Why do GPUs cost significantly more than motherboards?

[Anarchist420]

Why do GPUs cost more than motherboards?

 

[DominionSeraph]

Economics.

 

[lehtv]

I'd guess it's because motherboards don't have billions of transistors in them

 

[corkyg]

Not every one does. A more correct question would add the word "some" before each. IOW, I can safely say that some motherboards cost more than some GPUs.

 

[Anarchist420]

I'd guess it's because motherboards don't have billions of transistors in them

That makes sense, although I don't know how many transistors PCHs have. In addition to that, there are the transistors from the audio codec and other things.

 

[Zap]

Why do GPUs cost more than motherboards?

Think of it this way.

GPU = CPU

Graphics Card = GPU on a PCB with RAM = CPU + RAM + motherboard

Does the pricing make more sense now?

 

[masteryoda34]

Why does a Lamborghini cost more than a skateboard? They both have wheels and are vehicles for transportation.

 

[lamedude]

Cooling and RAM I guess.

For reference Intel's list price for H61 is $30 and Z77 is $48.

 

[jaqie]

I would have to agree that the primary reason video cards are more expensive than motherboards (there is scale here, of course a low end card and high end mobo isn't going to fit this paradigm) is because of the video card being a whole core system on a card - motherboard, processor, ram, I/O... the other reason is that they are far higher bandwidth and far faster/newer developed technology with faster turn-around.

 

[Steltek]

An i7-3770k CPU has 1.4 billion transistors. In comparison, an AMD Radeon HD7970 GPU chip has 4.3 billion transistors. The more transistors, the bigger the die and the more complex it is to manufacture. This means you get lower yields of acceptable chips out of each standard silicon disc, which translates to much higher prices per chip.

 

[Lonyo]

Even basic things on a GPU are more complex than a motherboard.
The PCB on a GPU might be much smaller, but it's also more complex (has more layers).
You have to route potentially a 384-bit RAM bus compared to 192-bit (triple channel) for a motherboard.

GPUs are also built on leading edge processes, meaning they are expensive to make, while motherboard chips are typically built on much older processes, and while the size may be bigger, the yields are good and costs are lower, so the chips can be sold at a cheaper price.

 

[JackMDS]

On the other hand DVD drives that inside are more complicated than Mobos and Video cards are extremely inexpensive.

Todays prices are much more a reflection of the "Suckers" that they are selling it to rather than the production value of the product.

Tiny jars of cosmetic products are even better example.

 

[dagamer34]

Cooling and RAM I guess.

For reference Intel's list price for H61 is $30 and Z77 is $48.

I like how the same amount of RAM became more expensive on the 6970 compared to the 6950.

 

[cubby1223]

Cooling and RAM I guess.
...
For reference Intel's list price for H61 is $30 and Z77 is $48.

Don't forget to add in research and development. R&D costs of a chipset are divided out amongst millions of computers. R&D costs of a gpu are divided out amongst maybe just tens of thousands of computers?

 

[mfenn]

On the other hand DVD drives that inside are more complicated than Mobos and Video cards are extremely inexpensive.

Uhh, what? Let's be charitable and say that a DVD drive has 100 mechanical parts and a 3 million transistors. So that's 3,000,100 different parts that can interact. A GPU has billions of transistors in the GPU core alone, which is billions of parts that interact.

 

[mfenn]

I'd guess it's because motherboards don't have billions of transistors in them

The correct answer. Designing and fabricating something that big is incredibly expensive.

 

[JackMDS]

Uhh, what? Let's be charitable and say that a DVD drive has 100 mechanical parts and a 3 million transistors. So that's 3,000,100 different parts that can interact. A GPU has billions of transistors in the GPU core alone, which is billions of parts that interact.

Yap, but the price of components that are manufactured from silicone wafers by automatic chemical processes don't scaled so much by numbers, Mechanical parts are.

In any case the new Video card should be much more expensive than DVD drives, but Not that expensive. Todays prices are really controlled by Marketing. You can bet that sizable amount is added to the retail price because the Marketeers read posts on forum like ours and know how to "stretch" the price to the fanboys enthusiasts.

 

[ElFenix]

video cards aren't sold on a cost plus basis so this notion of 'well cuz there's more stuff' isn't really appropriate. AMD and nvidia price their GPUs to where they think they can maximize profit. if lowering the price by a dollar didn't increase sales enough to make up for the loss of that dollar of profit per sale, they won't do it.

 

[JackMDS]

video cards aren't sold on a cost plus basis so this notion of 'well cuz there's more stuff' isn't really appropriate. AMD and nvidia price their GPUs to where they think they can maximize profit. if lowering the price by a dollar didn't increase sales enough to make up for the loss of that dollar of profit per sale, they won't do it.

Cost + Reasonable profit started to disappear in the last decade of the 20th century.

 

[mfenn]

Yap, but the price of components that are manufactured from silicone wafers by automatic chemical processes don't scaled so much by numbers, Mechanical parts are.

I think you're missing the point. The cost of actually manufacturing the GPU, while significant, is only a small part of the overall cost. The R&D that goes into a GPU and all it's related software is the primary cost center.

 

[wirednuts]

I think you're missing the point. The cost of actually manufacturing the GPU, while significant, is only a small part of the overall cost. The R&D that goes into a GPU and all it's related software is the primary cost center.

yeah and that cant really be counted, which is why they just set the prices where they think they need to be. plus the fact the competition is very low.

 

[mfenn]

yeah and that cant really be counted, which is why they just set the prices where they think they need to be. plus the fact the competition is very low.

Sure, they are going to charge what the market can bear. The reason that there isn't a flood of cheap knockoffs (like in the DVD burner space) is that the R&D costs are so enormous that nobody else can develop a competitive GPU from scratch.

 

[JEDIYoda]

That makes sense, although I don't know how many transistors PCHs have. In addition to that, there are the transistors from the audio codec and other things.

You can thank Ron Paul for the cost GPU`s !!!

 

[JackMDS]

LOL, the DVD example on my side was the illustrate abstract thinking and Not a direct compare of price.

I do Not think that giving the Development and RD expense that serious Graphic cards can go at sub $100.

Even rather old entry level cards (8400GS, GeForce 210) cost more than $20.

However Technology wise, No matter what was said in the discussion above there is nothing that justify the current cost of High End cards.