GPUs prices are finally going down: Analyst Dr. Jon Peddie offered some facts on how the top graphics cards have been more expensive over the years in a new study posted on Graphic Speak. The article also examines the present high prices for AMD and Nvidia’s latest graphics cards, with the forecast that prices will fall when stores have surplus inventory.
Since the Ethereum mining boom, the average selling price for discrete graphics cards has risen rapidly. As a result, miners began stockpiling GPUs, causing a shortage and higher costs. The situation deteriorated further when the pandemic struck, causing the supply chain to fail and depleting graphics card stockpiles. Scalpers took advantage of the situation, using bots to buy up every graphics card with the intent of reselling them on eBay later.
According to Peddie’s report, increased demand and mining contributed to high pricing. The greatest increase in the AIB average selling price occurred between 2019 and 2020. Remember that the first coronavirus cases were discovered in China in December 2019, and everything went downhill from there. In instance, the AIB average selling price in 2019 was slightly more than $400, but it nearly reached $700 in 2020, representing a 75 percent price rise. Pricing continued to rise between 2020 and 2021, but the margin was much lower.
AIBs in the PC gaming and mining industries have priced their goods two to three times higher than mobile graphics cards. Peddie, on the other hand, argues that the supply scarcity isn’t to blame for the increase in PC AIB pricing; rather, the miners and scalpers are to fault.
Graphics card suppliers, according to Peddie, are not benefiting from the price increase. Instead, it is the retailers (Amazon, Newegg, Best Buy, etc.) and scalpers who are profiting handsomely. Meanwhile, retailers like as Best Buy got more inventive, putting Nvidia’s Ampere graphics cards behind a $200 fence. Unfortunately, the approach backfired and aided scalpers rather than gamers in obtaining graphics cards.
Overall, Nvidia’s graphics cards have seen bigger price increases than AMD’s products. For example, the GeForce RTX 3090 Ti and GeForce RTX 3080 sell for 91% and 75% of their MSRPs, respectively. The GeForce RTX 3050, which many regard to be the entry-level Ampere offering, costs 40% more than the MSRP.
The biggest markup in AMD’s case is 30%, which corresponds to the chipmaker’s flagship Radeon RX 6900 XT. The Radeon RX 6600, which is somewhat quicker than the GeForce RTX 3050, however, only saw a 15% price increase.
If you don’t need a graphics card right away, our best advice is to wait to GPUs prices come down. While graphics cards are not yet at MSRP, they are on their way. Our eBay GPU pricing monitoring indicated that prices are still falling. In the first half of March, we saw a 9% decrease. We agree with Peddie that inflated prices would certainly fall when retailers and scalpers have excess inventory that they can’t move. The problem is that what Peddie says will not happen quickly, therefore we must be extremely patient in order to escape temptation.