Thursday, February 2nd 2023

AMD Restrained CPU and GPU Sales in 2H-2022 to Avoid Unsold Inventory

by
btarunr
 Discuss (200 Comments)
AMD in its Q4-2022 earnings release call disclosed to investors that it "undershipped" chips in the second half of 2022 to keep prices (margins) high and save itself from unsold inventory, in the wake of a steep slump in the PC market. "We undershipped in Q3, we undershipped in Q4," AMD CEO Dr Lisa Su told investors. "We will undership, to a lesser extent, in Q1 [sic]," she added.

Major chipmakers are experiencing an unprecedented slump in demand compared to the spike in demand during the COVID 19 pandemic lockdowns. With high energy prices and the ebb in the pandemic causing much of the white-collar workforce to return to office, there's no longer the kind of demand the PC industry saw in 2021. On the other hand, undersupplies artificially hold prices high, with graphics cards and desktop processors still being unreasonably pricey compared to previous generations. AMD calculated that it would rather make less revenues on fewer chips shipped, than end up with a bloated unsold inventory that it would have to sell at a thin margins, or even at a loss. The company on Tuesday beat expectations to report good Q4-2022 results, which received a thumbs-up from investors.
Source: TechSpot

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200 Comments on AMD Restrained CPU and GPU Sales in 2H-2022 to Avoid Unsold Inventory

#2
Space Lynx
Astronaut
www.techpowerup.com/forums/threads/techspot-amd-admits-to-restraining-chip-supply-to-keep-higher-cpu-and-gpu-prices.304331/#post-4942731

I locked my thread on it, or well requested it be locked. I already said what I wanted to say. I regret not paying a little extra for a 4070 ti now.

Take care AMD it was nice knowing you. :toast: My money is going elsewhere moving forward.

"to save itself from unsold inventory" lol I call bs on this. 6800 XT sold out instantly all last year, even in December. I know because I kept an eye on it on PC Reddit sales. lol nice one. you crack me up AMD.
Posted on Reply
#3
Dirt Chip
You do what you need to do to keep afloat.
AMD, like any other major player, will favor it's shareholders and bank balance before the consumer.
Anyone feeling 'betrayed'- that's only on you. It's a nice lesson to learn about global economy.
You can't have mutual friendship with those company's.
Posted on Reply
#4
Space Lynx
Astronaut
Dirt ChipYou can't have mutual friendship with those company's.
why not? AMD provided me with affordable memories as a child and teen. so I was happy to be loyal to them. until today. now my money goes to Intel and Nvidia. so good luck to their shareholders, lot of people like me who will now be eyeing Intel and Nvidia moving forward. ;) because there is no good guy anymore, AMD used to be, but not anymore. and since it is now an even playing field, I'd rather go Nvidia, at least with Nvidia I won't be drawing 90 watts while I watch youtube as I would with a 7900 XTX LOL - I was willing to overlook that initially, cause of the memories AMD afforded me growing up when I couldn't afford Intel and Nvidia.

Not anymore, even playing field, have fun AMD! My money is going elsewhere now since all the companies are the same for once.
Posted on Reply
#5
Rowsol
I would've done the same thing. The issue isn't the chip, it's the motherboard and RAM. 230 dollars for a very nice chip is already affordable. Why tank it further?
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#6
Dirt Chip
Space Lynxwhy not? AMD provided me with affordable memories as a child and teen. so I was happy to be loyal to them. until today. now my money goes to Intel and Nvidia. so good luck to their shareholders, lot of people like me who will now be eyeing Intel and Nvidia moving forward. ;) because there is no good guy anymore, AMD used to be, but not anymore.
It's not mutual, it's imaginary mutual and goes just until one will get sober.
Your favorite local domestic small company can be your friend, not those giant's. It's not anywhere in their DNA.
Posted on Reply
#7
Space Lynx
Astronaut
Dirt ChipIt's not mutual, it's imaginary mutual and goes just until one will get sober.
Your favorite local domestic small company can be your friend, not those giant's. It's not anywhere in their DNA.
then AMD should have charged more in the old days, they could have, but they chose not to, they knew they were the budget king. and I respected them for that.

so I disagree with your statement.
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#8
Chaitanya
Leather guy from nGreedia already had admited to market manipulation and got away with it while many people defended that nonsense. Anyone having an outrage over this revalations are bunch of hypocrites since AMD is learning from Market leader.
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#9
Space Lynx
Astronaut
ChaitanyaLeather guy from nGreedia already had admited to market manipulation and got away with it while many people defended that nonsense. Anyone having an outrage over this revalations are bunch of hypocrites since AMD is learning from Market leader.
no one is defending Nvidia. but AMD used to be the good guy and looked out for gamers, they don't anymore, so since it is an even playing field, I might as well just go with Nvidia and Intel. at least I won't get 90 watts usage when watching youtube with Nvidia vs a 7900 xtx LOL

hell the energy savings from youtube watching will pay for itself eventually

looking forward to giving my money to intel and nvidia moving forward.
Posted on Reply
#10
Frick
Fishfaced Nincompoop
Space Lynxthen AMD should have charged more in the old days, they could have, but they chose not to, they knew they were the budget king. and I respected them for that.

so I disagree with your statement.
If they had raised prices a lot they would no longer have been the "budget king", and they likely calculated that would be worse for their economy. Now they are no longer the "budget king", and they and the rest of the world is in a different place meaning the calculations change.

Honestly being loyal to corporations is juvenile and naive.
Posted on Reply
#11
wolf
Better Than Native
Space Lynxno one is defending Nvidia. but AMD used to be the good guy and looked out for gamers
They were never the good guy, they just played their hand relative to pertinent factors like market position, penetration, how desirable/performant their products were and more.

It's a shame so many only come to realise this now, but now they're in a much stronger position than 5-8 years ago, so we see a lot more of what the like of Intel and Nvidia do, because now AMD can get away with it (more so at least).

To reiterate and TLDR what I said in the last thread: all these companies do pro-business, anti-consumer stuff, and I find none better or worse than the other at a fundamental level, so I leave the politics aside and concentrate on the right products for me, based on performance, quality, local pricing, features and so on.
Posted on Reply
#12
Space Lynx
Astronaut
Sounds good to me. My money is going to Intel and Nvidia, so good luck to AMD moving forward. Wish them all the best. That's all that is left for me to say, cheers mates
Posted on Reply
#13
maxfly
Both companies play the same games for the same investor reasons. Businesses are never worth getting emotional over if you don't own shares.
Posted on Reply
#14
blu3dragon
Space Lynxwww.techpowerup.com/forums/threads/techspot-amd-admits-to-restraining-chip-supply-to-keep-higher-cpu-and-gpu-prices.304331/#post-4942731

I locked my thread on it, or well requested it be locked. I already said what I wanted to say. I regret not paying a little extra for a 4070 ti now.

Take care AMD it was nice knowing you. :toast: My money is going elsewhere moving forward.

"to save itself from unsold inventory" lol I call bs on this. 6800 XT sold out instantly all last year, even in December. I know because I kept an eye on it on PC Reddit sales. lol nice one. you crack me up AMD.
Unfortunately nVidia admitted to doing the same thing back in November when prices were higher than they are now. I can't find a great quote right now, but here is one "Nvidia said it was selling less to retailers because they have more inventory than current demand".
- www.google.com/amp/s/www.cnbc.com/amp/2022/11/16/nvidia-nvda-earnings-q3-2023-.html
Posted on Reply
#15
usiname
Space Lynxno one is defending Nvidia. but AMD used to be the good guy and looked out for gamers, they don't anymore, so since it is an even playing field, I might as well just go with Nvidia and Intel. at least I won't get 90 watts usage when watching youtube with Nvidia vs a 7900 xtx LOL

hell the energy savings from youtube watching will pay for itself eventually

looking forward to giving my money to intel and nvidia moving forward.
Ok ok after your 10th time to say that your money go for Intel and Nvidia we already know. Honestly, so childish behavior, but but, AMD manipulated the market, Nvidia also, but because AMD was good to me so many years I will give my money to the one who charge 70 class card as 80ti and 80 class as titan. By the way, stop the lies for the power consumption, it was fixed in less than month and even after all this, their hardware is much cheaper than the one offered by Intel and Nvidia. This is better than another buldozer era and this time Nvidia and Intel will be worse than ever, they already doing it.
Posted on Reply
#16
Crackong
If AMD undership = keep prices (margins) high and save itself from unsold inventory = AMD BAD !
If AMD overship = things not going off the shelf no body wants AMD chips = AMD BAD !


I guess next year AMD have to ship the exact amount of chips down to decimal digit to avoid these kinds of fish baits.
Posted on Reply
#17
Bwaze
It's the same reasoning as with cryptomining shortages and price increases through the roof. Only there isn't really an increased demand, but it doesn't matter, they can always supply less than there is demand and create artificial shortages. They will sell their limited stock at high prices - maybe they will earn less than they would with greater quantity at more affordable prices, but thete's also one important thing - percieved value. CPU prices will remain high, and with increased demand after the recession they can then raise them even higher!

AMD can afford that now, since home customer CPUs are just a small portion of their income. And customers? They can crawl back to Intel, who cares.
Posted on Reply
#18
kapone32
AMD gives some transparency and people get up in arms. Then the source being Hardware Unboxed, someone that Nvidia publicly put under their heel would put a spin on it to create a scenario that people are filing social grievances on AMD not being the "value" option anymore. I know that the XTX is a little hard to come by (right now) but the XT is $400 cheaper where I live. The 4070TI is a little cheaper but I would rather have 8GB more Vram than the features I don't need or use. I am actually glad that AMD is displaying some Corporate acumen in controlling their supply chain in a very tight market.
Posted on Reply
#19
evernessince
Space LynxSounds good to me. My money is going to Intel and Nvidia, so good luck to AMD moving forward. Wish them all the best. That's all that is left for me to say, cheers mates
I think you are more emotional than rational right now. Regardless of whether you go AMD, Intel, or Nvidia you are giving your money to a POS company. Splurging on Nvidia because you feel slighted by AMD will only further encourage Nvidia to go even further and that in turn will give AMD even more leeway for it's pricing. AMD and Nvidia are well aware that you have to buy from one of them so either way they are getting your money.

The correct choice was to not buy at all because frankly the entire market needs to learn a lesson.
Posted on Reply
#20
Space Lynx
Astronaut
evernessinceI think you are more emotional then rational right now. Regardless of whether you go AMD, Intel, or Nvidia you are giving your money to a POS company. Splurging on Nvidia because you feel slighted by AMD will only further encourage Nvidia to go even further and that in turn will give AMD even more leeway for it's pricing. AMD and Nvidia are well aware that you have to buy from one of them so either way they are getting your money.

The correct choice was to not buy at all because frankly the entire market needs to learn a lesson.
I'd rather not having transient spikes that go up my ass, a high quality PCB, 20 watts while watching youtube, Frame Generation is next level, a cooler that actually cools properly instead of "110 celsius is the new normal bros" lol

happy to give my money to Nvidia.
Posted on Reply
#21
chrcoluk
Well at least they admitted it, even though was obvious.
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#22
Bwaze
evernessinceThe correct choice was to not buy at all because frankly the entire market needs to learn a lesson.
And majority of customers are apparently taking this route, thay's why the sudden and large downturn in revenues in all the major tech companies.
Posted on Reply
#23
Space Lynx
Astronaut
chrcolukWell at least they admitted it, even though was obvious.
I didn't know if it was that or if the XTX was just a super hot item honestly. I feel a bit tricked. Good lesson to learn though. :toast:
BwazeAnd majority of customers are apparently taking this route, thay's why the sudden and large downturn in revenues in all the major tech companies.
perhaps the government of my country USA, should not be giving them big tax money. I am glad they give the tax money mostly to Intel now and not to TSMC. :)
Posted on Reply
#25
Space Lynx
Astronaut
fancuckerReminder. AMD is not your friend.
they sure did spend a lot of advertising pretending to be the gamers friend this past decade. a good reminder indeed! :toast:
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