News AMD Radeon RX 6000 GPUs Reportedly Set For Another Unfortunate Price Hike

  1. Wait for black Friday.
  2. Buy as many GPUs with good discounts as you can.
  3. Go to eBay.
  4. Profit.

Yep, no "..." in there as it's just that easy and straightforward, lol.

Still, the prices have been going up again little by little. Also, wasn't there a recent report about GPU shipments going down, like a lot?

Regards.
 

ddcservices

Honorable
Oct 12, 2017
54
26
10,560
If the GPU and only the GPU price increases by $40 for a 6900XT, then the price of the overall video card shouldn't really go up by more than that. If the price of multiple components goes up, then the price of the video cards may go up. What many people can't seem to wrap their heads around is that the GPU is the only component that comes from AMD or NVIDIA, so the actual video card price won't change all that much based on what AMD or NVIDIA charge. When we are looking at $1000+ for a video CARD, if the price goes up by $40 for the $6900XT(which sells for $1300+), is anyone really going to care all that much? How much is Asus, MSI, Gigabyte, Powercolor, XFX, Sapphire, etc. actually selling their cards for when it comes to distributor pricing? For all we know, these $1000+ MSRP cards are selling for $600 from manufacturer to distributor, and the distributor is the source of the price increases.
 
If the GPU and only the GPU price increases by $40 for a 6900XT, then the price of the overall video card shouldn't really go up by more than that. If the price of multiple components goes up, then the price of the video cards may go up. What many people can't seem to wrap their heads around is that the GPU is the only component that comes from AMD or NVIDIA, so the actual video card price won't change all that much based on what AMD or NVIDIA charge. When we are looking at $1000+ for a video CARD, if the price goes up by $40 for the $6900XT(which sells for $1300+), is anyone really going to care all that much? How much is Asus, MSI, Gigabyte, Powercolor, XFX, Sapphire, etc. actually selling their cards for when it comes to distributor pricing? For all we know, these $1000+ MSRP cards are selling for $600 from manufacturer to distributor, and the distributor is the source of the price increases.
This is simply not how things work. If the price of the bill of materials goes up 10%, the retail price will go up 10% as well — sometimes more if the company feels it can get away with it. Now, if there weren't demand that would be different, but that's not the case right now.

So theoretically:
Bill of materials: Before: $400, after: $440
Retail price: Before: $700, after: $770

But in reality it will be more like:
Before: $1200, after $1500
 

TJ Hooker

Titan
Ambassador
This is simply not how things work. If the price of the bill of materials goes up 10%, the retail price will go up 10% as well — sometimes more if the company feels it can get away with it. Now, if there weren't demand that would be different, but that's not the case right now.

So theoretically:
Bill of materials: Before: $400, after: $440
Retail price: Before: $700, after: $770

But in reality it will be more like:
Before: $1200, after $1500
There's really no inherent reason why retail price must change by the same amount, in terms of percentages (or absolute values for that matter), as the change in the BOM price. As you mention though, given the current situation with the graphics card market manufacturers may very well take advantage of the opportunity to increase profit margins.
Also, based on the info in the article it's just a single item in the BOM that's going up (the GPU). So even if the GPU cost 10% more, the entire BOM has not gone up by 10%. Not to mention all the other costs associated with manufacturing and selling a graphics card other than the price of the base components.
 
Last edited:

watzupken

Reputable
Mar 16, 2020
1,007
505
6,070
In my mind, when TSMC passes the 10% cost down to AMD, which subsequently passes it on to the AIB partners, we should only be looking at the GPU itself isn't it? TSMC don't manufacture the entire graphic card. Therefore, it is not justifiable to increase the price of the graphic card by 10% when only 1 of the component price went up.
 

Sleepy_Hollowed

Distinguished
Jan 1, 2017
501
195
19,070
This is insane. I buy AMD GPUs on laptops and desktops because they've open sourced the drivers, but the price gouging might just drive me to integrated AMD GPUs or Intel GPUs.

I can't believe that registered accounts/1 adapter per account has not been enforced everywhere yet.
 

russell_john

Honorable
Mar 25, 2018
115
81
10,660
The prices will rise as much as the market will bear .....

The real fault lies solely on the Consumers for these high prices because if they wouldn't pay for them the prices would drop .... As long as people buy at these prices then the prices will remain high ......
 
The prices will rise as much as the market will bear .....

The real fault lies solely on the Consumers for these high prices because if they wouldn't pay for them the prices would drop .... As long as people buy at these prices then the prices will remain high ......

Majority of them are miners (or gamers that intend to mine to offset the cost). I doubt many gamers that only buy the gpu for gaming only pay those crazy price.
 
As if prices weren't already through the stratosphere, AMD reportedly told its add-in board (AIB) customers that it would raise Radeon RX 6000 GPU prices by roughly 10 percent. Depending on the GPUs that AIBs purchase, that could translate into a $50 to $100 increase in retail prices.
Unlikely. Cards are currently priced well above AMD's recommended MSRPs, with massive profit margins being applied throughout the distribution chain. These prices tend to be primarily determined by what miners are willing to pay for the cards, and have little relation to what they cost to manufacture. If the price of the GPU chip rises by 10% (which, as pointed out above, is only a portion of the card's total component cost), then that in itself isn't likely to affect the already-inflated prices to any significant degree.

What this really is, is the companies further up the manufacturing chain (like AMD) are seeing the inflated prices for graphics cards and deciding that it's only fair that they get their cut. AMD doesn't likely have a particularly large profit margin on their GPU chips, so while a card might be selling for close to double its MSRP, AMD is still only making whatever profits they agreed upon with their manufacturing partners when they thought the cards would be selling at much lower price points.