A partner of the Board of Directors of Nvidia confirmed that finding a GPU of the GeForce RTX 50 series at the PDSF today is quite difficult, because most of the cost goes in the GPU and the VRAM sold by Nvidia, and the remaining 20% in coolers and stuff.
The Chinese seller says it is easier to sell OC models of the NVIDIA GEFORCE RTX 50 series at higher prices due to the drop in margins at PDSF
The state of current generation GPUs is not what it was a few years ago. With the sellers and retailers selling the NVIDIA RTX 50 series and the AMD RX 9070 series at highly higher prices than their announced PDSF, consumers do not get much from what initially seemed good in terms of value.
It’s not that AIBs do not control prices, but they find it easier to sell “OC” models at higher prices than basic models at PDSF. This is what The partner of the Board of Directors of Nvidia in China told 51972A reviewer who tested 31 models of the RTX 5080. In the conversation, the seller told him that most factories do not remove a decent margin from GPUs if they sold them to the PDSF. This is due to a significantly higher cost that goes to the VRAM and the GPU alone.
According to his declaration, the GPU and the VRAM take almost 80% of the BOM cost for the NVIDIA RTX 50 series, leaving little profit from other parts such as coolers and packaging. He hardly takes a few dozen dollars to make radiators, fans and packaging, and can go up to $ 100 in most cases. This is why the RTX 5080 can cost up to $ 900 in production and sell it at $ 1000 may not seem very attractive for sellers.
To be honest, it is very difficult for factories to implement the PDSF these days. The BOM cost of a chip and video memory represents 80% of the cost. The cost of a set of radiators + packaging materials is dozens of dollars and almost a hundred dollars. Consequently, the current market policy is to increase the PDSF a little to respond, and the rest will be sold with OC. We expect the offer to be stable in March, and we do not even have many test samples cards sent by the media now.
– Seller at 51972 (translated machine)
In addition, when sellers ship cards to distributors, they store these cards to earn more profit, which causes prices much higher than the PDSF for consumers. The seller also confirmed that it was easier for them to sell GPUs at a higher price, because the higher GPU in the factory is not more difficult, and it helps them apply a premium price to generate more benefits.
This is why we see premium editions listed for several hundred dollars higher than the basic PDSF, but this has become uncontrollable recently. Not only the RTX 5090, RTX 5080 and RTX 5070 TI are sold at incredibly higher prices, but the RX 9070 XT and RX 9070 have also increased in prices radically. In the very first week, The basic models of the RX 9070 series increased up to $ 130Who tells us that AIBs and distributors can charge what they want.
However, all market needs are now better availability, which helps stabilize prices and the supplier has confirmed that availability will be better in March.
Source of news: @unikoshardware