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Nvidia to clear out millions from GPU inventory, likely to increase DRAM demand

C

CaiNaM

Diamond Member
Nvidia is offering discounts of 10%-20% to graphics card makers, with the goal of clearing out several million graphics processing units (GPUs) from inventory before the end of the first quarter of fiscal 2005, which ends April 30, according to sources at Taiwanese makers.

The total GPU inventory to be liquidated by Nvidia has a value of about US$80 million, compared with an average of US$50 million worth of inventory the company had cleared out in previous fiscal years, said the sources.

Officials at Nvidia Taiwan declined to comment on the pricing, but stated that the supply-and-demand situation of its chips remains normal.

Among one of the preferential packages Nvidia is offering till the end of this month, the GeForce FX5200 will be bundled with the GeForce FX5700LE for just US$87, an approximate 10% off their combined normal prices.

While the sell-off is expected to help Nvidia consolidate its market share, the move will also help Taiwanese graphic card makers lower their production costs, which have recently been pushed up due to rising DRAM prices, said the sources.

However, some card makers are also concerned that the ample supply of GPUs may flare up makers? demand for DRAM and therefore, push up DRAM prices further
 
Why do ppl think demand for RAM will increase? Both nV and ATi have had an overfull line-up for quite some time, so it's not like you can't find a card at practically price point. I don't see this spiking prices, particularly if ppl will be holding out for the 6800 series and derivatives, now that they've seen the spectacular benches.
 
Originally posted by: shady06
am i reading this correctly? 5200+5700LE for $87?
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Yes, for just the core chip, not a completed card of any sort. Just the chip.

And only for graphics card manufacturers in bulk quantities. Doesn't help you any.
 
Originally posted by: Pete
Why do ppl think demand for RAM will increase? Both nV and ATi have had an overfull line-up for quite some time, so it's not like you can't find a card at practically price point. I don't see this spiking prices, particularly if ppl will be holding out for the 6800 series and derivatives, now that they've seen the spectacular benches.
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well, in theory, the channel partners buy more gpu's, they will also require more ram to actually build the cards, thereby raising demand of ram chips...

 
Originally posted by: nemesismk2
Sounds like Nvidia is trying to increase their market share even further. 🙂
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Sounds like manufacturers are going to make more money and then screw nvidia by not lowering prices but getting parts cheaper. Also sounds like Nv is trying to liquidate all of their NV30/35 based inventory because when mid-range and low-end next gen cards there's just not going to be any place for them anymore
 
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