AMD Confronts Steep Q1 2023 Profit Reduction as Chip Sales Tumble 65%
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fantaskarsef
Wow... "client" segment has taken a massive hit... if I understood it correctly, that's CPUs mostly / exclusively?
If so, thinking about mainboard prices, are they? Hopefully?
barbacot
With new reports of die degradation for the new ryzens (running for 3 months or so) I don't think that they should be "THAT" optimistic.
They rushed AM5 - now intel looks like the good guy - imagine that.
Meh, I just bought a 5800X3D for my nephew's gaming pc - forget about AM5 - AM4 FTW!
I don't know about these "reports" being true, or consistent but anyway AM4 was not plagued by these kind of "reports" so better safe than sorry.
If it is true that because of AMD and motherboard manufacturers negligence people have now a degraded AM5 cpu then it's just what AMD needed....
Horus-Anhur
Who could have guessed that overpricing GPUs, CPUs and motherboards, during a major crisis, would result in a crash in sales...
https://media4.giphy.com/media/FbfNWx3LPoy2I/giphy.gif?cid=ecf05e47zw1t81ixhfwxiveep60ixyy25b5fzejs39p6a3la&ep=v1_gifs_search&rid=giphy.gif&ct=g
cucaulay malkin
can't see any reports like those on google.
and that's right after zen4/rdna3 launch. amd need to start selling, if they keep releasing expensive, premium v-cache cpus to compete with intel's mainstream it's only going to make it worse. atm basic s.1700 6/12 (12400f) costs 150eur, while 6/12 am5 starts at 230eur - requiring more expensive boards. to beat intel's 13700k you need a 7800x3d.
barbacot
To the middle of the amd bios issues chapter he talks about degradation - could be lower boost, inability to sustains speed for longer periods - after some more analysis they will have a new report.
[youtube=L7kf8DP2_No]
After all it is only natural that higher quality chips exposed to this voltage to be "only" degraded while lower quality will burn. And it's not only ASUS...
There are also big reddit topics on this with people reporting lower boost speeds after a sudden slow boot with black screen while for a month or so the cpu worked great....so on, so on -and this is bad for them because I don't know if chip degradation after a couple of months of normal use counts for warranty - it should but how is this determined? - AMD should hire a full division of people just to research these chips and if degraded to send a new one, etc.
cucaulay malkin
well, at least there's a good upgrade path for dergraded r7000 series lol
H83
The problem is that the world economy is on the downturn, people are stopping spending money on non essential items, regardless of their price.
This doesn`t mean that some stuff is not really overpriced, like GPUs and MBs, but even if they were 20 or 30% cheaper, sales wouldn`t be much better.
Hardware companies partied like crazy during the covid/crypto times, now comes the hungover...
schmidtbag
It's no surprise really.
They haven't released any RX 7000 series GPUs that the average person is willing to buy; if you're going to spend most of your PC's value on the GPU alone, might as well go with Nvidia.
Meanwhile, the RX 6000 series is basically the price point I'd have expected back when it was first released, but if people waited this long for today's prices, they're fine with waiting for next-gen.
AM5 CPUs are "fine" for their price, not great but not terrible, but the motherboard prices are stupidly expensive for what you're getting. They really should've held off PCIe 5.0 for the 600 series chipsets.
Last but not least, bad drivers and BIOSes have really hurt early adoption. Their hardware has a lot of great potential but it's always undermined by first impressions.
These are all fixable issues, but I hope AMD isn't going to pull an Nvidia and just be like "hmm I guess there isn't a market here, I'll just keep my prices high and reduce production".
H83
They are going to do that, the same way every hardware company is doing it right now, because the market available is much smaller than normal.
Like i wrote before, people are cutting their spending on lots of things, specially in hardware, to save up money, and lower prices aren`t going to change the situation dramatically.
And if i was in a position to decide this sort of things, i would also cut production, not to keep prices up but to avoid having large quantities of stock laying around gathering dust...
schmidtbag
Yes, cutting production makes sense, but not so much keeping prices high. Even if there wasn't a recession, they're still asking too much.
cucaulay malkin
yeah, I'm buying used from now on. The 6800 only cost 400eur and worked out great, will do the same for the next gpu and cpu too, just a new mobo.
butjer1010
hahahah, i was thinking the same.
Solfaur
I also recently went for a 5800X3D (while I was actually planning to go AM5 + 7800X3D). Sure it's an EOL platform, but with a solid X570 board (in my case GB Aorus Master) on a 2023 bios, it's just too convenient. I'll check AM5 in a year or two again, I'm sure it will be a much better experience. I made this mistake before, like jumping on X99 early on and it's just a pain in the ass, and what's worse is that it was on my own expense (insane mobo price, insane DDR4 early adopter price, and the 5820K wasn't really cheap either, lol...).
barbacot
Yeah I also bought for him aorus master X570S - pretty solid - I am impressed! - coupled with 32 GB RAM GSkill 3600 cl14 and a 4080 it runs great.
XP-200
(Chuckles quietly then goes back to playing Diablo 2 on his steam deck). Lol
H83
I agree with you that prices are too high, but only regarding GPUs and MBs, the rest seems to be priced normally and RAM is cheap right now.
But even if prices were lower, sales wouldn`t explode, like many like to think.
ht_addict
People are broke. Period!! Discretionary spending is now severly limited. Food and lodging vs new computer parts?? I love how they say inflation is dropping. Anyone want to point out where?
Venix
I our wallets during covid with the free spending grands etc they got inflated .... Now my wallet appears to be deflating in an alarming pace :P
MrBonk
Most people didn't get crazy free money during covid and most people had to use that money to actually survive. There's been a lot of shit out there throwing out the poor common folk under the bus to blame everyone for the current economy when the result of the current economy is from those at the top exploiting everyone else during the pandemic. Price gouging due to supply issues, price gouging because they *COULD* and then when things finally get back to some semblance of normal they flat out refuse to reduce prices back to pre pandemic levels, using inflation as an excuse. This is no where more evident than the price for food and shelter. And it's no wonder people prioritize that over everything else.
I don't personally know anyone who spent crazy money on non essential items during the pandemic.(I can say I wasted 1500$ on a non essential item like my current GPU. I was certainly ripped off. But I made that choice as I needed the GPU to support W7 for my dual boot. And Nvidia reasonably ended W7 driver support /shrug) Computer parts were essential for a huge portion of the world's workforce for remote work. So some may have used it for that.
I used mine to pay for the 3000$+ repair job I had to have done on my car's engine that decided to go blam-o at the worst time.
Venix
I am not even from the USA I am from Greece and I got ....zip ... nothing ....Nanda ....zip....and spend some of my own savings to survive, that said I have no kids or family to care for my self so I was fine ... That said a lot of people took stimulus money and threw em straight into crypto and other such things . Stimulus money where godsend for some they actually needed em to survive , and the inflation is also party directly a result of the extra money in circulation. It is what it is . By the way all I was trying to do was to make a joke about my wallet deflating :P
