Yes, it makes sense. AMD's revenue was down from Q1 -> Q2. nVidia's geforce revenue jumped 15% from Q1 -> Q2. nVidia said that they are even supply contraint in the high end because of the demand. There is a reason why AMD cards lost nearly 30% of value in the last 4 months.
:hmm:
Using AMD's total revenue vs. NV's total revenue to extrapolate sales of 1 specific product segment, i.e., desktop discrete GPUs is
finance fail 101.
- AMD sells
CPUs and GPUs. AMD's product segment cash flows currently break down roughly as follows:
Notebook CPUs: 26%
Desktop CPUs: 20.6%
Server CPUs: 13.5%
Graphics GPUs: 23.5% (11.2% Discrete Notebook GPUs,
8% desktop discrete GPUs, 4.3% Professional gaming & consoles)
Chipsets: 12.1%
Embedded CPUs: 4.1%
Desktop discrete GPU segment for AMD only represents approximately
8% of the company's cash flow. (i.e., represent less than
1/12th of the company's value).
Now Nvidia:
NV has:
- Professional GPUs
- Discrete desktop and notebook GPUs
- Mobile and game console chips
- PC microprocessors
Desktop discrete GPUs for NV are projected around
17-18% of the company's cash flow. (i.e., represent less than
1/5th of the company's value).
You cannot compare total revenue of both companies to how the companies are performing specifically in the
desktop discrete GPU segment. That's not even remotely logical. :sneaky:
Funny how you actually believe that GTX680 sold more units worldwide than HD7750 or 7770? good one!! (Only around 3-5% of consumers buy GPUs > $400).
The reason AMD dropped prices is because they appear to have used the
First Mover Advantage strategy in business that allows a company to dictate prices until the competitor shows up. The new price levels also are what ATI used historically. This is just going back to the norm instead of selling GPUs at low margins. By having a technological leadership in the marketplace temporarily, you can dictate higher prices and make pricing adjustments only when necessary (i.e, when the competitor launches). This is no coincidence.
If you look at the prices AMD has settled at now $299-319 for 7950 and $419 and $449 for 7970/7970GE, those are still higher than $269/369 (5850/5870) or $299/$369 (6950/6970). The risk is that NV can beat AMD to market or release much faster product which would force AMD to revert back to price/performance.
What is amazing is that AMD still sells a faster GPU for less $ (7970GE vs. 680). So if anything it is NV that dropped the ball since they have allowed AMD to raise prices by providing less competition than during HD2900-6900 generations. In each of those, the flagship NV card had a 15-20% lead. This generation, 680 is not the fastest GPU.