Newegg’s sale of the new AMD Ryzen APUs, including the R3 2200G (that we’re reviewing now) and R5 2400G, posted the APUs above MSRP by roughly $20. The R5 2400G retailed on Newegg for $190, versus a $170 MSRP, and also landed the product significantly above Amazon’s competing pricing. We purchased APUs from both Newegg and Amazon, and paid less for the product from Amazon; of course, AMD (and other manufacturers) can’t control the prices of retailers – that’d actually be illegal – but they can certainly find ways to suggest a price. It is, after all, a manufacturer’s “suggested” retail price.
Today, we received the following note today from Newegg’s service account:
Newegg today revoked its affiliate commission for video cards, which the company's sub-affiliate networks declare to be a change pursuant to "Bitcoin's unexpected popularity." This statement, of course, is comprised primarily of a misunderstanding or misattribution of the market (or bullshit, in other words), although it does consist of some truth. By "Bitcoin," we must first assume that the company really means "cryptocurrency," seeing as Bitcoin is functionally unminable on GPUs. Making this assumption still does not account for the GPU price increase, though; the price increase, as we've discussed on numerous occasions, is mostly resultant of GPU memory prices and GPU memory availability moving in inversely proportional directions. In recent interviews with manufacturers, we learned that 8GB of GDDR5 has increased in manufacturing cost, and has increased BOM, by $20-$30. From what we understand, GDDR5 price movements are typically on a scale of +/- $5, but the $20-$30 hike necessitated some vendors to officially raise GPU MSRP (not just third-party retail price, but actual MSRP).
Retail powerhouse Newegg is allegedly now majority-owned by Hangzhao Liaison Interactive Information Technology Co., Ltd, heretofore known as Over-compensator, Inc. UDN reports that the company with the big name now holds nearly 56% of Newegg through a $2.63B USD investment. This would allow China-based Liaison Interactive to claim hardware/software retail domination of US and Chinese markets. Granted, Google Translate does say that Newegg is the second-largest “US egg supplier in China,” so we can't interpret much beyond the alleged major investment made by Liaison.
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