Wednesday, February 21st 2024
AMD Tightly Regulating Prices of Successful Radeon RX 6750 GRE in China
The AMD Radeon RX 6750 GRE (Golden Rabbit Edition) is a runaway success in China, where the card is found selling in volumes comparable to GeForce RTX 4060 Ti, and the likes. This is thanks to its aggressive pricing, and decent levels of performance given the maturity of drivers for the older RDNA2 graphics architecture. The RX 6750 GRE comes in two variants—a 10 GB variant with a 160-bit memory bus and 2,304 stream processors; and a 12 GB variant with the full 2,560 stream processors, similar to the globally available RX 6750 XT. For AMD, the success of the RX 6750 GRE couldn't have come at a better time, as it looks to mop up its 7 nm wafer allocation with TSMC with the "Navi 22" silicon, which went underutilized as GPU demand fell with the crypto-mining crash of 2022 and the subsequent move to the 5 nm next-generation; and so it needs these cards to sell at prices at least in line with the MSRP, of ¥2,219 (RMB) for the 10 GB variant, and ¥2,379 for the 12 GB model. Apparently some retailers are selling these cards below the MSRP, and AMD isn't liking this.
The way retail works in general, is that when an item is selling below MSRP, it encourages retailers to negotiate lower prices up the supply chain, which would inevitably cut income for AMD, and set off a feedback loop. To check exactly this, AMD rolled out a slew of measures. It will be monitoring the retail channel for retailers selling the card below MSRP, and impose a set of tiered penalties. For the first offense, a retailer will be penalized ¥500 per card sold below MSRP. For the second instance, this penalty goes up to ¥1,000 per card, and a stoppage of supply to the retailer. The RX 6750 GRE is so popular in China that it isn't just AMD's traditional AIB partners selling the SKU, but also several lesser known Chinese brands, which have purchased volumes of the RX 6750 GRE ASIC, and are belting out cards as the market demands. In related news, AMD is yet to launch the new Radeon RX 7600 XT in the Chinese market, because it doesn't want to disturb the flow of the RX 6750 GRE.
Source:
Wccftech
The way retail works in general, is that when an item is selling below MSRP, it encourages retailers to negotiate lower prices up the supply chain, which would inevitably cut income for AMD, and set off a feedback loop. To check exactly this, AMD rolled out a slew of measures. It will be monitoring the retail channel for retailers selling the card below MSRP, and impose a set of tiered penalties. For the first offense, a retailer will be penalized ¥500 per card sold below MSRP. For the second instance, this penalty goes up to ¥1,000 per card, and a stoppage of supply to the retailer. The RX 6750 GRE is so popular in China that it isn't just AMD's traditional AIB partners selling the SKU, but also several lesser known Chinese brands, which have purchased volumes of the RX 6750 GRE ASIC, and are belting out cards as the market demands. In related news, AMD is yet to launch the new Radeon RX 7600 XT in the Chinese market, because it doesn't want to disturb the flow of the RX 6750 GRE.
11 Comments on AMD Tightly Regulating Prices of Successful Radeon RX 6750 GRE in China
I wonder if AMD would be as quick to penalize retailers that sell ABOVE MSRP....
this sounds like pure lawsuit material for the retailers, it would be a super easy win
I don't see the issue paying 300 ~ 600 euro/dollar for a card that will last some years.
Basically, they get their margins from the regions outside thei primary NA, where the prices look great. The real profits come from the places very distant and unkown, and the "third-world's" consumers pay for US buyers get their prices great. Not to mention, that there' nought QC by AMD for the sold cards. The market is full of "factory renewed" or even bottom of the barrel crap, that being sold as new. Just because US/EU/PRC markets won't allow this dog sh*t to be sold there.
AMD is as scummy as NVIDIA.
i.e.: Contracts that forced OEMs to only buy from a certain manufacturer or they got penalties and lost hefty discounts.
They did not hold in court....