AMD Tightly Regulating Prices of Successful Radeon RX 6750 GRE in China

[btarunr]

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.



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[L'Eliminateur]

last i checked MSRP means "Manufacturer SUGGESTED Retail Price", as such it's not a binding legal argument and retailers can choose to ignore the suggestion and go with the pricing the market demands.

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

 

[Ferrum Master]

this sounds like pure lawsuit material for the retailers, it would be a super easy win

What? In China? That's so red as it can be... party will issue a praise.

 

[Recus]

Remember it's ok to pay high prices because AMD is your friend, pro-consumer, ethical company.

 

[AnotherReader]

What? In China? That's so red as it can be... party will issue a praise.

Don't be fooled by the political system. China is as capitalist as anyone else. As for this measure, it is despicable.

 

[P4-630]

Apparently some retailers are selling these cards below the MSRP, and AMD isn't liking this.

Ha...

 

[Denver]

Remember it's ok to pay high prices because AMD is your friend, pro-consumer, ethical company.

Yeah, If AMD doesn't sell products at a loss, they are the bad guys; They are also making huge profits from gaming GPUs; it gets to be obscene.

 

[Leiesoldat]

The legality of this news depends on what the sales contract is between AMD and the retail suppliers. They, AMD, may have a stipulation that a supplier agrees to sell at MSRP or a percentage above instead of discounting below that limit.

 

[trsttte]

this sounds like pure lawsuit material for the retailers, it would be a super easy win

To me it sounds like rage bait, none of this is confirmed in any way and as you well said it's manufacturer suggested price. Retailers can cut into their margin all they want, only thing I think AMD can do is reinforce that there will be no distributor discounts upstream for this product line.

 

[Jism]

Remember it's ok to pay high prices because AMD is your friend, pro-consumer, ethical company.

Yeah, you get a 1440p card capable of pushing 144fps at most games.

I don't see the issue paying 300 ~ 600 euro/dollar for a card that will last some years.

 

[Random_User]

last i checked MSRP means "Manufacturer SUGGESTED Retail Price", as such it's not a binding legal argument and retailers can choose to ignore the suggestion and go with the pricing the market demands.

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

Exactly. AMD's official authorized sellers from recomended distributor list, sell the reference 7800XT for $642,52~, and the 6750 Pulse/XFX Speedster $519,73~ ish. Well done AMD. They either in deal with the sellers, or should get their shit fixed. And this stuff lasts for decade, and there's no AMD's statement on this issue.

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.

 

[L'Eliminateur]

The legality of this news depends on what the sales contract is between AMD and the retail suppliers. They, AMD, may have a stipulation that a supplier agrees to sell at MSRP or a percentage above instead of discounting below that limit.

a contract does not overrule legality, you can put whatever the f you want on a contract and it does not make it legal if it's against the law.
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....