Why does the RX 480 cost more than the 580's on newegg?

Toggle sidebar Toggle sidebar
Solution
Solandri

Quick 101 on economics and how modern web stores work.

First, the stuff you see for sale on Newegg isn't all sold by Newegg. They sell "retail web space" to other sellers, whose products show up along side Newegg's when you search their site. To see stuff which is actually sold by Newegg, scroll down the filters to "Seller" and check only Newegg. You'll see that their price is still around $250. (Newegg isn't the only one who does this. Amazon, Walmart, Sears, and most other big sties also do it.)

Second, this isn't price gouging. Gouging is when a seller increase prices in response to a spike in demand or a drop in supply. What's happening here isn't gouging. What's happening is how the...
Sort by date Sort by votes
photonboy

photonboy

Titan
Jun 20, 2006
21,567
13
85,015
availabilty, thus price gouging.

FYI, AMD (and NVidia) sell the GPU's in bulk for a set cost (the chip, not card). Card manufacturers sell also in bulk to stores at a negotiated price though I'm not sure how often they can renegotiate those deals.

It's likely that NEWEGG and other stores just crank up the price as high as they can as long as cards keep getting purchased, then once there's sufficient supply they are forced to drop the prices since other stores start getting competitive.

Many people are uniformed, and just want the best AMD product (can you explain any other reason to buy at that price?).

Heck, you can buy a GTX1070 for as little as $330USD.

RX-580 is about 10% faster than RX-480.
 
Upvote 0 Downvote
photonboy

photonboy

Titan
Jun 20, 2006
21,567
13
85,015
BTW, there are RX-580's on Amazon selling for $900USD which costs as much as an entire computer with an RX-480.

Update:
WTF? I just looked at Newegg and the RX-480's (four models) all cost $640USD?

The cheapest I can find on AMAZON for an RX-480 8GB is a blower (reference) for $300 and the rest seem to start at $400?

But the NVIDIA pricing is generally very good. GTX1060 6GB starts about $250, GTX1070 $330, and GTX1080 about $500.

Heck, the GTX1080Ti is roughly 2.2x the performance of an RX-480 and starts at $670 which is what NEWEGG is asking roughly for an RX-480.

this is just so screwed up it makes me sad for people who get ripped off (and they can't be "stupid" people mostly. just uninformed)

Do other countries have price gouging laws?
 
Upvote 0 Downvote
Solandri

Solandri

Illustrious
Jan 4, 2012
4,919
98
39,240

Quick 101 on economics and how modern web stores work.

First, the stuff you see for sale on Newegg isn't all sold by Newegg. They sell "retail web space" to other sellers, whose products show up along side Newegg's when you search their site. To see stuff which is actually sold by Newegg, scroll down the filters to "Seller" and check only Newegg. You'll see that their price is still around $250. (Newegg isn't the only one who does this. Amazon, Walmart, Sears, and most other big sties also do it.)

Second, this isn't price gouging. Gouging is when a seller increase prices in response to a spike in demand or a drop in supply. What's happening here isn't gouging. What's happening is how the market works - how it "adjusts" prices even though there's no intelligence behind it. Newegg sold the cards for around $250. Other sellers priced them around $500-$600.

People simply bought out the lower-priced cards (the ones sold by Newegg). Once Newegg was out of stock, the only cards remaining were the higher-priced cards. In other words, the sellers aren't the ones increasing the prices in response to increased demand. The prices are actually being increased by buyers - they're buying up the lower-priced cards until the only ones left are the higher-priced ones. Thus causing the market price to increase even though no seller has increased their prices.
 
Upvote 0 Downvote
Solution
You must log in or register to reply here.

TRENDING THREADS

Latest posts

Moderators online

Share this page

COMPANY
RESOURCES
FOLLOW
Top Bottom