’s obvious what you’re saying, you are acting entitled. You feel entitled to cheaper luxury gaming products and you want someone to force theee companies to give you these luxury items for less. You want to bully them because you don’t want to pay their prices. What next? Going to call for “regulations” on luxury cars? What about Omega watches? Or just the next expensive item you don’t need that you want?

I never said regulations, you should re-read my posts....

In fact, I'll help you out:

That's kind of presumptuous of you.

What if they do need one? What if it's required for their work or business? Maybe they'd like to not pay as much for it for their work needs....I see nothing wrong with that.

I'm not talking about government. I simply stated you shouldn't assume someone doesn't need a GPU because you classify it as "luxury product".

What you may need one for and what someone else may need one for isn't always the same thing.

I said you were being presumptuous about assuming a GPU is just a "luxury product" for everyone. Just because you feel it is a luxury product, doesn't mean it is the same thing for someone else.

I never brought regulations or government into any of my comments. I'm sorry you couldn't see that in my initial comments, but that appears to be a problem on your end.