Does NVidia lose money?

[Banana]

Slightly OT. We all know that the price of hardware usually hits a declining trend as soon as it is released. Heck--the GF3's price dropped even BEFORE the product shipped!

I bought a MSI Starforce GF2 Pro 64MB retail version for $140. This is at least $100 lower than when the product was first sold. Who got hurt?
1. Vendor
2. Manufacturor (MSI), or
3. NVidia?

ST may be causing lots of pain at NVidia when it forced prices to come down.

But--did ANYONE lose money? Even though the product was sold for much less, someone still makes a profit? I don't see too many companies going out of business . . .

1YP (Obviously NOT business savvy)

 

[spoma]

even with the markdowns in the product no one is losing money. they wouldn't be able to sell the product for less than it cost to make. the original high costs cover the manual labor and all of that sort and then the only thing that needs to be covered down the road is the cost of the parts. a company would stop manufactoring a product before they would sell it for a loss. That just hsows you how much of a mark up there really is!!!

 

[Finality]

Most companies when they institute a price match they give the manufacturer a refund on the difference for all the chips they have in stock.

I'm not too sure how that works in the retail chain though. But seeing as it takes 8 weeks to manufacture a new card I'm not sure if discounts are applied immediately throughout the entire distribution chain or just from the factory itself.

As for who takes a loss no one does 🙂

 

[Banana]

Well--that's good, I guess. Everybody wins--except for the suckers who buy "hot off the press" stuff!

1YP

 

[ElFenix]

nvidia probably dropped the price on the gf2 gpu but the main price drop probably came from ram prices.