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NVIDIA GeForce RTX 4080 drops to $1109

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rjohnson11
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2023/05/04 23:46:48 (permalink)
https://videocardz.com/newz/nvidia-geforce-rtx-4080-drops-to-1109
 
PNY Technologies are at the forefront of the RTX 40 deals. Today the company has lowered the price of its custom RTX 4080 XLR8 graphics card from $1199 to just $1139. This price is now listed by US major retailers, but what is worth noting is that Newegg offers an additional $30 discount. This brings the price down to $1109, so $90 below or 8% below the original MSRP.
 
Compared to what we are seeing in other regions, such as Europe with stronger currency, this price adjustment has nothing to with exchange rates. This is a US offer for the card that been priced at $1199 just 5 months ago.
 
PNY’s card with a very long name “XLR8 Gaming Verto EPIC-X RGB” is a factory-overclocked model with boost clock at 2505 MHz, 3.5 slots cooling solution and one 16-pin power connector. This is the highest model the company offers for this NVIDIA SKU. The RTX 4080 currently competes with AMD’s Radeon RX 7900 XTX graphics card, which is available for less (starting from $959) and offers more memory (20GB). It may appear that the path for RTX 4080 is settled, and we are only starting to see discounts on high-end RTX 40 models.
 
I have a feeling the price will need to move even lower to spur more sales. 
 


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    ty_ger07
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 03:38:27 (permalink)
    Unless NVIDIA lowers the official MSRP of the product and gives the AIB rebates to recoup their losses, AIBs don't have much room to lower prices further. NVIDIA was squeezing their profit margin thin with the original MSRP. I think that is why you see us celebrating such minimal price reductions, when bigger reductions would actually be needed to move more product.
    NVIDIA's profit margin is estimated to be more than 60% while AIB's profit margin is estimated to be less than 10%. NVIDIA sells the GPU core and memory to the AIBs at a high price and those components are the ones which have the potential for the most profit margin. The rest of the "jelllybean" parts are rather common and cheap and don't have potential for much markup or profit.
    AIBs cannot afford to lower prices much while NVIDIA chooses to squeeze them out of the market.
    post edited by ty_ger07 - 2023/05/05 03:54:38

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    dragomirc
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 07:07:10 (permalink)
    ty_ger07
    Unless NVIDIA lowers the official MSRP of the product and gives the AIB rebates to recoup their losses, AIBs don't have much room to lower prices further. NVIDIA was squeezing their profit margin thin with the original MSRP. I think that is why you see us celebrating such minimal price reductions, when bigger reductions would actually be needed to move more product.
    NVIDIA's profit margin is estimated to be more than 60% while AIB's profit margin is estimated to be less than 10%. NVIDIA sells the GPU core and memory to the AIBs at a high price and those components are the ones which have the potential for the most profit margin. The rest of the "jelllybean" parts are rather common and cheap and don't have potential for much markup or profit.
    AIBs cannot afford to lower prices much while NVIDIA chooses to squeeze them out of the market.

    So, in order to protect AIBs, lets demand Nvidia to raise original MSRP? 
     
    As an 4080 owner, welcoming this price cut. Hope it will be more price cut in the future.
    Do not care for value lose, let's more gamers have this great card (quiet, low power usage, great performance)
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    ty_ger07
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 07:14:13 (permalink)
    No, not at all. I said that NVIDIA should provide better pricing to its AIBs. I never said NVIDIA should raise MSRP.

    Your logic is odd.

    I was responding the Rjohnson's assertion that the prices should be even lower. The fact is that they can't go much lower without NVIDIA changing its tactics.
    post edited by ty_ger07 - 2023/05/05 07:30:46

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    dragomirc
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 07:35:46 (permalink)
    Please let me know who is holding AIBs to invest & research as Nvidia doing for decades. I will ask him politely to stop doing that.
    In my books, if someone sell you GPU core and memory, other cheap "jellybean" parts, having profit margins 10% sounds fair enough.
     
    Your defensive protection for AIBs who just love to milk $400+ over Nvidia prices is hard to understand.
    And for the record, Nvidia is quite greedy, but who isn't?  Planet is powered by greed, my virtual friend.
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    Hoggle
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 08:46:04 (permalink)
    dragomirc
    Please let me know who is holding AIBs to invest & research as Nvidia doing for decades. I will ask him politely to stop doing that.
    In my books, if someone sell you GPU core and memory, other cheap "jellybean" parts, having profit margins 10% sounds fair enough.
     
    Your defensive protection for AIBs who just love to milk $400+ over Nvidia prices is hard to understand.
    And for the record, Nvidia is quite greedy, but who isn't?  Planet is powered by greed, my virtual friend.


    So let’s say the markup was the 10% you list above and they lowered it 8% so they only make a 2% profit and need to cover support and returns off of that.

    The real problem is NVIDIA controls the MSRP board partners have to use. When the 3090 suddenly dropped $600 it definitely hurt board partners while NVIDIA might have been getting rid of them for cost.

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    dragomirc
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 09:13:13 (permalink)
    Hoggle
    So let’s say the markup was the 10% you list above and they lowered it 8% so they only make a 2% profit and need to cover support and returns off of that.
    The real problem is NVIDIA controls the MSRP board partners have to use. When the 3090 suddenly dropped $600 it definitely hurt board partners while NVIDIA might have been getting rid of them for cost.

    You are absolutely right about $600 MSRP drop.
    But you forgot astronomical price 3090 hold for too long, and all were raked piles of cash from us. And 3090Ti years later reached over $2K.   
    I am taking no side or defend anyone; just can't understand why anyone think business is fair and square.
    In every pond is one Alpha male who make rules.
    AIBs willingly entered Nvidia pond and had to follow rules or leave the pond as EVGA did.
    Thats just my 2 cent.
    post edited by dragomirc - 2023/05/05 09:29:31
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    ty_ger07
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 11:27:30 (permalink)
    Why so hostile and defensive of NVIDIA?

    Weird

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    dragomirc
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/05 13:38:28 (permalink)
    Hostile???
    Guess you have no idea what hostility is. 
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/06 04:17:46 (permalink)
    Regardless of the drama between Nvidia & AIBs, at least it's a start. It is an absurdity to have video cards cost as much as a small used car.

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    ty_ger07
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/06 06:08:08 (permalink)
    dragomirc
    Hostile???
    Guess you have no idea what hostility is. 

    Yeah, the ridiculous assertions and tongue flapping, is hostile.

    You are not being logical. The level of defensiveness is absurd. You could have just said nothing at all. You have provided nothing of value in the discussion of why AIBs haven't lowered prices further.

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    dragomirc
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/06 07:16:04 (permalink)
    ty_ger07
    Yeah, the ridiculous assertions and tongue flapping, is hostile.
    You are not being logical. The level of defensiveness is absurd. You could have just said nothing at all. You have provided nothing of value in the discussion of why AIBs haven't lowered prices further.

    It would be nice to take off AIBs advocate glasses that prevent you to see:
    • I called you my virtual friend, so hostility is out of the question
    • Having a different stand doesn't mean a hostility toward you
    • I respect your opinion without questioning your logic or naming you ridiculous (unlike you did to me)
    • AIBs haven't lowered prices further because their greed overrun Nvidia greed (no more up to $400 over vanilla)
    • Trying to patronize people you don't know at all is a showcase how not to behave
    • Makes people to wonder how old are you
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    ty_ger07
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/06 11:03:01 (permalink)
    I'm not advocating anything. You are.
    All I said is why AIBs can't drop price considerably, in response to RJohnson.
    If that offends your defensiveness of NVIDIA, that is your deal.

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    GTXJackBauer
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/08 00:23:45 (permalink)
    ty_ger07
    Unless NVIDIA lowers the official MSRP of the product and gives the AIB rebates to recoup their losses, AIBs don't have much room to lower prices further. NVIDIA was squeezing their profit margin thin with the original MSRP. I think that is why you see us celebrating such minimal price reductions, when bigger reductions would actually be needed to move more product.
    NVIDIA's profit margin is estimated to be more than 60% while AIB's profit margin is estimated to be less than 10%. NVIDIA sells the GPU core and memory to the AIBs at a high price and those components are the ones which have the potential for the most profit margin. The rest of the "jelllybean" parts are rather common and cheap and don't have potential for much markup or profit.
    AIBs cannot afford to lower prices much while NVIDIA chooses to squeeze them out of the market.



    I don't know the exact percentage but have heard AIBs only make around 10% on high end SKUs and that's before any price reductions.

    Not sure on the legality on this or if Nvidia has every right to act as they are but its clear they are slowly phasing out the AIBs that were once needed from them and now not so much.

    Horrible ethics to say the least.

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    bdary
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/08 08:13:45 (permalink)
    GTXJackBauer
    ty_ger07
    Unless NVIDIA lowers the official MSRP of the product and gives the AIB rebates to recoup their losses, AIBs don't have much room to lower prices further. NVIDIA was squeezing their profit margin thin with the original MSRP. I think that is why you see us celebrating such minimal price reductions, when bigger reductions would actually be needed to move more product.
    NVIDIA's profit margin is estimated to be more than 60% while AIB's profit margin is estimated to be less than 10%. NVIDIA sells the GPU core and memory to the AIBs at a high price and those components are the ones which have the potential for the most profit margin. The rest of the "jelllybean" parts are rather common and cheap and don't have potential for much markup or profit.
    AIBs cannot afford to lower prices much while NVIDIA chooses to squeeze them out of the market.



    I don't know the exact percentage but have heard AIBs only make around 10% on high end SKUs and that's before any price reductions.

    Not sure on the legality on this or if Nvidia has every right to act as they are but its clear they are slowly phasing out the AIBs that were once needed from them and now not so much.

    Horrible ethics to say the least.


    Yeah, even at a 10% profit margin, it doesn't give AIB's much wiggle room to lower prices and still be profitable.


     
     
     
     
     
     
     
     
     
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    yaymz
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    Re: NVIDIA GeForce RTX 4080 drops to $1109 2023/05/08 14:47:38 (permalink)
    It is a really hard to wrap my head around why the 4080 (and lower tier cards) haven't gone down in price more, especially considering price-to-performance ratios and available inventory of 80/70s.   It is almost like 4080/4070 owners are subsidizing the price of the wafer, while getting 4090's to the best price they could (and keep the Peanuts gallery at bay).
    And yes, people will still complain that the 4090 is priced too high at that $1599 MSRP.   
     
    Nvidia needs to push for better yield or better contracts on yields and guarantee certain chip thresholds with TSMC/Samsung, then develop better price strategies. There is clearly more to this than we all know, but definitely a big knot to unwind.
     
    Too bad AMD isn't pouncing as quickly as we could hope.
     
     

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