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Nvidia won, we all lost

(blog.sebin-nyshkim.net)
981 points todsacerdoti | 1 comments | | HN request time: 0.206s | source
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strictnein ◴[] No.44469082[source]
This really makes no sense:

> This in turn sparked rumors about NVIDIA purposefully keeping stock low to make it look like the cards are in high demand to drive prices. And sure enough, on secondary markets, the cards go way above MSRP

Nvidia doesn't earn more money when cards are sold above MSRP, but they get almost all the hate for it. Why would they set themselves up for that?

Scalpers are a retail wide problem. Acting like Nvidia has the insight or ability to prevent them is just silly. People may not believe this, but retailers hate it as well and spend millions of dollars trying to combat it. They would have sold the product either way, but scalping results in the retailer's customers being mad and becoming some other company's customers, which are both major negatives.

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1. solatic ◴[] No.44471646[source]
Scalpers are only a retail-wide problem if (a) factories could produce more, but they calculated demand wrong, or (b) factories can't produce more, they calculated demand wrong, and under-priced MSRP relative to what the market is actually willing to pay, thus letting scalpers capture more of the profits.

Either way, scalping is not a problem that persists for multiple years unless it's intentional corporate strategy. Either factories ramp up production capacity to ensure there is enough supply for launch, or MSRP rises much faster than inflation. Getting demand planning wrong year after year after year smells like incompetence leaving money on the table.

The argument that scalping is better for NVDA is coming from the fact that consumer GPUs no longer make a meaningful difference to the bottom line. Factory capacity is better reserved for even more profitable data center GPUs. The consumer GPU market exists not to increase NVDA profits directly, but as a marketing / "halo" effect that promotes decision makers sticking with NVDA data center chips. That results in a completely different strategy where out-of-stock is a feature, not a bug, and where product reputation is more important than actual product performance, hence the coercion on review media.