EVGA terminates relationship with NVIDIA; cites disrespectful treatment

[techuse]

It’s hard to believe anything other than money was the root cause of their decision. The people making these decisions care little about anything else.

 

[Boss]

Speculation on NVIDIA being dicks seems entirely reasonable, and yet at the same time seems like insufficient singular reason to close down a multi-billion dollar business. Which then gets us back to the point Broopster made earler:


I feel like this pretty much sums it up, as best as anyone here is going to be able to find.

It's more than reasonable. There's sufficient evidence showing that companies will drop Nvidia the moment there's a viable alternative. Nvidia only gets away with their behavior because they're the best in the space. The moment competition shows up, Nvidia is done. I really hope the rumored anti-trust proceedings against nvidia go ahead. Their pompousness needs to be checked big time.

 

[entity279]

There's sufficient evidence showing that companies will drop Nvidia the moment there's a viable alternative. Nvidia only gets away with their behavior because they're the best in the space. The moment competition shows up, Nvidia is done.

But this is a tautology, no evidence is needed, this is how markets works.
Supliers are chosen based on some cost - quality equation, nothing else, and this is how it should be.

 

[DegustatoR]

Companies would drop anyone if there would be a viable alternative providing them with a similar product at a lower price point. Most people would do the same.

 

[Boss]

But this is a tautology, no evidence is needed, this is how markets works.
Supliers are chosen based on some cost - quality equation, nothing else, and this is how it should be.

That is indeed not how the market works at all. If it were, intel's cpu share in data center and desktop market share would be sub 30%. In my working experience, relationships developed with supplier over a long period of time often take precedence.

 

[entity279]

Most of what you say is covered by the cost quality equation ( currency is not the only cost to be accounted ) . And there is innertia too to the market, obviously. And indeed imperfections

 

[Boss]

Most of what you say is covered by the cost quality equation ( currency is not the only cost to be accounted ) . And there is innertia too to the market, obviously. And indeed imperfections

Cost quality equation is in reference to the product. It's not in reference to interpersonal relationships and what nots. In a lot of places, who you know and how long you've known them is far more important that the cost/quality of the product even when it's suboptimal to do so. It's sort of like giving your buddy a contract not because he has the best price nor the best service but, because he's your buddy and your kids go to school together. This kinda stuff happens a lot.

 

[Broopster]

Relationships play a role in business big and small. They’re all run by human beings. Of course they are just one factor - pricing is very important too. Also, I have learned that the importance of relationships in business can vary culturally.

To be clear, I’m not trying to imply anything apropos this topic, just sharing my own experience in small and medium sized businesses in the US and what I’ve learned from friends in international business.