Industry sources heard by DigiTimes believe NVIDIA's effort to push its Founders Edition video cards will have an adverse impact on the profitability of the company's add-in board partners in 2017 and beyond. The site says NVIDIA is competing against its own partners because the company desires a larger slice of the earnings pie.
Calculations from the site point out that NVIDIA's top six partners earned a profit of around $159.5 million in 2016, which is just a tenth of what NVIDIA pulled in over the last four quarters;
While supplying GPUs to graphics card makers, including Taiwan-based Asustek Computer, Gigabyte Technology, Micro-Star International (MSI), Palit Microsystems, Hong Kong-based Zotac and China-based Colorful, Nvidia is also competing with these clients in the PC-use graphics card market, noted the sources.
Excluding Nvidia, the sum of profits earned by the world's top-six graphics card suppliers totaled about NT$5 billion (US$159.49 million) in 2016, encouraging Nvidia to step into the segment to slice part of the growing earnings, said the sources.