EVGA ends partnership with NVIDIA

[Mgard78 141]

4 hours ago, martin-w said:

 

Just because EVGA are no longer an NVIDIA  partner, doesn't mean you have to switch to AMD. There are plenty of other NVIDIA AIB partners.

 

And much better ones at that... I think the only reason why a lot of ppl chose evga was for their RMA service....

[Dave_YVR 1,000]

 There's still Asus, Gigabyte and MSI, who I've always looked at first as my go to manufacturer. 

[micstatic 4,340]

wow!  I've had an EVGA card for as long as I can remember.  Disappointing. 

[lownslo 592]

As a business owner for 31 years, I'm particularly struck with one aspect of this... how does a company suddenly cut a product line they claim constitutes 80% of their revenue stream?  I can understand a GPU AIB partner no longer wanting to work with a company like Nvidia, but ending the partnership this way seems a bit rash and more than a little unplanned.  I'm a long time EVGA customer (my first GPU in 2007, PSU's, and motherboards) and wish them the best.  Hopefully, they're sitting on piles of cash or they may be facing some remarkable financial challenges ahead. 😬

[Luke 782]

14 minutes ago, lownslo said:

how does a company suddenly cut a product line they claim constitutes 80% of their revenue stream?😬

Relatively easily, if that product line was not producing a significant proportion of their profits, as has been suggested. NV has been consistently moving towards eating most of the profit in the graphics card space for themselves.

Cheers!

[lownslo 592]

4 hours ago, Luke said:

Relatively easily, if that product line was not producing a significant proportion of their profits, as has been suggested.

Profits are on paper, a revenue stream is far more critical for insuring survivability including profits.  The revenue stream allows the business to deal with real time costs... payroll, accounts payable, shareholders, et al.  EVGA has a far more limited revenue stream than it did a couple days ago no matter how unprofitable the Nvidia line was for them.

4 hours ago, Luke said:

NV has been consistently moving towards eating most of the profit in the graphics card space for themselves.

Indeed!  Makes one wonder how many other Nvidia AIB's are not happy about their lot in life (as you noted, Nvidia is good at grabbing the money).  Some are willing (and able) to hang onto their Nvidia partnership, while EVGA clearly has had enough.  I just hope they've planned well for this change... I believe EVGA is a good company and I wish to see them continue in the tech biz.

[martin-w 3,265]

9 hours ago, lownslo said:

As a business owner for 31 years, I'm particularly struck with one aspect of this... how does a company suddenly cut a product line they claim constitutes 80% of their revenue stream?  I can understand a GPU AIB partner no longer wanting to work with a company like Nvidia, but ending the partnership this way seems a bit rash and more than a little unplanned.  I'm a long time EVGA customer (my first GPU in 2007, PSU's, and motherboards) and wish them the best.  Hopefully, they're sitting on piles of cash or they may be facing some remarkable financial challenges ahead. 😬

 

Aparently they were making a significant loss on 3090 and 3080. Not sure about lower cards. 

Must result in redundancies though, I would have thought, despite the companies claims.

[G-RFRY 1,735]

AIB partners will pick up the slack and don`t rush to buy a 30 series fearing a shortage after the 40 series launch.

https://www.guru3d.com/news-story/gigabyte-geforce-rtx-3070-ti-with-16gb-memory-sees-registration.html

And reports are MSI are doing a 16GB 3080, this is due to oversupply of the 30 Series chips.

[Luke 782]

11 hours ago, lownslo said:

Profits are on paper, a revenue stream is far more critical for insuring survivability including profits.  The revenue stream allows the business to deal with real time costs... payroll, accounts payable, shareholders, et al.  EVGA has a far more limited revenue stream than it did a couple days ago no matter how unprofitable the Nvidia line was for them.

It depends. Much of that revenue was already allocated for paying NVidia. Depending on the terms for their GPU supply, that money may not have been easily reusable - or even worse, payable in advance of sale or even manufacture!

Cheers

[G-RFRY 1,735]

Nvidia Reportedly Asks TSMC to Rush Lucrative GPU Orders Before US-China Sanctions Bite | Tom's Hardware (tomshardware.com)

[G-RFRY 1,735]

EVGA problems partly self-inflicted outsourcing parts to a third party.

   

  EVGA's Manufacturing, Consumer Policies Minimized GPU Profits, Report | Tom's Hardware (tomshardware.com)

[TheFamilyMan 281]

Yikes!  What a gut punch, though a bit late to this party.

EVGA gcards may not always have been the best, but their warranty and quick and no hassle service were (from first hand experience from more than one instance).  About half of all my gcards were EVGA gcards; enough to know what crappy and lack luster warranty service the other vendors have.  Bought an EVGA 5 year extended warranty for my current $1500 3080 ti FTW3, we'll now see...but I won't be losing any sleep other this (note that my evga 1070 lasted me over 5 years, an astounding duration for a gcard to remain relevant).

[James Callan 66]

My 20-year experience with EVGA is that their cards are excellent, in addition to good customer relations.  What cards were better and why?

[TheFamilyMan 281]

I wasn't questioning the quality of EVGA cards, but in terms of performance and cooling they weren't always outdoing their competitors. 

Edited September 20, 2022 by TheFamilyMan

[martin-w 3,265]

Looks like there might be more to the story than EVGA let on.

 

https://www.digitaltrends.com/computing/evga-policies-affected-profit-margin/

Edited September 23, 2022 by martin-w