News EVGA's Manufacturing, Consumer Policies Minimized GPU Profits, Report

hotaru251

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evga prolly does have some effect on outcome, but i mean its not anything new that nvidia is an overbearing and controlling partner.

multiple partners have stated that for over a decade.


and having a rep (in the GN video) say Jensen sees AIB's as (basically) leeches shows their future is to ditch AIB entirely (like apple did) and thats harmful to AIB's and not soemthing they can bounce back from while nvidia has literally no downside to it. (as they know ppl will buy as their brand is quality gpu's)

AIB's will never be able to rival Nvidia's prices as nvidia makes the things w/o any 3rd party fees.

also i'd argue that EVGA's step-up, long warrenty, etc are beneficial to EVGA.

it creates loyal trusting customers. which means they are likely to come back to you in future.
step up specifically gets them new sales and they can sell the old gpu as B stock.
 
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I love it when people take the exact same data and try and spin it in the complete opposite direction.
I mean they failed, but it's amusing.
Of course a high volume seller is saying why on earth would you sell low volume add value; that they couldn't imagine it working?!
It's not like outsourcing the manufacturing can't be a profitable thing in itself as getting away from specific industries like GPU's having your manufacturing in a low labor cost area is capital efficient and not having the manufacturing yourself would allow a company tight quality assurance control as they can simply throw back what doesn't make the measure or even stop dealing with a specific company all of a sudden if product standards drop.
Sounds like something that would be costly and actually have to be fixed if it was manufacturing in house under similar circumstance.
Also the article doesn't post any details on if this was a more recent change (cost saving measure) to do with shrinking margins.
 
Also the article doesn't post any details on if this was a more recent change (cost saving measure) to do with shrinking margins.
Well you let us know who has that information then...we'll wait.

Meanwhile back on topic, this is a big sting for me. I've been an exclusive EVGA GPU buyer since the GTX 275/285 days. I chose them due to their renown customer experience when things go south, and things only went south for me once: a dead GTX 970, one of two I had in SLI. They gave me a voucher for the cost since they no longer had the card as the RTX 10xx series was out. It was a zero brainer to sell that second GTX 970 and put all that money to their RTX 1080 Ti SC2 Gaming - a card still used in an old backup gaming rig.

Something is amiss in serious order when a CEO decides to pull the plug on a market segment that comprises 80% of the sales of the company. Is EVGA the canary in a coal mine of all AIB board partners for Nvidia? We'll find out I suppose...
 
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thestryker

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Yeah citing customer positive things as bad because they're not profitable is big business 101. If it doesn't have a measurable link to profits it's bad no matter if it means customer loyalty.

I think we'll all find out with the 40 series whether this is a sign of AIB dying or not by who steps in to fill the gaping hole in the NA market.
 
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martinch

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also i'd argue that EVGA's step-up, long warrenty, etc are beneficial to EVGA. it creates loyal trusting customers. which means they are likely to come back to you in future.
The last two GPUs I purchased were EVGA ones, and the next one was going to be as well. I've never had to use their warranty process, but I'd been impressed having read reports from other owners. There again, I'm one of those who is willing to pay a little more for better customer service...
 

atomicWAR

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Yeah I don't believe much of that nonsense. Nvidia is in full damage control and likely squeezing any and all reviewers/content creators to get their own spin on this nightmare mess with Evga across. I'd trust my toddler nephew's take on Nvidia's AIB partner situation more than Igor (whom I normally give the benefit of the doubt) for the simple fact my nephew has nothing to gain or lose. I can't say the same for Igor in this case.
 
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PEnns

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What a load of krap! Reads like a damage control and PR release from Nvidia, given to Igor to gaslight the whole issue.

Is Igor a formal Nvidia shill or still an undercover one?
 

atomicWAR

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Is Igor a formal Nvidia shill or still an undercover one?
Idt he is full shill or undercover. I think Nvidia put the screws to him and he gave in. All those videos and hardware aren't cheap to be a part of and pissing off Nvidia just prior to the RTX 4000 series release is suicide for those who want review samples. I'll be curious if he has hardware at launch/nda lift. It will be telling if he does.
 
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jcwbnimble

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The real issue seems to be the fact that Nvidia slashed the retail pricing on THEIR reference cards in order to get rid of inventory before the new series was released, and this put too much of a strain on EVGA. As to why just EVGA gave up, it obviously falls to the fact that they don't manufacture their own products and this means their profits were already lower to begin with. So now that Nvidia has slashed pricing, EVGA went from making %5 profit margin ( $100 on a 3090ti) to a loss of $900 per 3090ti. Obviously this is the most extreme because of the price drop, but you can see why EVGA lost their cool when Nvidia did this. It also falls to the fact that EVGA was a Video Card company, as %80 of their revenue came from GPU sales. A company with this small of a focus can't compete with the likes of ASUS, Gigabyte, MSI, all of which are massive conglomerates that can weather both changes in revenue streams and profit margins. EVGA was just too small and too focused for its own good.
 
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Chung Leong

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Some people in this forum don't seem to know what gross margin is. Gross margin = (operating profit + operating expense) / revenue. If you have a lot of programmers and engineers on your payroll, then your gross margin naturally has to be higher compared to firms that do low-end assembly work.
 

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