Their most recent report reveals that the average selling price (ASP) of graphics cards has doubled in just three years, which is a significant deviation from inflation and cannot be solely attributed to rising chip costs due to Moore's Law faltering or losing significance.
Mindfactory.de may not be the largest online reseller of technology products, it is known for providing valuable insights into the industry. Interestingly, while Intel and AMD both believe in the power of Moore's Law, NVIDIA seems to have abandoned the idea and instead focuses on producing ever-larger GPUs to provide generational performance improvements.
Looking at sales data from February 2020, we can see that the average selling price of an AMD Radeon graphics card was 295.25 euros, while NVIDIA GeForce graphics cards sold at an average of 426.59 euros. These figures resulted in revenue of 442,880 euros and 855,305 euros, respectively. At the time, AMD lacked high-end products, which may have contributed to NVIDIA's higher ASP.
Fast forward to February 2023, and we see that the average selling prices have doubled. AMD Radeon graphics cards now sell at an ASP of 600.03€, resulting in sales of €1.02 million. Meanwhile, NVIDIA GeForce cards now sell at an ASP of 825.20€, generating sales of €1.84 million.
The steep increase in average selling prices of graphics cards in just three years raises important questions about the future of the industry, particularly as gaming and other graphics-intensive applications become more mainstream. It remains to be seen how manufacturers and consumers will adapt to these changes.
