It’s illegal to outright fix prices of products. Manufacturers have varying levels of sway when establishing cost to distributor partners and suggested retail prices, acted on much lower in the chain, and have to produce supply based on expectations of demand. We’ve previously talked about how MDF or other exchanges can be used to inspire retailers to work within some guidelines, but there are limits to the financial and legal extension of those means.
This context in mind, it makes sense that the undertone of discussion pertaining to video card prices – not just AMD’s, but nVidia’s – plants much of the blame squarely on retailers. There’s only so much that AMD and nVidia can do to drive prices at least somewhat close to MSRP. One of those actions is to put out more supply to sate demand but, as we saw during the last mining boom & bust (with emergent ASIC miners), there’s reason for manufacturers to remain hesitant of a major supply commitment. If AMD or nVidia were to place a large order with their fabs, there’d better be some level of confidence that the product will sell. Factory-to-shelf turn-around is a period of months, weeks of which can be shipping (unless opting for prohibitively expensive air freight). A period of months is a wide window. We’ve seen mining markets “crash” and recover in a period of days, or hours, with oft unpredictable frequency and intensity. That’d explain why AMD might be hesitant to issue large orders of older product, like the RX 500 series, to try and meet demand.
We moderate comments on a ~24~48 hour cycle. There will be some delay after submitting a comment.