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AMD and Retailers Talk Ryzen 5000 Shortage: 'A Lot More Stock Soon'

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Last week, AMD’s long-awaited Ryzen 5000 series of CPUs finally hit store shelves (and online catalogs), only to almost instantly fly off of them. It’s a story we’ve seen before, and coming so soon after the RTX 3000 launch debacle, AMD should have known that this would happen. But according to Chief Architect of Gaming Solutions Frank Azor, it did. Why, then, are we still facing a shortage of units? Does this qualify as a paper launch, and can we expect to see more stock soon?
 

Azor first started bragging about AMD’s ability to provide plenty of supply for its upcoming releases in September, when a VR developer who was frustrated about the inability to buy an RTX 3090 jokingly bet $10 that each of AMD's upcoming product releases would also face a “paper launch.” Azor joked back with his own “I look forward to taking your $10,” confidently challenging the developer’s prediction.

A few weeks later,  we’re not sure who won the bet. There’s no definitive answer to what exactly constitutes a “paper launch,” but the term generally refers to product releases that ship with such low supply that they don’t exist for customers to actually be able to buy the product so much as for companies to be able to officially say that a product has launched. Right now, you can’t buy a Ryzen 5000 chip unless you shop aftermarket, but Azor argues that doesn’t mean the launch was only on paper.
 

Azor's reasoning for his claim that Ryzen 5000 didn’t have a paper launch is because the company still shipped “tons of units,” with demand simply exceeding even that supposedly large number.

I’m not an economics expert, so I can’t speak to the lost profit opportunity from not accurately predicting that demand would be so high, or whether AMD could have taken Nvidia’s recent gaffe as a learning opportunity. It’s possible that AMD simply couldn’t produce more units than it shipped, or that demand might have met supply regardless of how many Ryzen 5000 chips were available- which is possible, given the prevalence of bots buying recent hot tech releases up to sell back to hungry consumers at a higher price. What we can dig into, though, is whether AMD actually shipped “tons of units.”


Scan UK is a British computer and component seller that, much like Danish electronics retailer ProShop has been doing with Ampere graphics cards, posted today revealing how much unfulfilled Ryzen 5000 stock it’s still waiting to get in its hands. Unfortunately, Scan UK’s data isn’t as detailed as ProShop, but it still gives us an idea of what the situation looks like for retailers.

As of now, Scan UK has 2,698 customer pre-orders for Ryzen 5000 CPUs. That includes 280 orders for the Ryzen 5 5600X, 329 orders for the Ryzen 7 5800X, a whopping 1,538 orders for the Ryzen 9 5900X and 551 orders for the Ryzen 9 5950X. All of these orders are still waiting to be confirmed.

Unlike ProShop, Scan UK also has an extensive FAQ section on its pre-order data page, with the first section trying to explain “what happened during the 5000 series launch.”

“We went live at 2pm for the launch of the 5000 series as planned,” Scan UK writes. “Demand was extremely high and the launch stock we had sold through extremely quickly making it the fastest selling CPU launch we have ever seen. This was echoed across all of the launch retailers.”

This claim seems to hold true, given the chips’ sold-out status across all official retailers, plus celebratory posts from other stores like Mindfactory, which called the Ryzen 5000 series release “The best CPU launch EVER, EVER, EVER.”
 

The rest of Scan UK’s FAQ is mostly dedicated to answering basket error questions and other issues specific to its store, but the company also has an important note snuck into the section that applies to everyone looking for a Ryzen 5000 processor.

“We are assured by AMD that stock coming through for the new CPUs will be significant so the wait time for current pre-orders should not be long.”

This marks a significant departure from how Nvidia is handling the RTX 3000 situation, as that company is telling customers to expect shortages into next year.

Still, 2,698 missing chips for one store does paint a picture not unlike that of Ampere’s availability. Currently, ProShop is reporting that it is waiting to receive 4,718 of its RTX 3070 units- the Ampere GPU that launched most recently. That’s about 2000 more missing units than with Scan UK’s Ryzen 5000 inventory, but ProShop’s numbers also extend beyond outstanding customer orders, which currently sit at 780.

At the end of the day, though we’re still looking at limited sample sizes from different sources and for drastically different products. We’ll have to wait to see whether AMD holds true to its promise that many more Ryzen 5000 chips will come soon, but the company says it's already learning lessons from this launch.
 

“We continue to learn and adapt with every launch,” Azor said in a series of tweets. “We are analyzing what has gone well and what hasn’t from different recent launches and adapting our plans as we learn.”

He also asserted that “We want our products in the hands of their intended users,” denying speculation that manufacturers don’t care who buys their products so long as they get paid.

That brings us back to the question of whether the Ryzen 5000 release was a paper launch. Because we’re only ever going to get thin data on this question, it’s tough to call. But what we do know is that, as with previous recent heavily anticipated product launches, scalper bots ate up most of this release as well, which makes us wonder whether more stock would have solved the issue of sold-out shelves, or simply given scalpers more inventory to snatch up.

It could be that the RTX 3000 and Ryzen 5000 launches were just grim previews of how most future major tech launches will play out, regardless of manufacturer prep, unless companies find strong countermeasures to combat bot orders. And since most major purchases happen online now, retailers have less incentive to aid in developing these systems than before than pandemic, when launches could bring people into stores.

The PS5 and Xbox Series X both launch this week, and AMD’s first Big Navi cards will follow them the week after. It’s likely that bots will hit these products too, and that their manufacturers will also face “paper launch” accusations. But if every new release is a paper launch, then will that term still hold any significance?

We’ll report on whether AMD’s promises of “a lot” more stock coming soon hold up. But unless retailers find a way to stop bots from purchasing products in seconds, it's possible that nothing but time could stop each new successive Ryzen 5000 restock from being a repeat of the launch. Failing that, consumers might have to prep for a dystopia where they're forced to arm themselves with bots of their own.

  • Pytheus
    I've received my Ryzen 5600x from newegg and already built my machine and ran benchmarks. It's performing exactly as advertised. Definitely not a paper launch as people have gotten them.
    Reply
  • SiliconMage
    Guessing that any number of CPU's would have sold out the first day. From here in Canada the biggest difference I saw with this launch was that there wasn't many Online options to choose from. Newegg.ca had a very limited amount online, but the AMD Store (Canada) still doesn't list the 5000 in their store and Amazon.ca never had any in stock yet. MemoryExpress and others were taking backorders only in store which is an attempt to foil Bots I guess.

    Let's see how long before more CPUs drop. I can live with back ordering something directly from a physical visit to a Store if the wait isn't terribly long. A regular supply would be awesome.
    Reply
  • CorbeauNoir
    SiliconMage said:
    Let's see how long before more CPUs drop. I can live with back ordering something directly from a physical visit to a Store if the wait isn't terribly long. A regular supply would be awesome.

    If you can afford to be patient B&H might be the best option. Substantially cheaper than any of the Canadian retailers I've come across and free shipping even cross-border.


    I put myself on backorder lists/notification for any Canadian retailer I could on launch day for a 5900x, only place that would even hazard a guess at a timeline was ME who said maybe in two months... 'A lot more stock' doesn't specify which dies they have loads of stock for.
    Reply
  • PBme
    5600x seemed to have decent stock at Amazon as it was available for a little while during the launch window whereas the 5900x and 5950x were gone instantly.
    Reply
  • VforV
    This is not a paper launch, this is not nvidia Ampere fiasco. America is not the whole world. When Ampere launched a lot of Europe had no stock... it is not the case at all now with Ryzen 5000.

    I just checked again right now (just one store) and in my country there still is availability for 5600x, 5800x and 5950x. Only the 5900x is out of stock. So no, this is not a paper launch. And their prices are very close to MSRP, as close as possible for EU and a launch of a new product.

    If AMD continues to supply in the coming weeks it will further confirm it is not a paper launch. Just because the demand is higher than their production/delivery capacity does not mean it's a paper launch.
    Reply
  • Nightseer
    I don't think this was paper launch. Paper launch means they release it almost without supply. What it doesn't mean is demand exceeding supply. With popular and highly anticipated products, there is no factory in the world that can produce enough to meet demand spike on day one. So shortages within first month are normal. And having to get supply for whole world is not easy. From what I heard, Europe got hit with lower supply than USA. Hence why it might in some places look more like paper launch. Though I guess we will see based on how much supply will come in oner month or two, paper launch is pretty much none, while normal launch means consistent spikes of availability, till early demand is met. Plus do keep in mind that due to pandemic demand is all time high and I dustry can't just flip a switch to adapt. Factories aren't built over night and orders have to be made way in advance, like 6-12 months in advance. And because production lines already are distributed, they can't come in month or two before release and ask for more, capacity is all sold out by that time. Just saying.
    Reply
  • TerryLaze
    Nightseer said:
    I don't think this was paper launch. Paper launch means they release it almost without supply. What it doesn't mean is demand exceeding supply. With popular and highly anticipated products, there is no factory in the world that can produce enough to meet demand spike on day one.
    For a normal launch a company will build up as much stock as they think will sell within the first few days, this procedure would take several months in which they would stockpile units and send them all over the world so that they would be available everywhere in the amount that the company thinks will sell.
    Just like santa, he has to make toys all year around and store them just to have enough of them for the release day.

    Nobody does that anymore and they are just dumping the first, and every subsequent, shipment of units to the market as soon as they get them, nobody can afford, or wants, to keep units in storage for months having to wait to make money from them.
    Reply
  • Victor_S
    I was up at the crack of dawn all ready to get my 5900x from whoever had them in stock. Like an idiot, I did not realize that NewEgg, Amazon and BestBuy did NOT let you search for "5900x" I got no results from 9:00 AM to 9:10 until I realized they blocked site searches. Once I realized what was going on, I browsed to the "components/CPU/desktop/AMD" category in the drop down and saw all 4 of the new 5000 CPUS. Of course, the only one left in stock was the 5600x, so I ordered it for the time being. I'm actually quite impressed with it. When I get my hands on a 5900x, finally, I'll just eBay the 5600x I have now. I am sure I will at lest get the $300+shipping I paid for it. I'm going to set a "buy it now" price of $340 to cover tax and overnight shipping. Someone will be a happy eBayer whenever this happens!

    I also want a 6800XT or 6900XT to go along with my new build, but, rumor has it they will be VERY limited so my hopes of getting one are not high. I refuse to pay scalper prices, even though I COULD afford to, I'm not supporting the "scam market".

    Point is, it was definitely NOT a "paper launch". I didn't even add the 5600x I got to my cart until about 9:18 AM (EASTERN TIME). I'm sure if I was not stupid, and caught the "no search" deal I could have scored a 5900x. I am posting this message on my 5600x build....LOOK HOW FAST IT'S POSTING !!!! lol :P
    Reply
  • Nightseer
    TerryLaze said:
    For a normal launch a company will build up as much stock as they think will sell within the first few days, this procedure would take several months in which they would stockpile units and send them all over the world so that they would be available everywhere in the amount that the company thinks will sell.
    Just like santa, he has to make toys all year around and store them just to have enough of them for the release day.

    Nobody does that anymore and they are just dumping the first, and every subsequent, shipment of units to the market as soon as they get them, nobody can afford, or wants, to keep units in storage for months having to wait to make money from them.

    That is normal, because they can't afford to make too much, since stopping fans or orders can easily result in you losing capacity as TSMC would just sell capacity to someone else. Plus stopping factories costs a ton more than not of shortage. Plus it us demand spike that happens just initially, so after a month, they wouldn't need half as much production capacity. Overbuying isn't free either. It us same reason why multiplayer games don't get excess servers for launch spike. Sinceonyh or two after they would have bunch just sitting around, costing maintenance and doing nothing. Plus they did that before too, the difference was that demand was so much lower and fear of missing out wasn't as huge thing, we used to just wait. Today you have people complaint like those stuff are food and water, necessities being held away.
    Reply
  • TerryLaze
    Nightseer said:
    That is normal, because they can't afford to make too much, since stopping fans or orders can easily result in you losing capacity as TSMC would just sell capacity to someone else. Plus stopping factories costs a ton more than not of shortage. Plus it us demand spike that happens just initially, so after a month, they wouldn't need half as much production capacity. Overbuying isn't free either.
    I'm not talking about buying or producing more or less, I'm talking about building up enough supply with your normal amount of production exactly for that initial spike in demand.
    Reply