EVGA terminates relationship with NVIDIA; cites disrespectful treatment

[troyan]

Revenue of TUL coperation: https://finance.yahoo.com/quote/615...j1h1i3M3_ih1xPMS7SSqTIBllPbXKO2GjUuaNCggWDINB

Gross marge in 2021 was ~27% vs. ~8% in 2020...

/edit:
The quarter result of 6/26 is interessting: Y-Y revenue decreased by half and gross marge was only 1,5% instead of 35%.

 

[DavidGraham]

Towards the latter half of August, multiple EVGA employees involved in technical marketing and engineering had let us know privately that they were leaving the company for other ventures. When pushed further, several hinted towards some decisions being made by EVGA's management, including CEO Andrew Han, that would jeopardize their future. Some even went far enough to say they would share more in a few weeks time about how they felt exactly about their time there, the various issues that kept them from doing their best, and also that at least a couple of ex-employees were let go. TechPowerUp was doing due diligence in collecting the facts while keeping emotions aside from contacts who were understandably not in the best of moods, and one thing common across the board was there was something major coming up dealing with the EVGA GPU product line.

Jensen Huang responded to a question about his thoughts on EVGA in a Q&A session today:

Jensen HuangYou know, Andrew (EVGA CEO) wanted to wind down the business, and he's wanted to do that for a couple of years. Andrew and EVGA were, are great partners and we're great partners, and I'm sad to see them leave the market. But, he's got other plans and he's been thinking about it for several years, so I guess that's about it. The market has a lot of great players and it will be served well after EVGA, but I'll always miss them, they were an important part of our history, Andrew is a great friend. I think that it was just time for him to go do something else."

EVGA Announces Cancelation of NVIDIA Next-gen Graphics Cards Plans, Officially Terminates NVIDIA Partnership

Towards the latter half of August, multiple EVGA employees involved in technical marketing and engineering had let us know privately that they were leaving the company for other ventures. When pushed further, several hinted towards some decisions being made by EVGA's management, including CEO...

www.techpowerup.com

 

[Silent_Buddha]

Revenue of TUL coperation: https://finance.yahoo.com/quote/615...j1h1i3M3_ih1xPMS7SSqTIBllPbXKO2GjUuaNCggWDINB

Gross marge in 2021 was ~27% vs. ~8% in 2020...

/edit:
The quarter result of 6/26 is interessting: Y-Y revenue decreased by half and gross marge was only 1,5% instead of 35%.

That is interesting. So that matches with the JPR report graph which has data points for 2000, 2005, 2010, 2015, 2020 (looks to be about 9% for 2020) then an estimate for 2022 of around 5% based on industry trends up to 2020.

2021 was an outlier due to multiple factors, not least of which was the combination of Covid government subsidies combined with the crypto bubble. But then it might be crashing harder in 2022 than what JPR forecast in that graph due to the crypto crash combined with global inflation.

Regards,
SB

 

[troyan]

A few more informations about the relationship between nVidia and the AIBs in the last two years:

"The AIBs don't have to hardly place lead time on us," Huang explained, noting that Nvidia was shouldering much of the burden on procuring components and absorbing costs. "And so you know, we ordered we ordered the components no matter what, so our AIBs are are agile. And and we carried the vast majority the inventory when the market was really hot. Our selling price was all exactly the same, never moved $1. Our component costs kept going up, but we absorbed all of the increases. And we passed $0 on to the market."

More: https://www.windowscentral.com/hard...ls-the-tea-on-evga-rift-china-export-controls

 

[digitalwanderer]

A few more informations about the relationship between nVidia and the AIBs in the last two years:


More: https://www.windowscentral.com/hard...ls-the-tea-on-evga-rift-china-export-controls

Ok so JHH is saying that nVidia has been sucking up losses on cards the last few years due to component cost increases and hasn't been passing the price increase along to anyone. That explains nVidia's massive loss the last few years and why GPUs have been so cheap.

 

[Malo]

Ok so JHH is saying that nVidia has been sucking up losses on cards the last few years due to component cost increases and hasn't been passing the price increase along to anyone. That explains nVidia's massive loss the last few years and why GPUs have been so cheap.

I'm not sure he's necessarily saying they've been taking losses (lol), just that Nvidia didn't increase the costs of the cores and components, whereas the AIBs did.

Of course Nvidia came out with the crypto cards 3080 12Gb, 3080ti and 3090ti, which they definitely reaped massive profits on, and are now using those ridiculous prices as justification for Ada price comparisons.

 

[digitalwanderer]

I just found his fluffy talk a bit too over the top, had to resort to sarcasm. Sorry.

 

[trinibwoy]

This here is the only thing that matters. The price we get is the price they think will clear the market. The only way prices come down is if people stop paying.

"When when the demand slowed, we we took the action to create marketing programs, but basically discount programs or rebate programs, that allowed the pricing in the market to come back to to to a price point that that we felt would ultimately sell through," Huang explained.

 

[ninelven]

Of course Nvidia came out with the crypto cards 3080 12Gb, 3080ti and 3090ti, which they definitely reaped massive profits on

Aye... I guess those profits just materialized out of thin air while Nvidia was doing everyone a solid.

 

[Malo]

Aye... I guess those profits just materialized out of thin air while Nvidia was doing everyone a solid.

They probably consider anything less than 60% margins to be a "loss"

 

[Wesker]

Follow up investigative piece:

Addresses some of crazed conspiracy theories put forward by some Nvidia fans.

 

[Sxotty]

With all this drama where are the fire sales on the 3x series cards . I wouldn't mind getting one of they were actually cheap. Nvidia is trying to help the AIB partners by not selling low end 4 series IMO that way their excess 3x stock can still be sold at reasonable prices.

 

[digitalwanderer]

It won't happen until the 4xxx series releases as well as Intel and AMD putting out new cards, then I expect we'll be seeing some deals and I'm sort of waiting until then. Only a few more weeks maybe a month tops, it should be good.

 

[Malo]

Well 3090's for $999 is a pretty good deal, especially for those of us that really want a lot of VRAM without moving to professional.

 

[DegustatoR]

Well 3090's for $999 is a pretty good deal, especially for those of us that really want a lot of VRAM without moving to professional.

It's a good deal only for those who want a lot of VRAM. A 4080/12 at $900 would be a lot better for gaming most likely, especially if you don't plan to play in 4K any time soon.

 

[Clukos]

It's a good deal only for those who want a lot of VRAM. A 4080/12 at $900 would be a lot better for gaming most likely, especially if you don't plan to play in 4K any time soon.

Probably consume a lot less power as well. 4080 12gig is still stupendously overpriced but it should be a better deal than the 3090 for sure.

 

[digitalwanderer]

Damn it, EVGA made nice GPUs!

 

[eastmen]

Would love to see them make some amd or even intel gpus

 

[Deleted member 2197]

 

[Kaotik]

Nvidia knows exactly how much it can be but the final pricing will depend on their decisions on competitive landscape and projected supply/demand figures. It is true that final pricing is usually the last thing which is being set for any SKU but that doesn't mean that this pricing can be whatever, there is a range - and this range is usually communicated to AIBs so that they could decide on how to build their own lineups.

Remember why EVGA quit NVIDIA?