[ KitGuru ] Source: AMD to cut price of Fury GPU

[KaRLiToS]

SOURCE

According to our source this price drop is due imminently and will put the air-cooled R9 Fury cards in a much better position. Right now, AMD is still mulling over exactly how big of a price drop it wants to commit to but we should expect to hear more soon. We also don’t know yet if this price drop will also apply to the water-cooled FuryX, which is positioned to compete with the GTX 980Ti around £500.

KitGuru Says: If you are planning on picking up a Fury or a GTX 980 this month, then holding off for a little bit might be a good idea, after all, this price cut could make the Fury a more attractive option.

 

[n0x1ous]

makes sense since they dropped the nano price to $499

 

[sandorski]

Probably need to clear Inventory before release of the next Gen.

 

[ShintaiDK]

Probably need to clear Inventory before release of the next Gen.

That would be a lot of inventory. The reason is more likely that the sales have been less than stellar.

 

[KaRLiToS]

That would be a lot of inventory. The reason is more likely that the sales have been less than stellar.

Do you have any proof ? Or is it again pessimism towards AMD?

http://www.kitguru.net/components/g...cards-continue-to-be-in-short-supply-analyst/

 

[ShintaiDK]

Do you have any proof ? Or is it again pessimism towards AMD?

http://www.kitguru.net/components/g...cards-continue-to-be-in-short-supply-analyst/

You dont discount a product 6-9 months before a new one comes. Specially not one that is supposed to be in short supply, because it sells like a dream if we are to believe you. You may notice 4 months have passed from your article.

You discount it because it doesn't sell. Unless you try and proclaim that AMD is doing it out of incompetence. Or for the sake of Pro Bono?

 

[KaRLiToS]

You dont discount a product 6-9 months in advance that is supposed to be in short supply, because it sells like a dream.

But again you have to release the pessimistic reasons? Instead of yield or HBM supply increasing , etc...

I agree you might be right with what you said :thumbsup:, but your redundant negative comments towards AMD are getting annoying. My 2cents mate.

 

[Arachnotronic]

Do you have any proof ? Or is it again pessimism towards AMD?

http://www.kitguru.net/components/g...cards-continue-to-be-in-short-supply-analyst/

Knowledge of how the industry works would be helpful.

The manufacturing cycle time in the fab, from wafer in to wafer of finished product out is around ~3 months, so call it around 4 months to go from production start to product on the shelves.

If as the AMD optimists here are correct, then AMD is "clearing inventory" TODAY for a product that it expects to keep producing for another several months, minimum.

You can see how this is absurd because if they really just had too many Fury X chips stockpiled up that they needed to move, they would just cut production significantly now and allow the product that's currently in their warehouses to be sold at the higher price.

The fact that they are cutting prices NOW means that at current prices they are not moving the quantity of product that they had hoped to move. The "bean counters" probably figure if they lower prices to $500, they can push enough incremental units to ultimately mean greater revenue than if they kept the price at ~$650 and sold fewer units.

 

[Glo.]

You dont discount a product 6-9 months before a new one comes. Specially not one that is supposed to be in short supply, because it sells like a dream if we are to believe you. You may notice 4 months have passed from your article.

You discount it because it doesn't sell. Unless you try and proclaim that AMD is doing it out of incompetence. Or for the sake of Pro Bono?

What if the products that are 6-9 months from release are Nvidia ones, and AMD's GPU are going to be released MUCH faster?

Discounting the top of the line is making sense now?

Similar thing happened last June when AMD was cutting price on... R9 295X2. And what has been released few weeks later?

 

[KaRLiToS]

Knowledge of how the industry works would be helpful.

The manufacturing cycle time in the fab, from wafer in to wafer of finished product out is around ~3 months, so call it around 4 months to go from production start to product on the shelves.

If as the AMD optimists here are correct, then AMD is "clearing inventory" TODAY for a product that it expects to keep producing for another several months, minimum.

You can see how this is absurd because if they really just had too many Fury X chips stockpiled up that they needed to move, they would just cut production significantly now and allow the product that's currently in their warehouses to be sold at the higher price.

The fact that they are cutting prices NOW means that at current prices they are not moving the quantity of product that they had hoped to move. The "bean counters" probably figure if they lower prices to $500, they can push enough incremental units to ultimately mean greater revenue than if they kept the price at ~$650 and sold fewer units.

Well explained.

 

[ShintaiDK]

What if the products that are 6-9 months from release are Nvidia ones, and AMD's GPU are going to be released MUCH faster?

Discounting the top of the line is making sense now?

If we discard the statements from AMD about when the release will happen. But it still doesn't make much sense. Because too much inventory in any way means over production in terms of expected sales and product planning.

So its more like half an excuse at best.

 

[sandorski]

That would be a lot of inventory. The reason is more likely that the sales have been less than stellar.

Last year at about this time they started clearing Inventory for a June release.

 

[Flapdrol1337]

makes sense since they dropped the nano price to $499

indeed

 

[tential]

Knowledge of how the industry works would be helpful.

The manufacturing cycle time in the fab, from wafer in to wafer of finished product out is around ~3 months, so call it around 4 months to go from production start to product on the shelves.

If as the AMD optimists here are correct, then AMD is "clearing inventory" TODAY for a product that it expects to keep producing for another several months, minimum.

You can see how this is absurd because if they really just had too many Fury X chips stockpiled up that they needed to move, they would just cut production significantly now and allow the product that's currently in their warehouses to be sold at the higher price.

The fact that they are cutting prices NOW means that at current prices they are not moving the quantity of product that they had hoped to move. The "bean counters" probably figure if they lower prices to $500, they can push enough incremental units to ultimately mean greater revenue than if they kept the price at ~$650 and sold fewer units.

Yup. I get people don't want to hear bad things about amd but we can all be realistic about fiji..
Look how many people on this forum have kepler, vs maxwell, vs fiji, vs Hawaii.

Almost no one on here bought fiji even amount the amd user crowd. I specifically bought Hawaii for cf after seeing fiji.

So ya, I'm betting less than stellar sales, which is exactly why I may buy fiji now. I wasn't buying it at its current prices. But with a deep enough discount some may purchase as a stop gal between now and new cards.

 

[tential]

Its not about getting mad, its about filtering useless posts. Makes browsing a lot cleaner when you distinguish and add to ignore the 4 or 5 usual suspects that either dont add, ever, something valuable to the discussion or just post trollbait.

I would rather figure why 980 is getting a price cut if it is such a good seller, and considering Nvidia this time might be late to the party (like that didnt happen for like 3 node changes, but whatever).

I think nvidia is going to remain competitive with amd in prices and vice versa which is great for us. A 980 price drop was needed anyway. The 390x is a better cheaper alternative imo. The 980 is being attacked by fiji and the 390x with the 390x offering a great value and the fiji being faster.

A fiji price cut only further pressures the 980.

Imo of fiji is price cut enough, don't be surprised to see a 980ti price cut or at least some sales

 

[SimianR]

$399 for 390X, $449 for Fury, $549 for Fury X would make a lot of sense IMO. But I don't think the Fury X will see that drastic of a price cut, if any, who knows.

 

[Silverforce11]

I think we discussed this already in detail when Nano was dropped to $499.

Obviously normal Fury has to be lower and the X would be around $549 to compete against the faster $650 980Ti.

Fiji was always overpriced, we called it on release. The only reason it was priced so high, because stock was sold out everywhere due to low volume. We now know the reason is due to UMC's tsv/interposer step being the bottleneck, because they only went mass production recently.

As soon as volume increase, price has to drop to compensate.

 

[tviceman]

I think nvidia is going to remain competitive with amd in prices and vice versa which is great for us. A 980 price drop was needed anyway. The 390x is a better cheaper alternative imo. The 980 is being attacked by fiji and the 390x with the 390x offering a great value and the fiji being faster.

A fiji price cut only further pressures the 980.

Imo of fiji is price cut enough, don't be surprised to see a 980ti price cut or at least some sales

It's strange that the best engineered GPU on the market right now in terms of perf/mm2, perf/w, and OC headroom, is also the worst priced GPU. Usually the best chip in those metrics can be priced relatively well because of it's high versatility and (likely) great yields.

 

[3DVagabond]

Supply and demand. Fiji was supply constrained on release. It's likely better now. This is economics 101 stuff.

 

[Shmee]

It should be good to see price drops for fiji. It may pressure drops on other products as well, both AMD and Nvidia.

 

[AtenRa]

That would be a lot of inventory. The reason is more likely that the sales have been less than stellar.

Or, Supply and demand

They have more chips now after 6 months of production and they can lower the prices to be more competitive responding to NVIDIAs GTX980 price drop.

Do you also believe that GTX980 sales are less than stellar as well ??

 

[Goatsecks]

They have more chips now after 6 months of production and they can lower the prices to be more competitive responding to NVIDIAs GTX980 price drop.

Production catching up with demand is, undoubtedly, a key factor in the price drop. However, I think it is more plausable than not that poor sales of the fury lineup is another key factor in the price drop.

Regarding the GTX980, it is clearly an unsavory choice when compared to the 970 and 980ti. Throw the 390 or 390x into the equation and it becomes a redundant choice, at its current price point. So yes, I should imagine that the 980 sales are extremely poor.

God knows why people are getting so defensive about price cuts.

 

[ShintaiDK]

I think we all like price cuts. Its just to understand why its happening.

 

[LTC8K6]

I think the assumption is that NV will respond in kind, and cut prices.

But of course, both AMD and NV have new product coming.

The question is exactly when?

If the old product is still moving, then why cut prices?

 

[james1701]

To clear the pipeline of EOL stock and make room for the new stock.