What is Driving the GPU Market??

[Treetops45 1,082]

I recently upgraded the major components in my PC:  - MOBO, CPU & RAM.

I wanted to upgrade the GPU as well, but the one I was looking for was OOS at online suppliers, but available on Ebay, between $800 & $1,000. (Quoted OOS price was $499). $800 is beyond my current budget.

An alternative was available at a Retailer for $825, & a 4 month old review said they had 'picked it up for $200, great GPU etc etc.'

But I am not sure of the veracity of the "$200" price.

My question is, what is driving the shortages & are they likely to get better or worse in the next 6 months??

T45

[goates 576]

Probably not going to get better for a while yet. This video covers a few of the main reasons.

https://youtu.be/FHZc52z2zcY

 

[G-RFRY 1,712]

It`s not just the GPU`s that are effected according to the industry all hardware is now being affected by supply shortages, including chips used in the car industry and some may have halt production on some models with high tech interiors. 

[VeryBumpy 272]

The electronics drought shows how frail companies and supply lines are in today's business world.

'Just in time' production my word not allowed; so many corporate failures of flexibility and adaption.

[W2DR 1,860]

Greed. But, in the words of the immortal Gordon Gekko, greed is good.

[fluffyflops 1,858]

14 hours ago, VeryBumpy said:

The electronics drought shows how frail companies and supply lines are in today's business world.

'Just in time' production my word not allowed; so many corporate failures of flexibility and adaption.

Maybe freight airlines / boats are moving more profitable ppe/vaccines/testing kits rather than rubber duckies

Edited February 2, 2021 by fluffyflops

[G-RFRY 1,712]

Well IF the financial experts are to be believed it will all come crashing down in 12-18months with a world wide recession as bad as 2008.   

[W2DR 1,860]

55 minutes ago, G-RFRY said:

Well IF the financial experts are to be believed it will all come crashing down in 12-18months with a world wide recession as bad as 2008.

Or worse..........

P.S Keep your mask on.

Edited February 2, 2021 by W2DR
kant spel

[SAS443 1,723]

Production issues due to Covid
Supply chain issues due to Covid
Samsung unable to ship enough wafers (production cap)

Some issues are out of Nvidias control - but some aren't.

[psolk 3,040]

1 hour ago, Rob_Ainscough said:

It boils down to extremely poor decision making at the CEO/Executive level that started many years earlier and finally came to a head ... of course they blame it all on the Pandemic. 

Mr Jen-Hsun Huang earned over $11 Million last year in salary and compensation even though he failed to see this coming (or more accurate did nothing and could see it coming) ... with repeated warning signs in prior years where they were not able to meet demand. 

So for some bizarre reason, knowing that his company has a GPU design that runs 25-50% faster than prior generations for half the cost, he didn't think demand would be high??  He was definitely "high", but there is no excuse or blame game when one earns that kind of money yearly.  Rather than invest in Fabrication/Manufacturing facilities years ago, he elected to be "the victim" today. 

The supply issue is going to last even longer than initially anticipated for both nVidia and AMD, not sure about Intel.

Cheers, Rob.

Well just about every CEO failed to see this coming.  Global supply chain shortages, rolling manufacturing plant shut downs based on CV levels globally.  We have manufacturing all over the Globe and EVERY single one is impacted, some worse than others, most products that were 6 week lead times are 6 months.  Every tech manufacturer is impacted unless they were sitting on MASSIVE inventory stockpiles which is not something investors like to see on the books.  

BTW, it's not just tech, we had to replace a dishwasher last week, 12 weeks minimum to get a Bosch, The Snow Blower I wanted went out of stock in October, they've been "indefinitely waiting" ever since, Hankook can't get race tires to the track for months, quite honestly I'm more surprised when something is readily available at this point.  This is SOOOO much bigger than GPU's... 

Edited February 2, 2021 by psolk

[psolk 3,040]

25 minutes ago, Rob_Ainscough said:

Most resellers are doing absolutely nothing to prevent scalping and some appear to be joining in on the markup.  Even EVGA gave up on the notification process they initially established.  

The timeline for getting an AMD 5950X or an nVidia 3090 components at "retail" prices, has now been pushed back to summer (and that's a maybe) and that's almost a full year after the product was released.  This problem started long before COVID.

Cheers, Rob.

This is a big part of the issue in this particular situation that maybe it's just me but this is by far the most pronounced and obvious case I personally remember especially as far as PC components go! 

Completely agree that supply chain issues are one thing, not having a distribution mechanism that protects your customers is unforgivable...   Not sure on Intel but they haven't been without their own issues  https://www.bloomberg.com/news/articles/2020-05-08/intel-accused-by-workers-of-prioritizing-chip-output-over-safety and who knows if part of the 7nm delays are related.  Intel is already a year behind on the 7nm. 

[Reader 2,021]

Perhaps with hindsight, it would have been better to wait until the supply chain was in place before unleashing the blaze of publicity. It seems to be a current fashion to release vast quantities of hyperbole followed by an unfinished product that is not ready, whether that be hardware or software.

[Fielder 3,673]

5 hours ago, Rob_Ainscough said:

 

 So for some bizarre reason, knowing that his company has a GPU design that runs 25-50% faster than prior generations for half the cost, he didn't think demand would be high?? 

Reminds me of Disney's Aladan... 'New lamps for old! New lamps for old!'. And the character Jen-Hsun Huang is saying 'Probably very few Arabians will want to trade in their lamps'.

[Stratocruiser1 134]

MS sold one million copies of FS the first week or on the market and it has been selling well since. a lot of those buyers are gamers and did not have a PC, hence the demand for them and controllers. I saw something at release time that the electronics industry was expecting a 5 billion dollar increase in sales overall for the year.

[fluffyflops 1,858]

13 hours ago, Reader said:

Perhaps with hindsight, it would have been better to wait until the supply chain was in place before unleashing the blaze of publicity. It seems to be a current fashion to release vast quantities of hyperbole followed by an unfinished product that is not ready, whether that be hardware or software.

I'm guessing some clever marketing guru has stats to prove if you release a half baked product and get it blasted all over social media and get some influencers involved to promote it enough then you can make a ton of money.   Whether it's finished or not it's not it their concern after they have your money.