The trade war between the US and China has been raging for a while now, and graphics cards are a minimal part of the goods affected. However, these are some of the most sought-after products in the hardware community, and thus deserving of special attention. Added tariffs, however, will either a) be absorbed by companies, or b) be passed on to customers at increased retail pricing. Since companies don't want to reduce their profit margin, and know consumers will buy less product at higher prices, steps are being taken by AIB (Add In Board) partners from both AMD and NVIDIA in moving graphics card manufacturing out of China.

Options being most seriously considered and acted upon stand as Taiwan and Mexico, where the lack of any additional tariff, added to relatively cheap labor, would allow manufacturers to keep operating costs relatively stable - and thus end user pricing. However, while this search for alternate manufacturing locations continues, the tariffs are already being pressed upon graphics cards makers, and it's expected that pricing of graphics cards will be facing increases of 5-10% in the coming months. As if we needed additional price increases in some old (and especially new) product lines...

The add-in board market decreased in Q2'18 from last quarter, while NVIDIA gained market share. Over $3.2 billion dollars of AIBs shipped in the quarter. The market shares for the desktop discrete GPU suppliers shifted in the quarter, Nvidia increased market share from last quarter, while AMD enjoyed an increase in share year-to-year.

Add-in boards (AIBs) using discrete GPUs are found in desktop PCs, workstations, servers, rendering and mining farms, and other devices such as scientific instruments. They are sold directly to customers as aftermarket products or are factory installed by OEMs. In all cases, AIBs represent the higher end of the graphics industry with their discrete chips and private, often large, high-speed memory, as compared to the integrated GPUs in CPUs that share slower system memory.

Tom Petersen, NVIDIA's director of technical marketing, in a webcast with HotHardware, expressed confidence in the value of its RTX 20-series graphics cards - but threw a wrench on consumers' pricing expectations, set by NVIDIA's own MSRP. That NVIDIA's pricing for their Founder's Edition graphics cards would give partners leeway to increase their margins was a given - why exactly would they sell at lower prices than NVIDIA, when they have increased logistical (and other) costs to support? And this move by NVIDIA might even serve as a small hand-holding for partners - remember that every NVIDIA-manufactured graphics cad sold is one that doesn't go to its AIB's bottom-lines, so there's effectively another AIB contending for their profits. This way, NVIDIA gives them an opportunity to make some of those profits back (at least concerning official MSRP).