cancel
Showing results for 
Search instead for 
Did you mean: 

General Discussions

rummanctg88
Journeyman III

Why AMD Ryzen price rising at Bangladesh? Is it effects of Coronavirus or shortage of production?

Why AMD Ryzen price rising at Bangladesh? Is it effects of Coronavirus or shortage of production?

0 Likes
3 Replies

Retailers raise the prices, not AMD.

0 Likes

I checked the value of the Daka and there has not been any real change in value to justify changes in price.

I will back black_zion on accusing the retailer

0 Likes
leyvin
Miniboss

Well Simplified Economics 101...

Greater Supply means Lower Prices

Greater Demand means Higher Prices

Typically speaking most Stores will Retail at the MSRP (Manufacturer Suggested Retail Price)., even when there's Low Demand... at least within a given Generation, as this is Stock that can be resupplied and easily acquired elsewhere.

When a New Generation of Hardware/Product is released., the Old Generation becomes "Obsolete" in regards to no longer being Manufactured (or under stand Branding... I'm looking at you RX 500-Series ::shakes head::)

Thus typically speaking Retailers are in a situation where they're competing with Resale (2nd Hand / Private Retail) and thus need to get rid of their remaining Stock before it devalues below what they purchased it for, simply in order to recoup, or stem any losses they might incur from said Product. 

People would've perhaps best noticed this when the RX 580 replaced the RX 480., as those products launched exceptionally close to each other (7-8months) ... and so you saw some "Deep" Discounts on what frankly was still a fairly "New" Product. 

For example I was able to pick up an ASUS RX 480 4GB (RRP £200) for £165 in March 2016, as the RX 580 was launched in April 2016. That's ~21% Mark Up that the Retailer has over the Wholesale Price... and most MSRP is set with the intent of including said Retail Mark-Up that Retailers will use for "Special Offers" and/or "Sale" Periods.

Remember "Sales" are run as a Trade-off between Product Profitability for Greater Sales Figures or Product Profile., but no Business would willingly make a Loss on a Product that they could otherwise sell; that's just bad business practise. 

Now if we actually go forward 2-3 Months from April 2016 to June 2016., well we see the opposite situation occurring, where the RX 580 rose from it's MSRP of £220 (for the 4GB Model) to £260., then a few months later in September 2016 hit a peak of £285. 

This isn't because AMD's Supply Channel was strictly speaking "Too Low"., they actually were shipping more Mid-Range GPUs than ever before... it's was somewhat the point in them omitting the High-End (Big Polaris / Vega) for as long as they did, as effectively they could produce 2.5x Polaris 10 for 1x Vega 10.

Rather what drove this was a Massive Spike in Demand., primarily from Cryptocurrency Miners... as AMD GCN Architecture was simply the best Value-for-Money in terms of Blockchain Compute; as such this essentially resulted in Retail Stores being unable to keep them in Stock, as while these would usually have been purchased as Direct Orders to AIB Partners... now you had many of these channels devoid of Stock, and so a lot of them were Bulk Purchasing from Retailers. 

What's most likely causing a rise in Prices in Bangladesh is probably driven by a few factors. 

Ryzen 3rd Gen has a slightly lower Supply due to Apple Monopolising TSMC 7nm (at least at present)... now good news for the future is that Apple will be using TSMC 5nm for their Next-Gen Architecture., while AMD has exclusive access to the 7nm+ EUV Production Lines; and will also become the Primary Customer for the 7nm Lines. 

So, I'd argue we might actually see the Ryzen 4th Gen and Navi 2nd Gen use 7nm+ EUV... while AMD will likely continue and probably ramp Production of Ryzen 3rd Gen (Rebranded as "Budget 4th Gen") as well as Navi 1st Gen.

Remember Navi 10 and Navi 20 will be using the same Radeon RX 5000-Series Branding (which is sensible)...

I'm also hoping that with this, we have an actual Navi 14 as well as a Navi 12 to properly fill out the Mainstream GPUs. 

I think I have a good idea as to why AMD have approached the RX 5300/5500 with "Navi 14" the way they have., and I have a feeling it the same reason we saw the PlayStation 4 Pro GPU excess stock be repurposed as a Low-End Workstation Card. Given while Performance Wise it would've sat nicely between the RX 560 and RX 570, in terms of the Product Stack it wouldn't have fit. 

Anyhow, the point here is Supply is Lower than Ryzen 1st and 2nd Gen., not by a lot but enough to mean that disruptions in Supply could lead to dwindling stock ... especially as we also are seeing a consistent year-on-year rise in Demand for said Processors, because., well let's be honest the Ryzen 3rd Gen is essentially trading blows with Intel Processors in terms of Gaming Performance; while in all other Areas they're somewhat dominating. 

So, yes... if we throw in the current Health Crisis (such-as the Cornavirus Outbreak), which has triggered a Global Alert from WHO (as it has spread beyond China) and is actually providing to be quite deadly unlike SARS was; as it was just severe but claimed very few lives. 

This is going to have an impact on Travel in the East Asian Region... especially for Fast Transport Options such-as Air or Land, as a measure to help slow (r*****d., weird how that legitimate term is "Offensive") the viral spread. In this respect, well that means Ocean Transport will become the Primary Supply Chain for a while; as these can be easily Quarantined. 

Problem is a Supply Run via Air takes between 2 - 5 Days... By Land takes between 7 - 14 Days... By Sea takes up to 28 Days. Obviously this means, much Slower Supply Chains during said Health Crisis. 

And given basically every Electronics is Produced in Asia (Taiwan, China, Korea) ... which are the key areas currently affected, well this ends up as a fairly big issue for Supply to any other Region.

The irony being that this actually won't affect Intel., as their Fab Plants are all over the World, with the Primary and Secondary located in the US and Israel. It's actually part of why they do have a premium, even after the recent price slashes... they literally cannot produce Silicon for the same $Cost / Wafer that Asia can; because they actually have to pay reasonable rates to their employees. 

Still, I'd argue people actually don't tend to mind paying a Premium when it's clearly justified... what I've objected to with Intel has always been their Monopolisation Tactics (that financially shuts out their Competition from markets) and that Premium Mark-Up has always been 50 - 100%; when in reality their actual cost Premium for Production is approx. 12%. 

And this is what we're starting to see them settle at now. 

0 Likes