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AMD set to increase Radeon HD 5800 prices?

Last response: in Graphics & Displays
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a c 173 U Graphics card
October 29, 2009 1:07:36 PM

I am glade that I don't pay retail any more as to the price jump it was of no surprise but is unpleasant thus forcing many to either spend more or shop at a lower price point. :fou
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October 29, 2009 1:45:39 PM

That's a surprise. You rarely see inflation in electronics. I don't blame them.
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a b U Graphics card
a b À AMD
October 29, 2009 2:15:02 PM

I'm not surprised really. Look at it this way, there are OEM partners out there that make Nvidia and ATI cards. So when ATI comes out with a cheaper card that outperforms the competitors top single GPU for alot less money, they get stuck with alot of older cards. So if the prices rise, they start selling more of the older cards again since the new card isn't so attractive at a higher price. The other option would be to lower the prices on the older cards to compensate, but then they lose alot more money instead of gaining.

Look at the 4890 for example. Most are going for 180-200$, but you could get a 5850 for 50-60$ more that gives you DX11, more performance, eyefinity, and a bunch more. So now the 4890's get stuck on the shelf while the 5850's are flying out the door. The options now are to drop the 4890 to 150-160$, which probally cost 180$ to manufacture, resulting in a loss. Or raise the 5850 up to the 300$ price point, enabling more money to be made from the 5850, and then being able to keep the 4890 at it's current pricing of 180-200$.

If you look at Nvidia's situation it's even worse, so any OEM making ATI, and Nvidia cards(Gigabyte,XFX..etc) would be shooting themselves in the foot by selling a GPU for 260.00$ that outperforms a 350.00$ card with older technology.

I think this shortage was created so that older cards stock would be depleted more before bringing out the new cards in bulk. Thus allowing to market skim more by raiseing the prices on the best and selling the last gen to the people that cant afford the new tech. It's all business, and what they do is try to make money and cut losses when they can, which is exactly what is happening now in my opinion.

PS: With chrismas just around the corner, this will always happen as well. Just look at what hype did for the Xbox 360, and the Wii. Fake a shortage, and more people will want it more. Charge top price before christmas, and drop it back a week or two after claiming that there is no longer a shortage thus now allowing for cheaper prices, and a higher volume of sales because of the demand at that time. If you look at a few different websites around you may of noticed that not only are the 5000 series cards increasing, but the 4890's are now rising as well. I've seen quite a few 5770's that are now 210-220$, just above the 4890's price, or right on it. So now the 4890's are starting to sell out since they are faster than the 5770 at the same price.
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October 29, 2009 2:17:51 PM

Folks... its Theo.


I've ordered a lorry of salt, should be here by tomorrow evening.
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a c 130 U Graphics card
October 29, 2009 2:20:32 PM

To be expected to be honest. If it does happen then it really shouldn't be a big surprise to anyone, disappointment maybe but surprise. No.
I wasn't about to buy at the release price point, the reviews of what DX11 could do made me think maybe i would but this move if its correct would just put me off again.
While DX11 looks really nice and no doubt has other benefits, MT etc. I'm not exactly struggling to play anything at the minute and will be quite happy to run along at DX10.1 for a good while if the pricing remaining artificially high, hey you never know it may turn out that Nvidia come in with a good priced DX11 card half way through next year that performs and is cheaper. It would be my first ever Nvidia card, or maybe LRB ?
Bottom line here they need to be careful. It was good performance at decent prices that got them back in the game, it would be silly if trying to make too much back too quickly put them out again.

Mactronix
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a c 130 U Graphics card
October 29, 2009 2:21:00 PM

Amiga500 said:
Folks... its Theo.


I've ordered a lorry of salt, should be here by tomorrow evening.



Something i was also thinking

Mactronix
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a c 147 U Graphics card
a b À AMD
October 29, 2009 2:45:32 PM

just looking at the source i doubt it if it's true. but at the same time there are some sense that 5800 series price will going up. what was in my mind for while is with 5800 shortage everywhere the is no reason to put the price down instead the price can go up because of high demand.

maybe they create this shortage so they can maintain 4800 series current price. just my opinion though :kaola: 
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a c 86 U Graphics card
a b À AMD
October 29, 2009 3:12:21 PM

http://plaza.fi/muropaketti/amd-nosti-ati-radeon-hd-580...
it's in finnish but basically it says 5850 has got up by 30 euros and 5870 20 euros. They confirmed it with asus and a local finnish retailer, both said that amd had increased the prices on the chips.
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a b U Graphics card
October 29, 2009 4:53:47 PM

There was far too large a gap between the 5850 and 5870 to start with, now it looks a lot more sensible.

Edit - not sure raising the cost of the 5870 was a great idea also.
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a b U Graphics card
October 29, 2009 9:21:25 PM

Hmmm, that Finnish site is a good reference.

Id just like to point out, these prices are the same as the 285 when released, and more importantly, our loacal area Ape said from the gte go, these cards were underpriced, and ATI could get more for them.
Some early buyers seemed to maybe have gotten a good deal.
No one likes higher prices, unless it pure donation type beliefs, and gfx cards arent girl scout cookies, but the pricing still seems fair, and since both nVidia and ATI havnt been pulling huge profits, the bottom on pricing was hit, now its rebounding, unfortunately at the cost to us, the consumer.
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a b U Graphics card
October 29, 2009 9:30:53 PM

Simple supply and demand. If AMD had continued to sell these cards at those prices people would be lambasting them for having clueless people in control of the finances.

Edit - a lot of people thought the 5870 was overpriced at launch but if that is being raised in price also it would appear that many people disagree.
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October 29, 2009 10:35:44 PM

I'm not too worried Nvidia is around the corner, so we should see a price war:) 
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a b U Graphics card
October 29, 2009 10:54:26 PM

Short supply high demand its free market economy. If every it happen it will not last that long. Its not a recommended move base on the current economic condition.

I personally i don't see it happening unless Nvidia continue to screw up and don't come up with something for this Holiday Season.

Electronics and high tech product prices goes down with time. Not the otherway around.

The SLOWING $$ is putting pressure on exported goods and services. TSMC is part of it.
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a c 175 U Graphics card
a b À AMD
October 30, 2009 3:09:56 AM

This is actually exactly what I thought the problem was. TSMCs problems with 40nm seem to continue. I hadn't heard anything about it being completely fixed, so I was wondering how "fixed" it was. If Nvidia is also moving to 40nm, I would expect them to have the same problem. (If they move and they don't, then something else is going on like not ordering enough chips, etc)

If AMD does have GF start making their GPUs, how does this change things? Will a SOI 5800/6800 behave differently then a TSMC chip? What process does TSMC use? Will we need to start figuring out who made our chip before we buy it?
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October 30, 2009 3:38:44 AM

L1qu1d said:
I'm not too worried Nvidia is around the corner, so we should see a price war:) 


Nvidia isn't going to undercut anybody.
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a c 175 U Graphics card
a b À AMD
October 30, 2009 3:46:38 AM

Nor might they be around the corner. Assuming around the corner is before christmas...
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October 30, 2009 8:39:53 AM

noooooooooooooooooo


o wait i got mine hehehe
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October 30, 2009 10:10:49 AM

yea its the same guys that say ................. """GT300 Demo card was a Dummy; Does that really matter?"""

immmmmmmmmmm yes helllllllllloooooo
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a b U Graphics card
October 30, 2009 10:47:43 AM

If it were my company, or I were a major stockholder, Id be embarrassed and ticked
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a b U Graphics card
October 30, 2009 11:34:44 AM

Amiga500 said:
Folks... its Theo.


I've ordered a lorry of salt, should be here by tomorrow evening.


And, in the article itself...
Quote:
The new prices are set into action with the next batch of cards…
So, they are effectively saying that the so-called price increase will not happen until the next round of cards hit the market; so, I call FUD until I see retail price increases at my favorite e-tailers.
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