Anyone have any ideas on why GPUs cost what they do right now?

[dainluke]

Not sure if this has been discussed in detail before. But what do you guys think are the reasons for the 30-series cards being so incredibly overpriced?

I just find it odd that a 2070/SUPER could have been acquired for just under R10000 on Wootware around October last year around when I returned to PC gaming, yet I'm seeing pricing for the 3070s at R15000-16000 (not trying to call anyone out, just kinda crazy what pricing has become right now).

The Palit 2080 Ti Dual was selling for around R17500 in February (I thought it looked like a decent purchase), and yet we have a GPU that is supposed to be on par with it costing a few thousand Rand under it that's supposed to have less than half the MSRP and the same performance, a full generation later. I'm not complaining because I currently own a 2080 Ti right now and as bad of me as it may be, I'm kinda glad that a new 3070 can't be grabbed for R10000-13000.

I know many are going to present arguments relating to COVID, imports, demand, supply, and likely many other factors. Just a bit odd how things have transpired. We have the cards in stock sure, but something like the 3070 might land at around $1000. That's absolutely ridiculous if you really think about it.

 

[durimotara]

Think it just passes too many hands on its way down to us each adding on their piece of the pie.

Wootware usually comes in cheap with their palit cards as they are bringing it themselves without distros getting involved. Personally as much as i like them i do feel they are pricing their Palit 3080s pretty high but it is what it is.

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[dainluke]

Think it just passes too many hands on its way down to us each adding on their piece of the pie.

Wootware usually comes in cheap with their palit cards as they are bringing it themselves without distros getting involved. Personally as much as i like them i do feel they are pricing their Palit 3080s pretty high but it is what it is.

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I definitely agree with you but that still doesn't answer the question as to why there are such large price differences. I mean R11000 for an EVGA 2080 XC on Black Friday 2019 vs R18000 for the cheapest 3080. It's just mind blowing. Same goes for something like the Samsung Odyssey screen. It's all just so weird.

 

[SILTECH786]

1. Last year covid was not present stock is now flown in via express cargo flights that alone costs money not small pocket change
2. MOQ stands if this requirement is not fullfilled brands do not supply distros in SA
3. Chip shortages and line productions are fully booked till june 2021 this in itself requires 3rd party premises to produce said item which is then calculated as an "added" expense to brands
4. Not every person in SA has 10/20 million laying around to self import GPUS and if even if they did customs.taxes,logistics back and forth cost money ask me I am busy with galax .

 

[Gurshick]

Its the exchange rate, the 780ti was 699$ in 2013 and the 3080is 699$ in 2020

In 2013 it was R9 to the $
Now its R18

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[dainluke]

1. Last year covid was not present stock is now flown in via express cargo flights that alone costs money not small pocket change
2. MOQ stands if this requirement is not fullfilled brands do not supply distros in SA
3. Chip shortages and line productions are fully booked till june 2021 this in itself requires 3rd party premises to produce said item which is then calculated as an "added" expense to brands
4. Not every person in SA has 10/20 million laying around to self import GPUS and if even if they did customs.taxes,logistics back and forth cost money ask pp I am busy with galax .

That explains everything tbh. That first point alone does it for me. All makes sense now. Basically fuck COVID and 2020. Seems to be the answer to everything tbh.

 

[dainluke]

Its the exchange rate, the 780ti was 699$ in 2013 and the 3080is 699$ in 2020

In 2013 it was R9 to the $
Now its R18

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It's 16.2 right now. I would somewhat agree if the exchange rate wasn't more or less the same last year and in February of this year. Siltech pretty much summed it up flawlessly.

 

[Gurshick]

Close enough [emoji23]

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[dainluke]

Close enough [emoji23]

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I know what you mean in terms of what the old old pricing of 80 class flagship cards used to be. My point is the crazy difference between pricing now just months before COVID.

 

[SILTECH786]

It's 16.2 right now. I would somewhat agree if the exchange rate wasn't more or less the same last year and in February of this year. Siltech pretty much summed it up flawlessly.

R16.20 +R1 =R17.20 dont ever look at tv price , the cheapest 3080 across usa now cost 23k.

 

[dainluke]

R16.20 +R1 =R17.20 dont ever look at tv price...

I'm not sure what you mean. But I'm just going to reply assuming that you're suggesting that the Rand has weakened - something that you're completely correct to point out. I think the first few points you made are the more likely culprits. I think the currency weakening would be a factor but not one that could push a 70 class card up in price by like what, 60-70%? You pretty much said enough with your very first reply. Will leave the thread open though because I'm sure more people have input to give/would like to provide input.

Perhaps this thread looked like me trying to be a wise guy and poke at distributors/resellers. Nah I genuinely wanted someone who knows more than me to come here and enlighten the rest of us who are just sitting here confused. I certainly thank you for your input, as I have no knowledge of ordering millions of Rands worth of GPUs or how COVID has effected the process by which one would carry out such a task, so again - it cleared up a lot.

 

[SILTECH786]

I'm not sure what you mean. But I'm just going to reply assuming that you're suggesting that the Rand has weakened - something that you're completely correct to point out. I think the first few points you made are the more likely culprits. I think the currency weakening would be a factor but not one that could push a 70 class card up in price by like what, 60-70%? You pretty much said enough with your very first reply. Will leave the thread open though because I'm sure more people have input to give/would like to provide input.

Perhaps this thread looked like me trying to be a wise guy and poke at distributors/resellers. Nah I genuinely wanted someone who knows more than me to come here and enlighten the rest of us who are just sitting here confused.

Here is the price of an ASUS tuf in australia +- R28k

https://www.mwave.com.au/product/asus-geforce-rtx-3080-tuf-gaming-oc-10gb-video-card-ac38205

When you buy currency at the exchange/bank you are charged 16.20 +0.45c at current when you purchase/import we are charged at R16.20 + R1.00

 

[dainluke]

Here is the price of an ASUS tuf in australia +- R28k

https://www.mwave.com.au/product/asus-geforce-rtx-3080-tuf-gaming-oc-10gb-video-card-ac38205

When you buy currency at the exchange/bank you are charged 16.20 +0.45c at current when you purchase/import we are charged at R16.20 + R1.00

rtx 3080 | Newegg.com

Search Newegg.com for rtx 3080. Get fast shipping and top-rated customer service.

www.newegg.com

Granted, these are out of stock cards. I would assume the etailer you linked is currently providing an in-stock card at a higher than normal price. I would say that isn't completely 1:1 with say Wootware or a reseller bringing in a limited batch of compeitively priced cards (in context of our market), that gets scooped up within literal hours. I'd say the very fact that TUF card is up for sale means the price is not too appealing in the Australian market. If you look at the Newegg Australia listings the cards should be around R14500 when in stock. That is somewhat between USA and ZA pricing. Not sure what the point of this comment was but yeah. Seriously though - we use expensive cargo planes now. I get it. I never faulted any retailers or resellers because I assumed there was some inherent reason for the pricing. Clarification from an industry expert is all this thread really needed.

 

[SILTECH786]

rtx 3080 | Newegg.com

Search Newegg.com for rtx 3080. Get fast shipping and top-rated customer service.

www.newegg.com

Granted, these are out of stock cards. I would assume the etailer you linked is currently providing an in-stock card at a higher than normal price. I would say that isn't completely 1:1 with say Wootware or a reseller bringing in a limited batch of compeitively priced cards (in context of our market), that gets scooped up within literal hours. I'd say the very fact that TUF card is up for sale means the price is not too appealing in the Australian market. If you look at the Newegg Australia listings the cards should be around R14500 when in stock. That is somewhat between USA and ZA pricing. Not sure what the point of this comment was but yeah. Seriously though - we use expensive cargo planes now. I get it. I never faulted any retailers or resellers because I assumed there was some inherent reason for the pricing. Clarification from an industry expert is all this thread really needed.

Those cards/prices are out of stock at all new egg stores across usa past 4 weeks go try now and find them and then we can converse ,
Even founders cards at best buy stores are over 1300usd the asian market has better pricing due to a few brands having their producing plants their malaysia to name

EVGA 3080 FTW to public consumer -+ R17500 at current

 

[dainluke]

Those cards/prices are out of stock at all new egg stores across usa past 4 weeks go try now and find them and then we can converse ,
Even founders cards at best buy stores are over 1300usd the asian market has better pricing due to a few brands having their producing plants their malaysia to name

EVGA 3080 FTW to public consumer -+ R17500 at current

Afaik genuine retailers like Best Buy who now stock reference cards are not allowed to sell for aggregious prices. I think Nvidia allows all their partners whether retailers, etailers, or AIB card manufacturers; to add slight markups with respect to the situation, as with the MSI Starlit that MSI had no knowledge of, Nvidia will hammer anyone who adds ridiculous markups for no good reason. I would assume that any store not plagued by import expenses (Best Buy USA), will have to adhere somewhat to MSRP.

Essentially if your argument is that cards on Newegg being out of stock perpetually is an indicator Newegg should increase their prices, uhm I'm not too sure if that's really an option. It certainly wouldn't be for Best Buy. It doesn't matter if the first FE to land in the store gets purchased in 5 seconds by a dude who's been sleeping in the store room. Don't get me wrong though, in a country like South Africa consumers respect the fact that cards will not be valued at their direct MSRP conversion from Dollars to Rands. It just helps to have clarification. I'm sure you can understand how odd it is that the 3070 is no more than a slightly discounted version of what the 2080 Ti used to sell for on average. Odd, that's all I'm saying. You provided some very valid points as to why that weirdness is currently being observed. Can't thank you enough.

 

[SILTECH786]

Afaik genuine retailers like Best Buy who now stock reference cards are not allowed to sell for aggregious prices. I think Nvidia allows all their partners whether retailers, etailers, or AIB card manufacturers; to add slight markups with respect to the situation, as with the MSI Starlit that MSI had no knowledge of, Nvidia will hammer anyone who adds ridiculous markups for no good reason. I would assume that any store not plagued by import expenses (Best Buy USA), will have to adhere somewhat to MSRP.

Essentially if your argument is that cards on Newegg being out of stock perpetually is an indicator Newegg should increase their prices, uhm I'm not too sure if that's really an option. It certainly wouldn't be for Best Buy. It doesn't matter if the first FE to land in the store gets purchased in 5 seconds by a dude who's been sleeping in the store room. Don't get me wrong though, in a country like South Africa consumers respect the fact that cards will not be valued at their direct MSRP conversion from Dollars to Rands. It just helps to have clarification. I'm sure you can understand how odd it is that the 3070 is no more than a slightly discounted version of what the 2080 Ti used to sell for on average. Odd, that's all I'm saying. You provided some very valid points as to why that weirdness is currently being observed. Can't thank you enough.

Nvidia handed all their fe stock to best buy so they are free to do as they please simple as that.

How many a time have you seen MSRP being applied here in SA ?

 

[dainluke]

Nvidia handed all their fe stock to best buy so they are free to do as they please simple as that.

How many a time have you seen MSRP being applied here in SA ?

https://www.bestbuy.com/site/nvidia-geforce-rtx-3080-10gb-gddr6x-pci-express-4-0-graphics-card-titanium-and-black/6429440.p?skuId=6429440

Their listings are sold out but MSRP is still being respected. I think it would be a poor choice for them to raise the MSRP as it would create more negative press surrounding the 30-series, something I doubt Nvidia would be too pleased about especially considering the recent 6800 XT benchmarks. I'd say Nvidia are pretty concerned with their public image at the moment. After all they're sandwiching the Big Navi event between their 3070 embargo and launch dates.

 

[Oj0]

https://www.bestbuy.com/site/nvidia-geforce-rtx-3080-10gb-gddr6x-pci-express-4-0-graphics-card-titanium-and-black/6429440.p?skuId=6429440

Their listings are sold out but MSRP is still being respected. I think it would be a poor choice for them to raise the MSRP as it would create more negative press surrounding the 30-series, something I doubt Nvidia would be too pleased about especially considering the recent 6800 XT benchmarks. I'd say Nvidia are pretty concerned with their public image at the moment. After all they're sandwiching the Big Navi event between their 3070 embargo and launch dates.

Everyone lists MSRP until stock is actually available and priced. You can't thumbsuck what it will ultimately be, so you'll see plenty of $699 when out of stock adjusted to $1300+++ the second it's in stock.

 

[SILTECH786]

Nvidia has purchased a rather large facility in QATAR (cool couple of billions) for AI deep learning they will channel excess stock for this purpose once setted up so they are not worried about Big navi yes the gpu without raytracing.

As ojo has just reflected/pointed out he out of most people knows how this industry the operational/roadmaps .

 

[aiccc]

The markups in RSA are much higher than the rest of the world.

I list number 3 of the seven deadly sins as the culprit.


OMG, my eyes

 

[dainluke]

Nvidia handed all their fe stock to best buy so they are free to do as they please simple as that.

How many a time have you seen MSRP being applied here in SA ?

Nvidia handed all their fe stock to best buy so they are free to do as they please simple as that.

How many a time have you seen MSRP being applied here in SA ?

That was never the argument and I responded to your second point in the comment this was targeted at. I merely compared the pricing between the two generations of cards in a context that respected the currency and just basic logic. I merely wanted to know why the prices increased so suddenly and you provided the answer to that question in your very first comment.

 

[Mk1MiLAN]

supply vs demand... thats why

 

[dainluke]

Nvidia has purchased a rather large facility in QATAR (cool couple of billions) for AI deep learning they will channel excess stock for this purpose once setted up so they are not worried about Big navi yes the gpu without raytracing.

As ojo has just reflected/pointed out he out of most people knows how this industry the operational/roadmaps .

Saying Big Navi doesn't have Ray Tracing is a very unfair statement. Of course it will. Perhaps not the same type of implementation as Nvidia, but who's to say Nvidia will be the company devs will optimize for. Otherwise, fair enough to the rest of your comment. Read my comments as though I'm speaking with no emotion, as that is literally the case.

 

[dainluke]

supply vs demand... thats why

Nah. Wootware isn't trying to take advantage of us. My guess is their prices are as good as they can do within reason.

Everyone lists MSRP until stock is actually available and priced. You can't thumbsuck what it will ultimately be, so you'll see plenty of $699 when out of stock adjusted to $1300+++ the second it's in stock.

Fair enough and perhaps you are right. Only time will tell.

 

[Mk1MiLAN]

Nah.

Fair enough and perhaps you are right. Only time will tell.

wadoyou meeeen us south africans are skelms so they mark it up while they can coz why not... at any price it will sell

 

[dainluke]

wadoyou meeeen us south africans are skelms so they mark it up while they can coz why not... at any price it will sell

I don't agree with that at all. I find it very hard to believe that all resellers including Wootware have decided to chuck their morals in the bin. I think Siltech's first comment is the most accurate.

 

[Mk1MiLAN]

I don't agree with that at all. I find it very hard to believe that all resellers including Wootware have decided to chuck their morals in the bin. I think Siltech's first comment is the most accurate.

Money > Morals

 

[dainluke]

Money > Morals

Fair enough. It's definitely a different take on it but perhaps it is a factor. Who am I to say otherwise.