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AMD Confirms Strategy of Restraining Chip Supply to Maintain High CPU and GPU Prices
AMD published their Q4-2022 profits, admitting to investors that it purposefully undersupplied chips in the second half of 2022 in order to maintain high prices and avoid surplus inventory.
This comes as the PC market experiences a considerable drop in demand. According to CEO Dr. Lisa Su, this practice will be limited in Q1. The chipmaking industry has seen a dip in demand compared to the surge during the COVID-19 pandemic lockdowns. With the return of white-collar workers to the office and rising energy prices, the demand for PCs has decreased. However, the undersupply has artificially kept prices high, with graphics cards and desktop processors still being overpriced.
AMD CEO Lisa Su stated to undership GPUs to "balance supply and demand." "We will undership, to a lesser extent, in Q1," she added.
AMD decided it would rather make lower revenues on fewer shipped chips than end up with a surplus of unsold inventory that would have to be sold at a low margin or even a loss. The company's Q4-2022 results exceeded expectations and were well-received by investors.
No 16-pin 12VHPWR for Future Radeon RX 7000 AMD Confirms - 10/25/2022 07:14 PM
AMD in a tweet shares that the 12+4 pin ATX 12VHPWR connector will not be used in any of its upcoming Radeon RX 7000 series next-generation graphics cards....
AMD confirms next-generation Zen 5 CPU microarchitecture, Zen 4 just 8–10% faster IPC - 06/10/2022 08:43 AM
It's a bit early and ambitious but in its Financial Analyst Day 2022 presentation AMD is creating some waves with the mention of Zen 5 CPU microarchitecture....
AMD confirms the release of Zen 4 and RDNA3 this year - 02/03/2022 09:04 AM
AMD announced in its latest financial report that its Zen 4 processors and RDNA3 graphics cards will be released this year, as previously indicated....
AMD confirms that Resident Evil Village will have Ray Tracing support on PC - 03/04/2021 03:22 PM
In its Where Gaming Begins Ep. 3 broadcast yesterday the Radeon RX 6700 XT was officially announced, however, AMD confirmed that Resident Evil Village will feature support for Ray Tracing and Fidelit...
AMD Confirms It Will Launch Zen 3 This Year - We Haven't Seen the Best From AMD Just yet - 07/23/2020 01:29 PM
AMD for the what .. fifth time this year is confirming that ZEN3 will launch this year. This time the turn goes to AMD Executive Vice President of Computing and Graphics Rick Bergman, who confirmed t...
cucaulay malkin
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#6099115 Posted on: 02/02/2023 09:57 AM
still, some "experts" on g3d will always say it's the shortage of materials and AIB price hiking that's directly responsible, even though it's been clear as day since late 2020 amd is doing exactly what nvidia has done by creating artificial scarcity to keep the prices up.
still, some "experts" on g3d will always say it's the shortage of materials and AIB price hiking that's directly responsible, even though it's been clear as day since late 2020 amd is doing exactly what nvidia has done by creating artificial scarcity to keep the prices up.
Krizby
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#6099143 Posted on: 02/02/2023 11:11 AM
LOL, so AMD is not the "Good Guy"
16133
LOL, so AMD is not the "Good Guy"
16133
Horus-Anhur
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#6099144 Posted on: 02/02/2023 11:18 AM
Especially for GPUs, that is a dumb move.
AMD already has a low market share, meaning that most devs will optimize first for NVidia. Some might even not bother with optimizing and testing for AMD GPUs, if there isn't much time and resources left.
And if AMD becomes the third, behind Intel, then the situation becomes even worse.
AMD desperately needs to put more GPUs in gamers hands, or it will make the GPUs inconsequential in the PC market.
Especially for GPUs, that is a dumb move.
AMD already has a low market share, meaning that most devs will optimize first for NVidia. Some might even not bother with optimizing and testing for AMD GPUs, if there isn't much time and resources left.
And if AMD becomes the third, behind Intel, then the situation becomes even worse.
AMD desperately needs to put more GPUs in gamers hands, or it will make the GPUs inconsequential in the PC market.
rl66
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#6099145 Posted on: 02/02/2023 11:21 AM
On other hand in Q4 22 price without taxes were already dropping down and there was some stock in shop...
So it does almost nothing...
On other hand in Q4 22 price without taxes were already dropping down and there was some stock in shop...
So it does almost nothing...
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In other words, we desperately need more competition so that market manipulation won't be so easy. Yeah, nothing new.