AMD Reportedly Increases RX 6000 Series Board Partner Pricing by 10%

[Raevenlord]

Posts throughout the Board Channels forums have begun to paint a picture of increased prices for AMD's board partners. That 10% change will reportedly translate towards a $20 to $40 effective increase. While there is no confirmation on whether or not this increase will be passed on to the final, weakest link in the chain - the customer - the current state of and prices in the graphics card market would certainly allow for this price differential to be diluted in the distribution channel.

The pricing change is expected to come into effect in one or two weeks from now, in the next shipment to board partners. This price increase marks the second such move by AMD in the span of two consecutive months; AMD had reportedly already increased board partner pricing by around 9% for the current month of November, compared to October. Reasons for the price increase are cited as either a response to the increased demand of the holiday season - no need for AMD to leave money on the table for board partners to solely pick up themselves - or due to TSMC's recent price hikes for 7 nm wafers. Interestingly, it's reported that AMD has failed to update pricing on any other of its 7 nm node products, such as Ryzen 5000 series - but the competitive and pricing landscape is completely different there.



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[ixi]

What can I say. Beches everywhere

 

[ShurikN]

Considering the actual prices are double the MSRP, these increases are negligible. I mean is your wallet going to notice the difference if the card is already $1000 or more...
They could increase it by 100 bucks and literally nothing would change.
People that care and need every bit of saving aren't in the position to buy the cards anyway. On the other hand, scalpers and miners don't care, they'll goble it at whatever the price is.

 

[Vya Domus]

Can't blame them, I imagine AIBs and retailers make insane profits, of course they'd want a piece of the pie. Makes no difference at the end of day, prices consumer have to pay are still ludicrous either way.

 

[Mysteoa]

Is this due to components prices or business as usual?

 

[ratirt]

Is this due to components prices or business as usual?

It is due to greed

 

[Deleted member 215115]

Yikes! Not a fan of this.

 

[Richards]

Tsmc is always price fixing

 

[ARF]

Considering the actual prices are double the MSRP, these increases are negligible. I mean is your wallet going to notice the difference if the card is already $1000 or more...
They could increase it by 100 bucks and literally nothing would change.
People that care and need every bit of saving aren't in the position to buy the cards anyway. On the other hand, scalpers and miners don't care, they'll goble it at whatever the price is.

This is not exactly correct. The mining itself is very slow ROI activity and I would recommend - don't bother!

 

[Nordic]

I would rather AMD make extra profit and use it for RnD rather than those downstream sellers. If scalpers get a 10% profit cut from this, then good.

 

[ShurikN]

I would rather AMD make extra profit and use it for RnD rather than those downstream sellers. If scalpers get a 10% profit cut from this, then good.

Yeah but if the price increase is from TSMC, then AMD is not making extra profit.
Besides, I feel that selling an RX570 successor for twice the Polaris' msrp is more than enough profit.

 

[ARF]

Yeah but if the price increase is from TSMC, then AMD is not making extra profit.
Besides, I feel that selling an RX570 successor for twice the Polaris' msrp is more than enough profit.

It is not sustainable.
Most people define fixed budgets, and not willing to pay the overcharging prices. They simply postpone the purchase indefinitely till better times regarding the pricing come.

 

[TheinsanegamerN]

I would rather AMD make extra profit and use it for RnD rather than those downstream sellers. If scalpers get a 10% profit cut from this, then good.

I'd rather these multi million dollar companies stop trying to fleece customers for more money when they had already released a generation with worse perf/$ then the previous generation.

 

[ARF]

They will have to drop the prices soon, otherwise the sales will fall off the cliff.
It simply doesn't make sense to sell Radeon RX 5500 XT for more than Radeon RX 6600 XT and over $600-650.

 

[mama]

Impossible to know the real reason for the increase. Someone at AMD looked at a spreadsheet and figured something needed fixing. Consumers will feel it in their wallet, that's the upshot.

 

[TheinsanegamerN]

They will have to drop the prices soon, otherwise the sales will fall off the cliff.
It simply doesn't make sense to sell Radeon RX 5500 XT for more than Radeon RX 6600 XT and over $600-650.

Sales have been record breaking with sky high retail prices. Gaming consoomers have proven they are OK with $800 low end cards.

 

[tehehe]

Sales have been record breaking with sky high retail prices. Gaming consoomers have proven they are OK with $800 low end cards.

I seriously doubt gamers are buying at these prices. I mean some are but not in volume that matters. At this point in time it is better to simply buy game console (even last gen) or stick with what PC you have and try to tackle your backlog. In my opinion all cards are going to crypto miners as this is the only place that can reasonably justify these price tags. The other place that could justify these prices for consumer cards is AI/ML research. Consumer cards from NV can't be used in datacenters legally and AMD ROCM sucks donkey balls with RDNA/RDNA2 (basically it doesn't work at all) so I don't think that is it.

It is due to greed

That's like saying traffic accidents are caused by desire to travel. This explains nothing at all.

 

[Minus Infinity]

Well an academic move on non-existent products. Really they have dropped the ball big time on GPU's and I dioubt they even take the market seriously. No wonder they are losing share.

 

[ratirt]

That's like saying traffic accidents are caused by desire to travel. This explains nothing at all.

No it is not Perhaps it is just - using certain situation like pandemic or miner arguments to charge more cash for products. I dont know how that is similar to your traffic example.

 

[ARF]

Sales have been record breaking with sky high retail prices. Gaming consoomers have proven they are OK with $800 low end cards.

Sales are on the decline:

Overall GPU unit shipments decreased by -18.2% from last quarter, AMD shipments decreased by -11.4%, Intel's shipments decreased by -25.6%

Jon Peddie Research: Q3 Graphics Card Shipments Increase by 12% Year-over-Year | TechPowerUp

 

[defaultluser]

Sales are on the decline:


Jon Peddie Research: Q3 Graphics Card Shipments Increase by 12% Year-over-Year | TechPowerUp

But not for all makers - NVIDIA is up!

It just shows that TSMC are running into even more supply issues than last year! The console makers also all universally agreed that they can't supply as many consoles as planned!

It's going to be another year for fully-vaccinated port/factory/ship workers to be able to staunch all these issues (and only then will we have a good idea of the whole gaming market trends!)

 

[mechtech]

10% on MSRP or actual price??

 

[r9]

It's due to a proven fact that PC enthusiasts have more money then common sense.

 

[chrcoluk]

I would rather AMD make extra profit and use it for RnD rather than those downstream sellers. If scalpers get a 10% profit cut from this, then good.

I agree, but I think we all know this will be passed on to the consumer, and also probably marked up. So %10 increase to AIB, 15% increase to distributor, 20% increase to retailer, 25% increase to consumer lol.

 

[Totally]

10% on MSRP or actual price??

The GPU package, so they were charging AIBs $400 per die on the high-end and $200 on the low. Looks like we'll never see a sub- $250 midrange card again if starting price for a die is $200.