NVIDIA: Mainstream GPU pricing expected to normalize by end of January

Posted on Friday, Jan 11 2019 @ 10:22 CET by Thomas De Maesschalck
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At the J.P. Morgan 17th Annual Tech Forum, NVIDIA CFO Colette Kress told analysts that elevated mainstream GPU prices are on track to "normalize" by the end of this month. The retail pricing of GPUs shot up significantly as demand skyrocketed during the cryptocurrency mining craze, and despite the collapse of the crypto markets, GPU prices are still higher than they should be.

NVIDIA expects things will slowly get back to normal, but isn't willing to steer inventory pricing with rebates:
Over at the CES-adjacent tech forum, Colette Kress was questioned about the matter of rebates for retailers, a potential way for Nvidia to lower prices and take the onus off retailers to cut into their own margins. Despite rumours that the green team has employed this approach in the past, Nvidia seems reticent to do the same with the most recent oversupply.

“There are many different ways in terms of how we are trying to work through the overall inventory,” Kress says. “Bundling has been quite popular… we also look in terms of rebates. But you have to be careful with that, and it’s hard to get to, because the overall inventory has probably already worked down the channel. We don’t have necessarily the direct contact as we do with the initial part of our sale that we do with AICs.”
Via: PCGamesN

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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