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What happens to CPUs that stores can't sell?

moonbogg

moonbogg

Lifer
The world is flooded with i7 6900K's that still have prices at over $1,000.00. No one is paying that now, yet everyone refuses to lower the price. They won't lower it, and they won't sell them either. What do they do with them?
 
moonbogg said:
Man, that's rough. They should just sell me one for like $300 or something.
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They're likely prohibited from doing so, as per their Intel Retailer agreements, you know, the ones that give them the big $$$ for kickbacks, based on sales volumes (purchased from disty), which sort of encourages that behavior.

TBH, though, I don't think that I've seen the local MC stock more than maybe 2-3 of the really, really, expensive CPUs. (Consumer CPUs around or above $1000.)
(They have trouble keeping their lesser CPUs in stock, the under-$100 CPUs, that are probably mostly loss-leaders anyways.)
 
The unsold CPUs get shipped back to the manufacturer for credit. They ship them to China, India, or something for emerging markets.
 
VirtualLarry said:
They're likely prohibited from doing so, as per their Intel Retailer agreements, you know, the ones that give them the big $$$ for kickbacks, based on sales volumes (purchased from disty), which sort of encourages that behavior.

TBH, though, I don't think that I've seen the local MC stock more than maybe 2-3 of the really, really, expensive CPUs. (Consumer CPUs around or above $1000.)
(They have trouble keeping their lesser CPUs in stock, the under-$100 CPUs, that are probably mostly loss-leaders anyways.)
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My MC had about 10 1950x in stock when I went to purchase mine. That's probably the most I've seen they keep in stock though. I think they had 1-2 6950x back when they were selling for $1700.
 
kwalkingcraze said:
They ship them to China, India, or something for emerging markets.
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Is that what happened to AMD's AM1 CPUs? LOL! Now, maybe they'll do that with Bristol Ridge APUs, once they release Raven Ridge on AM4 here in the USA, either later this year, or early next year.

Hey, I'd buy a bunch of A8-9600 APUs for $30-40 ea., that would probably be around the right price for them, if Ryzen 3 1200 gets dropped to $89.99 list price, due to competition from Intel's i3-8100 and i3-8350K and friends.
 
kwalkingcraze said:
The unsold CPUs get shipped back to the manufacturer for credit. They ship them to China, India, or something for emerging markets.
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I have to know which "emerging market" is getting the next freighter full of 6900k's to be sold at pennies on the dollar. Whoever they are, I'm sure they will instantly ebay them after snatching them up at $100 or whatever. Maybe they wait like 10 years before selling them. They should realize that I am an emerging market and striving to enjoy the $1,000.00 CPU experience for less money.
 
Reminds me when I wanted to upgrade my mobile C2D P8400 to P9700. The P9700 was over $300. Now it's around $30 and the original P8400 that was priced around $200 now cost $5. Supply and demand in action.
 
Dufus said:
Reminds me when I wanted to upgrade my mobile C2D P8400 to P9700. The P9700 was over $300. Now it's around $30 and the original P8400 that was priced around $200 now cost $5. Supply and demand in action.
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CPU depreciation is your #1 enemy. Demand remains about the same.
 
moonbogg said:
I have to know which "emerging market" is getting the next freighter full of 6900k's to be sold at pennies on the dollar. Whoever they are, I'm sure they will instantly ebay them after snatching them up at $100 or whatever. Maybe they wait like 10 years before selling them. They should realize that I am an emerging market and striving to enjoy the $1,000.00 CPU experience for less money.
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So if you are in an emerging market, look around. Can you find a 39xx or a 49xx around anywhere?
 
The CPUs you see are just sellers who dont liquidate and/or dont have a method of sell-back. Those vendors were always selling those cpu's at high prices, it just so happens that when the normal sellers deplete their inventory that you can actually see these guys.
 
The high-end CPU's typically are sent back to Intel.

Intel bundles and bids them out at a steep discount to large OEM system builders (Dell, etc). The system builders will typically have a guarantee from Intel of a standardized retail price range over a set period of time. This allows them to sell the system below cost, compared to building it yourself, as retail prices have moved very little in comparison to the steep drop negotiated with OEM system builders.

The system builders will then, typically, market the systems as a "deal" or "sale" for high-end equipment.

Once the large sales are complete and the agreed upon period of standardized retail price has expired, prices will then drop. Typically, for the high end chips, they have been mostly sold off at that point.
 
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Sent to places like China for sure. Go on eBay and look at all the Core 2 Extreme parts they have. They don't have the buying power like we do, yet they get all the old great parts. They're still making x58 boards out there!
 
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