14 Replies Latest reply on Jul 21, 2016 8:53 PM by techguy

    purchase directly from amd

    a2457

      Hello everyone.

       

      I'm verry excited about the new Zen based products AMD will deliver in the future,

      and my question is, is it possible to purchase products directly from AMD ?

       

      If it is possible, then how can i,

      if it is not possible, then why is it not ?

       

      For me, personally it would abosulte make sense to cut the middle man out, i would like AMD to profit from selling the products, not some other company.

       

      Thank You.

        • Re: purchase directly from amd
          speeder

          Generally, for any product like this, you never buy directly from the manufacturer, even when they setup some website or that.

           

          The logistics to sell to worldwide individual costumers, specially on the numbers that AMD would need to sell, are too complex, the overhead alone make it unprofitable.

           

          Even by selling heavily discounted to "middlemen", AMD (and any other manufacturer of anything) get more profits than by selling directly to end user.

           

          Then for AMD situation, they don't sell cards, only chips, of course this mean it is possible for AMD to actually package and sell AMD Processors on their own, but for motherboard chipsets and VGA adapters, AMD instead ship the chipsets and GPUs to other companies, that actually manufacture motherboards and GPUs on their own, and still don't sell directly, for the same reasons as above.

           

          Now, what AMD could do, and I keep asking them to do, is see if they can help those manufacturers to setup distribution centers worldwide or even sell directly, for example here in Brazil EVGA has distribution, meaning a store can buy directly from EVGA, instead of buying from an actual middleman.

           

          But AMD cards here you must buy from a middleman, because there are no card (or motherboard) manufacturer that use AMD chips that have distribution here, thus this allow nVidia have lower perceived prices (ASUS for example has the same margins for both nVidia and AMD here, meaning their nVidia cards are much more expensive than EVGA ones, but EVGA nVidia cards are very cheap, and since they don't make AMD cards, there are no counterpart, thus you end with EVGA GTX 970 costing 1300 BRL while the cheapest RX 480 costs 1600 BRL...)

            • Re: purchase directly from amd
              a2457

              In terms of a naked gpu without question you are right.

               

              However, i pointed out i would be interested in Zen based products, to name it, CPUs.

              Where a direct purchase would be more than reasonable.

               

              Surely setting up logistics would involve an investement, on the otherhand it would yield more profit,

              and the upkeep of the logistic network is payd even now, and  a bit of extra as the middleman needs profit too.

               

              I dared to make this question for one reason.

              I own a proseffional logging company, and i had to get new saws. I contancted tha manufacturer directly with the same question,

              and guess what. I was told its pretty possible, and without issues i got my saws delivered. The price difference was quite large, close to 30%.

               

              So... i would really like some official answer to this question, as it would be really interesting to order from AMD directly, even if i had to make a bulk purchase of say.. 10 identical CPUs.

              Group purchase is a wide used term for hobby electronics too, for example Texas Instruments allso sell products directly without issues.

              I hazard, the quantity TI sells is at least a magnitude larger than AMD.

                • Re: purchase directly from amd
                  speeder

                  10 CPUs is probably too low.

                   

                  CPUs are sold in trays like these:

                   

                  phan-biet-hai-loai-cpu-box-va-cpu-tray1.jpg

                   

                  As you can see "10" cpus would be quite a small number, you would need for example on this picture a order of 21 CPUs to get ONE tray.

                   

                  And I don't think that the setup to sell ONE tray would be practical, they probably would only sell a box of trays, so probably almost the full amount you can see on the picture (a rough count by me is that there are more than 1500 CPUs there!)

                   

                  Even then, when you sell directly, you also must give support directly, RMA directly, etc... So it is not just a "warehouse" problem, it is how you send and receive low amount of parts all over the world for support, employees to give that support, dealing with customs of each country, and so on...

                  1 of 1 people found this helpful
                    • Re: purchase directly from amd
                      a2457

                      I .. don't think your concerns are real to be honest.

                      I mean, TI allso has RMa and warranty for chips , that can be bought one by one.

                      Now, many of them are in the pwp package, means 6.6 milimeters by 7.7 milimeters as dimension.

                      and thewholeseller purchase minimum starts from 2000 for those chips.

                      others are even in high number, yet you can still just go the webshop and ask for a single item.

                      without problems.

                       

                      but if you order a single one from TI, then a single one you get delivered.

                      and its a whopping 6 dollar chip. so noting expensive.

                      allso notice, a cpu is just a chip too, but with more value. a lot more value.

                      some of the stuff TI sells costs less than a dollar. for real.

                       

                       

                      so my logic would be, if -and i experienced this quite a few times- other large companies are absolutely willing to sell directly, why would AMD not ?

                       

                      I find Your post informative, as it does have some good points, on the otherhand real life prooved that they are not issues in many cases,

                      we could discuss this for ethernity, but the real answer can only come from an actual AMD employee.

                • Re: purchase directly from amd
                  techguy

                  AMD like most CPU manufacturers typically only sells to distributors and importers. Minimum purchases are typically 5,000 or more pieces at a time in quantities of 5,000 unit multiples. In addition geographical distribution contracts are often in place meaning that if you desire to buy in 5,000 piece quantities you must buy them from the importer or distributor in your country. Circumventing the importer in your country can void any product warranty as the products are viewed as "gray market" goods because they are not purchased through the proper distribution channel. If you're looking to purchase in 5,0000 quantities I'd suggest contacting the AMD importer/distributor in whatever country you live in.

                    • Re: purchase directly from amd
                      a2457

                      "AMD like most CPU manufacturers typically only sells to distributors and importers."

                      Sadly this part is absolutely correct, so i going to have to accept Your answer.

                      Seems i'm mising something here, as this mentality is pretty far from what i consider logical.

                      But, no single person can change a world.

                       

                      Thank You for Your time.

                        • Re: purchase directly from amd
                          techguy

                          Just so that you understand... AMD has limited resources and as such they are unable to establish their own company owned distribution systems in all markets. AMD like most manufacturers relies on importers and distributors in most countries because this is the only cost effective distribution system available. There is substantial cost involved in distribution and that has to be passed on in the distribution chain. If you are looking to buy AMD products in large quantities then I'm sure that a local importer or distributor would be glad to work with you. Retailers are at the end of the distribution channel and they must make a profit or there is no point of selling a particular brand. Obviously some retailers price gouge based on supply and demand. Usually a reputable retailer can be found with online searches.

                            • Re: purchase directly from amd
                              a2457

                              There is a  contradiction i fail to resolve to be honest.

                              Distributing the products surely has costs involved, but it does not cost more for AMD to do it, than it costs to the importer and retailer.

                              The difference is, the profit they make does not land at AMD.

                              So if .. AMD lacks money, why loose profit to outsourcing the distribution, comes the question.

                              Even if we talk nomore than single digit %, its still a huge lump of sum.

                               

                              And i'm not looking to make a large scale bulk purchase for any reason.

                               

                              As i allready wrote earlier, i bought all kinds of goods from tiny cheap stuff to expensive and large stuff, directly from manufacturers without issues, and the costs of the traditional distribution network. It plain simply get shipped via DHL mostly.

                              What i wanted to know if i can purchase my upcomming ZEN cpu directly from AMD, not to get a better price, but to make sure AMD gets the total profit. No official word on it its possible or not, but the answers suggest direct sales structure and AMD needs more time to realise.

                               

                              But anyways an earlyier post told plain simply this is how it goes, this is how it was going on , and this is how it is going to continue to go so not mutch left to change.

                                • Re: purchase directly from amd
                                  techguy

                                  Importers and distributors generally sell more than one brand of products. That allows them to do relatively high volume to cover the costs of operations. It would be a substantially higher cost to AMD to set up a distribution center in most countries compared to using a distributor or importer. In addition the locals handle all of the legal issues that AMD would need to address in each country to establish a company owned distribution center.  As far as U.S. sales are concerned I am not aware of AMD selling direct to anyone other than distributors.

                          • Re: purchase directly from amd
                            supere989

                            So I understand the current distrubution model, but what does AMD do to make sure its customers are getting the deal they are promised by AMD? I was watching the release of the Radeon RX 400 series, and I was promised to be able to buy these products at 199/239 dollars for RX480 4G and RX480 8GB Respectively. However, Retailers are marking the price up so I can't afford it. I was really excited, now I am just disappointed because AMD created a product that is High in Demand, and retailers are scalping the community who wants these products because they have a really great Price to performance Ratio.

                             

                            Message to AMD:

                             

                            Get you Distributors INLINE! This is Absurd! If the price of the devices available are not going to be sold as advertised, then I submit that false advertising is playing a part. I have four Computers that I am waiting to put these cards into, and I can't afford them a $400/ea

                              • Re: purchase directly from amd
                                techguy

                                AMD has absolutely NO control over what price that distributors sell product for. In fact in many countries it is illegal for a manufacturer to dictate what price a product must sell for. When AMD introduces a product in the U.S. and states the pricing will be XX dollars in the U.S. it typically sells for XX Euro in Europe due to cost of importation.

                                 

                                When distributors are price gouging, I take note of who they are and refuse to do business with them now or in the future. I also do not need to have the trick-of-the-week product as soon as it's released. I chose to pay a fair price for whatever I buy. Sometimes that means waiting until more retailers have product to sell which forces the prices to drop back to reality.

                                1 of 1 people found this helpful
                                  • Re: purchase directly from amd
                                    speeder

                                    You are sort of wrong.

                                     

                                    Yes, AMD has no control, but not for the reason you think.

                                     

                                    nVidia has a MUCH superior distribution network, and nVidia cards only get overpriced due to stock problems...

                                     

                                    AMD cards on the other hand, even when there is excessive stock, still are marked-up a lot in several countries, this is because to get AMD cards, the stores must buy from importers, and not distributors, because AMD doesn't have distributors. (and neither AMD board partners have distributors, compare that to nVidia partner EVGA, that have a really good distribution network, and are almost always the cheapest option in third world countries).

                                    1 of 1 people found this helpful
                                      • Re: purchase directly from amd
                                        a2457

                                        i still sortha think AMD should organise its own distribution, and possibly evolve into direct ales with its CPUs, and produce not just gfx chips, but actual cards. i would certainly like to have AMD brand motherboards with AMD brand memory and cpu and gfx card...

                                        but that would be just far too good to be true.

                                          • Re: purchase directly from amd
                                            techguy

                                            AMD is not in the business of competing against it's business partners. AMD supplies engineering and technical info. to the mobo and GPU card makers. In fact most GPU cards are based on the AMD "reference" design. Sapphire typically uses the AMD GPU card reference design 100% other than the fan cooling. The AMD branded memory and other components are developed in conjunction with AMD engineering but AMD isn't in the hardware component business, it's partners are. AMD provides the engineering resources so that these components can be produced and function properly with AMD chipsets, CPUs and GPUs.