Increasing sales of Nvidia graphics cards to affect profitability of other suppliers

[MentalIlness]

http://www.fudzilla.com/news/graphics/42710-nvidia-s-founders-chip-miffs-partners

Killing partner’s profits

Nvidia’s Founders Edition graphics cards have angered its own partners who are complaining that the range is gutting their own profits.


For those who came in late Nvidia has been pushing sales of its own brand Founders Edition graphics cards, and its partners in Taiwan and China are worried that their profits this year are going to suffer.

According to Digitimes, they feel that increasing sales and profits earned by Nvidia from PC-use graphics cards is being made at their expense.

While supplying GPUs to graphics card makers, including Taiwan-based Asustek, Gigabyte, MSI, Palit , ,and Colorful, Nvidia is directly competing with them.

Excluding Nvidia, the sum of profits earned by the world's top-six graphics card suppliers totalled about $159.49 million. Looking at these figures Nvidia rubbed its paws and said “I’ll be haven somodat” and stepped into the segment.

It is not clear at this point how much Nvidia has taken from its suppliers, but this sort of thing makes you question your business relationships.




http://www.digitimes.com/news/a20170124PD209.html

Efforts by Nvidia to push sales of its own-brand Founders Edition graphics cards are likely to affect the profitability of graphics card suppliers in Taiwan and China in 2017 and beyond, according to industry sources.

Increasing sales and profits earned by Nvidia from PC-use graphics cards has prompted the company to actively promote sales of the Founders Edition graphics cards, said the sources.

While supplying GPUs to graphics card makers, including Taiwan-based Asustek Computer, Gigabyte Technology, Micro-Star International (MSI), Palit Microsystems, Hong Kong-based Zotac and China-based Colorful, Nvidia is also competing with these clients in the PC-use graphics card market, noted the sources.

Excluding Nvidia, the sum of profits earned by the world's top-six graphics card suppliers totaled about NT$5 billion (US$159.49 million) in 2016, encouraging Nvidia to step into the segment to slice part of the growing earnings, said the sources

 

[Phynaz]

Who manufactures the Nvidia branded cards?

 

[raghu78]

Who manufactures the Nvidia branded cards?

Foxconn

https://www.reddit.com/r/nvidia/comments/55w6vi/does_nvidia_manufacture_their_graphic_cards/

 

[VirtualLarry]

While supplying GPUs to graphics card makers, including Taiwan-based Asustek, Gigabyte, MSI, Palit , ,and Colorful, Nvidia is directly competing with them.

Excluding Nvidia, the sum of profits earned by the world's top-six graphics card suppliers totalled about $159.49 million. Looking at these figures Nvidia rubbed its paws and said “I’ll be haven somodat” and stepped into the segment.

It is not clear at this point how much Nvidia has taken from its suppliers, but this sort of thing makes you question your business relationships.

Isn't this what directly killed 3DFx? They cut off their partner board mfgs, and went about making their own cards, and promptly went out of business.

I know it's not exactly the same, Nvidia hasn't actually cut off their board partners (yet?), but it's an ominous move in the same direction as their predecessor, 3DFx.

Edit: Could this just be a sign of NVidia's ever-present greed, and wanting the entire market for their cards to themselves, and then ... maybe they'll go out of business too, and Intel or AMD will swallow them up? (Or maybe Imagination Tech, or one of the other ARM GPU vendors?)

 

[tential]

Isn't this what directly killed 3DFx? They cut off their partner board mfgs, and went about making their own cards, and promptly went out of business.

I know it's not exactly the same, Nvidia hasn't actually cut off their board partners (yet?), but it's an ominous move in the same direction as their predecessor, 3DFx.

Edit: Could this just be a sign of NVidia's ever-present greed, and wanting the entire market for their cards to themselves, and then ... maybe they'll go out of business too, and Intel or AMD will swallow them up? (Or maybe Imagination Tech, or one of the other ARM GPU vendors?)

This is a sign of how corporations work. Nvidia is legally obligated to make every dollar humanly possible for their shareholders. And they have..... if only I had listened to my own advice and bought stock in Nvidia equivalent to the 1070 worth

 

[StrangerGuy]

The real surprising figure is there is only $159.49 million profit for a year for the six largest AIBs combined. That's a laughable $3 average profit per card if we assume 50M units sold in an age where ASPs have been going up. I think my supermarket earns better margins selling cooking pots.