AMD AIBs have also lost their minds... This is just Anti-Consumer!

Summary

The video delves into the current state of the GPU market, focusing on pricing strategies, supply issues, and the role of AIBs (Add-in Board partners). The speaker contrasts historical pricing practices, like temporary rebates, with today’s practices where manufacturers often pocket rebates. They discuss Nvidia's 'paper launch,' where prices appeared competitive but were undermined by stock shortages and scalping. AMD's pricing strategy also faces criticism for appearing artificially high despite initial stock availability. Overall, the video reflects frustration with rising prices and limited consumer benefits in the current market landscape.

Takeaways

• 😀 The GPU market is highly affected by supply and demand dynamics, with stock availability often influencing pricing and perception.
• 😀 Nvidia's 'paper launch' strategy led to artificially inflated prices due to low availability and scalping.
• 😀 AMD faced challenges with competitive pricing and availability, with fluctuating price ranges from $599 to $1,000.
• 😀 AIBs (Add-in-Board partners) may not pass rebates on to consumers, keeping prices the same while increasing their own margins.
• 😀 AMD's launch saw limited stock for a few days before prices surged due to increased demand and the lack of available units.
• 😀 Temporary rebates used to be more effective in directly lowering consumer prices, but modern practices may not pass on the full discount.
• 😀 The idea of 'fake' pricing comes from the lack of availability and inflated market conditions created by scalping.
• 😀 The competitive pricing initially set by Nvidia and AMD quickly became irrelevant when stock was insufficient for consumer demand.
• 😀 AIBs might be forced to cut into their margins to stay competitive, but if pricing drops too much, they may not profit.
• 😀 The market's reliance on scalping and artificial pricing leads to frustration for consumers and disrupts true market value.

Q & A

What is meant by the term 'paper launch' in the context of GPUs?

A 'paper launch' refers to a situation where a product, like a GPU, is announced or listed with a price but is not actually available for consumers to purchase, often due to limited stock or other supply issues.

Why were AMD's GPU prices initially considered competitive, and how did that change?

Initially, AMD's GPU pricing seemed competitive, especially when compared to Nvidia's offerings. However, after a brief period of availability, the prices shot up due to artificial shortages, scalping, and AIB pricing adjustments, making the initial pricing seem misleading or 'fake'.

What role did AIBs (Add-in Board partners) play in the pricing of GPUs?

AIBs were involved in adjusting prices by offering temporary rebates or making pricing decisions based on margins and stock availability. However, in recent times, AIBs are seen as less likely to pass on savings to consumers, instead retaining the discounts as profit, which has contributed to higher effective prices.

How did scalping impact the GPU market?

Scalping significantly inflated GPU prices, as resellers would buy up available stock and sell it at much higher prices, leading to the perception of artificially high costs in the market, especially during product shortages.

What did the term 'artificial price' refer to in this context?

An 'artificial price' refers to a price that appears lower or more competitive on paper but doesn't reflect the actual market conditions. In this case, the prices were inflated due to shortages or scarcity, making the advertised prices unrealistic.

What happened after the initial release of the AMD GPUs?

After the initial release, AMD GPUs briefly became available at competitive prices. However, due to the limited stock, the prices quickly increased as demand outpaced supply, and scalping further pushed the prices up.

Why is there skepticism about how AIBs handle price adjustments today?

There is skepticism because AIBs may not pass on the benefits of discounts or rebates to consumers. Instead, they are more likely to keep the rebates, resulting in the consumer still paying high prices, despite manufacturers' efforts to lower the cost.

What was the impact of the AIB rebate of $100 in the past?

In the past, when AIBs offered a rebate, it directly benefited consumers, effectively lowering the final price of the GPU. However, there is concern that today, similar rebates might not reach consumers and might be absorbed by AIBs themselves.

How did Nvidia's launch of their GPU affect the market?

Nvidia's launch led to a 'paper launch,' where prices initially looked competitive but were not matched by available stock. This scarcity led to artificial price inflation and exacerbated the issues of availability and scalping.

What is the significance of the pricing adjustment occurring on March 28th?

The March 28th adjustment was crucial because it marked the final price announcement from AMD. This delay suggests that AMD may have been forced to make last-minute price adjustments to remain competitive, potentially sacrificing profit margins in the process.