EVGA's official announcementĮVGA posted a statement on its forums announcing that it won’t carry the next generation graphics cards, but will continue to support the existing ones: Instead, it will focus on selling other products like PC peripherals, motherboards, power supplies and the like. The company isn’t planning any layoffs for now. In contrast, the company makes 300% more profit selling power supplies. Graphics cards comprise reportedly 80% of EVGA’s current business, and most of the company’s revenue comes from Nvidia. Reportedly, one of the main reasons EVGA is done with Nvidia because they didn’t want to get involved with Lovelace’s launch until they could figure out the Ampere supply, as per MLID. Furthermore, there’s at least a year’s worth of Ampere (Nvidia GeForce RTX 3000 series) supply that’s yet to be sold. EVGA wasn't bluffingĪnother YouTube channel, Moore’s Law Is Dead (MLID) reports that Nvidia made AIBs “look like the bad guy”, selling Founders Edition GPUs in low volumes at first at prices that AIBs couldn’t match and make a profit on. Han also complained about Nvidia’s lack of communication about new products, information about pricing and their availability, as well as undercutting EVGA’s prices, forcing them to lower prices as well. EVGA is continuing the current product line. Nvidia would also regularly undercut its partners like EVGA by selling its own first-party branded cardsĭata from Jon Peddie Research shows that while Nvidia’s margins have been increasing year over year, largely because of the need for GPUs in data centers around the world, the margins for graphics card add-in board partners like EVGA have slipped from 25% in 2000 to around 5% in 2022.Han told the following to GamersNexus: “EVGA has decided to not carry the next gen. Han also told GamersNexus that Nvidia regularly mistreated the company - despite it holding 40% of the North American market share of Nvidia cards - by keeping it in the dark on prices until the last minute. Han said EVGA “wouldn’t even entertain the idea of working with Intel or AMD" because of the inherent problems with the business model. Speaking with YouTube channel GamersNexus, EVGA CEO Andrew Han said that while graphics cards are 80% of the company’s business, the firm makes 300% more of a margin on power supplies. This is done to separate this low-margin business from the high-margin business of designing the actual chips. While Nvidia and AMD design the GPU that sits on the board, the actual card itself that slots into a computer is built by third parties such as EVGA, Asus, MSI and Gigabyte. EVGA is committed to our customers and will continue to offer sales and support on the current lineup." EVGA will continue to provide the current-generation products. "EVGA will continue to support the existing current-generation products. "EVGA will not carry the next-generation graphics cards," a company spokesperson said on its forums. EVGA, one of the largest manufacturers of graphics card add-in boards, announced late Friday that it is quitting the board business due to the bleak financial outlook in the sector post-Ethereum Merge and “mistreatment” from its partner Nvidia.
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