Vya DomusHow exactly do you increase your margins by shipping less products ?

It can be calculated. I am going to simplify the math for the explanation.

Say your product cost is $50. You want to sell each at $60 for a 20% margin, a $10 profit. You project you will sell 100 units to 100 people, for a total profit of $1,000.

But wait, you are leaving money on the table!

Of 100 of your customers, 5 of them are willing to pay $100 for your product.
10 will be willing to pay $90 for your product. 15 will pay $80. 20 for $70. The rest, 50, will pay $60.

If you under-ship now and price cut later. The math -
5 x $50 (profit) = $250
10 x $40 = $400
15 x $30 = $450
20 x $20 = $400
50 x $10 = $500

Total profit now? $2,000. You just double your profit. You may anger some customers that pay the premium, and some may not buy later because it was priced out at the beginning and waited too long, but it is a calculated risk. You may never price cut it to half the price or until 2 years later, but it all depends on your goals.

MBA lesson on willingness to pay and pricing. Also, psychology of FOMO, more people will be willing to pay the higher price. Some may be even willing to pay $120. It depends on your market research.

ThrashZoneHi,
Admitted to holding back shipments to keep prices as high as possible and some think this is a good thing
Once acceptance is complete we'll never see prices drop :cool:

It is a good thing. For AMD and its shareholders only.
Us consumers? Well...

@btarunr back your claims with a source.

One that's not you.

Plus Lisa said chips, your saying CPU, GPU AMD make many more chip types(CPU,GPU,SOC,Apu, FPGA,etc), hyperbole -check, total bullshit- possibly

Also I see only common sense here.

Constraints on output- check
Growing sub division -check
Consumer channel overloaded-chrck
I forgot, other divisions who required more chips, I got a ps5 after 2 years!!
eBay full of mining cards- check

The majority only buying Nvidia-check


so allocation placed where it's going to be sold.

if they did different post Rona and MINING bubble collapse they might have supplied more cheap GPU, but you lot wouldn't have bought them anyway.

and AMD would be laying people off and cutting wage's.

The pitch folk weavings funny though, Intel and Nvidia from now on AMD suck nuts, yeah you have fun now because Intel Nvidia are always looking out for the customer, well, ,, they're money, too.

These are companies, indeed not fools Nvidia and AMD are not laying staff off afaik and there share price is stable.
Nvidia's tactics differ but aren't failing or any less anti consumer, that little bit more Gpu is always just round the corner, those on two of the best must be kept very busy, and at microD / scan enough to be on Bessie mate lists.
I'm too lazy for , well, at least too skint and employed for that.

TheoneandonlyMrK@btarunr back your claims with a source.

One that's not you.

Plus Lisa said chips, your saying CPU, GPU AMD make many more chip types(CPU,GPU,SOC,Apu, FPGA,etc), hyperbole -check, total bullshit- possibly

Also I see only common sense here.

Constraints on output- check
Growing sub division -check
Consumer channel overloaded-chrck

eBay full of mining cards- check

The majority only buying Nvidia-check


so allocation placed where it's going to be sold.

if they did different post Rona and MINING bubble collapse they might have supplied more cheap GPU, but you lot wouldn't have bought them anyway.

and AMD would be laying people off and cutting wage's.

There is no source, it was just Techspot taking Su's words out of context, then fabricating a whole fucking story to get clicks. Then all the whiners glom onto it.

In a Tuesday evening investors call, AMD CEO Lisa Su tried to calm investor anxiety by pointing out that the company has been, and will continue to, undership GPUs to "balance supply and demand." Of course, that's just another way of saying, "we're going to keep prices inflated by lowering our output."

"We undershipped in Q3, we undershipped in Q4," Su told investors. "We will undership, to a lesser extent, in Q1 [sic]."

thesmokingmanThere is no source, it was just Techspot taking Su's words out of context, then fabricating a whole fucking story to get clicks. Then all the whiners glom onto it.

No proof anywhere, I know I looked, hence the possible bullshit comment, because it's also becoming the norm round here to expose someone's idea of a drama based on a word from a guy who knew a man with a dog who said.

AMD are shit then the crowds go wild, total balls.

Up your game BTA.

That’s what you have to do to keep Wall Street happy unfortunately.

thesmokingmanThere is no source, it was just Techspot taking Su's words out of context, then fabricating a whole fucking story to get clicks. Then all the whiners glom onto it.

What's another name for Techspot. Hardware Unboxed the channel that coined the term rasterization.

again people, would not be a problem if you would just follow my lead and not by anything.....it really isnt that hard...just ya know, dont.

ZoneDymoagain people, would not be a problem if you would just follow my lead and not by anything.....it really isnt that hard...just ya know, dont.

Julius Economics Theory: "If I don't buy anything, the discount is bigger."

The thing is though, as far as CPUs are considered AMD knew that few people will go for Zen 4 early on, because so many will stick with AM4 for the time being.
And as far as GPUs are considered Navi 31 is pretty rough around the edges and this approach gives them to fix most of that.
So in a way it almost makes too much sense to restrain production for a couple of quarters, even if it is in principle an anti-consumer move.

Intel Arc A750 and A770 are starting to look better and better,…especially so with the recent price cuts of the A750,…

This is AMD… no different from Nvidia or Intel, despite what their supporters are saying
Maybe many people here should stop worshiping a brand

But AMD would never do such a thing! They are our FRIENDS! Only Ngreedia and *BLEEP*lel would ever do this! Radeon is ETHICAL! Ryzen is just great! Why have you forsaken us almighty Lisa Su?

TheinsanegamerNThere is a HUGE difference between cutting production due to low demand, and INTENTIONALLY holding back supply to raise prices. People dont seem to understand this distinction.

Or rather, they don't *want* to understand this disctinction down to clubism and loyalties that they have made for themselves.

AMD lost my confidence when they withheld X370 support for Zen 3, citing a limitation that turned out to never exist and was in reality a fabricated lie which was spread for over a year - that is, until Alder Lake proved ferocious competition. I had high hopes for RDNA 3, but it didn't deliver - what now? I would even give Zen 4 a chance, except... that they've sunset AM4 with many issues which will never be resolved, one of which, the famous EDC bug, has always been a personal pet peeve of mine.

I'll leave the door open - I still have a faint hope the Radeon team will come through with interesting lower range products even if their flagships fluked - but otherwise, AMD has some soul searching to do.

TheoneandonlyMrK@btarunr

The pitch folk weavings funny though, Intel and Nvidia from now on AMD suck nuts, yeah you have fun now because Intel Nvidia are always looking out for the customer, well, ,, they're money, too.

oh something is being sucked alright

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.

So you assume everyone approved of what that douchebag Huang did. They are both dicks.

TheoneandonlyMrK@btarunr back your claims with a source.

One that's not you.

Plus Lisa said chips, your saying CPU, GPU AMD make many more chip types(CPU,GPU,SOC,Apu, FPGA,etc), hyperbole -check, total bullshit- possibly

Also I see only common sense here.

Constraints on output- check
Growing sub division -check
Consumer channel overloaded-chrck
I forgot, other divisions who required more chips, I got a ps5 after 2 years!!
eBay full of mining cards- check

The majority only buying Nvidia-check


so allocation placed where it's going to be sold.

if they did different post Rona and MINING bubble collapse they might have supplied more cheap GPU, but you lot wouldn't have bought them anyway.

and AMD would be laying people off and cutting wage's.

The pitch folk weavings funny though, Intel and Nvidia from now on AMD suck nuts, yeah you have fun now because Intel Nvidia are always looking out for the customer, well, ,, they're money, too.

These are companies, indeed not fools Nvidia and AMD are not laying staff off afaik and there share price is stable.
Nvidia's tactics differ but aren't failing or any less anti consumer, that little bit more Gpu is always just round the corner, those on two of the best must be kept very busy, and at microD / scan enough to be on Bessie mate lists.
I'm too lazy for , well, at least too skint and employed for that.

I gather Lisu Lu is a personal friend of yours or maybe you have a large investment of AMD stock.

www.guru3d.com/news_story/amd_confirms_strategy_of_restraining_chip_supply_to_maintain_high_cpu_and_gpu_prices.html

www.techspot.com/news/97462-amd-admits-restraining-chip-supply-keep-higher-cpu.html

RowsolI 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?

I take a different view. First, the MBO and RAM...part of the territory for a NEW system. I mean, what's really a couple hundred $$ when you are spending 2K or 2.5K?

No, the fact is that people DO NOT WANT to have to resort to water-cooling - the fear and the maintenance. Had AMD/INTEL both released the new 65W CPUS to begin with, more of your average consumer would be buying these. Perhaps the big box stores will now get to carry the new chips and sales will pick up.

Why_MeI gather Lisu Lu is a personal friend of yours or maybe you have a large investment of AMD stock.

www.guru3d.com/news_story/amd_confirms_strategy_of_restraining_chip_supply_to_maintain_high_cpu_and_gpu_prices.html

www.techspot.com/news/97462-amd-admits-restraining-chip-supply-keep-higher-cpu.html

That's not a source, it's an opinion, a regurgitated one at that.

There's like a disconnect. Did you think a companies job is to flood the market with their product, killing its margin????

thesmokingmanThat's not a source, it's an opinion, a regurgitated one at that.

There's like a disconnect. Did you think a companies job is to flood the market with their product, killing its margin????

In a Tuesday evening investors call, AMD CEO Lisa Su tried to calm investor anxiety by pointing out that the company has been, and will continue to, undership GPUs to "balance supply and demand." Of course, that's just another way of saying, "we're going to keep prices inflated by lowering our output."

"We undershipped in Q3, we undershipped in Q4," Su told investors. "We will undership, to a lesser extent, in Q1 [sic]."

LeavenfishI take a different view. First, the MBO and RAM...part of the territory for a NEW system. I mean, what's really a couple hundred $$ when you are spending 2K or 2.5K?

No, the fact is that people DO NOT WANT to have to resort to water-cooling - the fear and the maintenance. Had AMD/INTEL both released the new 65W CPUS to begin with, more of your average consumer would be buying these. Perhaps the big box stores will now get to carry the new chips and sales will pick up.

A needless extra month or two of waiting putting coins in the PC upgrade jar. The problem at hand was never the availability of 65W parts (or lack thereof), it's the intentional withholding of stock in order to drive up ASP (basic law of supply and demand). In essence what you're seeing here is semiconductor companies wanting to retain pandemic-level ASP because they've realized that a lot of folks were willing to pay during this time. The market should stabilize eventually, but it will take some time for that rush to click with investors, until then, expect to see the very worst of AMD, Intel and NVIDIA coming forward.

Needless to say, treat 2016-2018 as a golden age. We likely won't ever be getting a product like the $199 RX 480 in the foreseeable future.

AMD and Nvidia have been holding gpus since 2020 and we know what happened, price increased a lot and they don't want prices to return to how used to be prior 2020 pandemic, midrange for $150? Lisa and Huang -->"No way, we will keep making idiots to pay 500 usd".

claesShortages decrease demand? Supply generates demand? This thread is something else

Increased demand generates shortages!

Unfortunately this is not new news.

Nobody likes to hear it but it happens everywhere. Supply and Demand 101. Just ask the DRAM cartel what happened last year (or was it 2021?). I think AMD has a better image (moral compass) than Intel, Samsung, nVidia etc but they are a big corporation and they will behave like a big corporation. It's all about profits at the end of the day.

Why_MeIn a Tuesday evening investors call, AMD CEO Lisa Su tried to calm investor anxiety by pointing out that the company has been, and will continue to, undership GPUs to "balance supply and demand." Of course, that's just another way of saying, "we're going to keep prices inflated by lowering our output."

"We undershipped in Q3, we undershipped in Q4," Su told investors. "We will undership, to a lesser extent, in Q1 [sic]."

The bit at the bottom doesn't equal the bit at the top though.

As for your other drivel, sling it and drop your spoon fool.

Companies do want to increase their margins and supply chains but also dont want to stay with hundreds of thousands of products no one will buy. Demand drops supply drops it is simple. Companies can reduce supply to mitigate unprecedented expense. What costumer should expect is them companies being honest about the undertaken actions.