Because it’s the opposite of how supply and demand work? Supply hasn’t changed but demand is going to taper down in the long run because a large market was just taken offline. Same supply with less demand means lower prices.
I think people are thinking longer term. If companies know they can’t sell to the Chinese market, naturally they’re reduce supply to match, but you still have most of the same fixed costs.
It only lowers prices for a brief period, and then it jumps significantly.
short term = oversupply = same product for lower price
long term = company reacts to reduced market by decreasing production & support. Price jumps. Product quality declines, and possibly discontinued if bad enough.
Sanctions dont make the market more robust or healthier. They artificially carve it into pieces, which in the longterm creates poorer products, creates monopolies, and eventually ends up enforcing those monopolies by strangling off any would-be competition.
In this example:
Losers: amd, companies dependent on amd, all consumers
Winners: bureaucracy, government/regulators, dell, “competition” of amd i.e. nvidia&intel, financial institutions, black markets
Actually in general, it will lead to lower prices. But yes, in a narrow set of circumstances it could lead to higher prices, although I find it highly unlikely to be the case here.
Really depends on demand regionally. The 7900 xtx isn’t really flying off the shelves in the west. It’s kind of expensive and I’d say the GPU market in general feels a bit tapped out on the consumer side.
long term wise the more gpus people buy the better it is for consumers since the prices would be lower as most of their expenses are fixed and not dependant on the number of gpus manufactured (that extends all the way down the supply chain to Taiwan and the Netherlands too)
So yeah, it might (and probably won’t) affect the prices right away, or even the prices for 7900 specifically, but it will be accounted for when they decide on the prices for the next generation
Great more price rises 💀
Why is this downvoted?
Do people think Nvidia and AMD loosing their biggest market is not going to affect prices?
Because it’s the opposite of how supply and demand work? Supply hasn’t changed but demand is going to taper down in the long run because a large market was just taken offline. Same supply with less demand means lower prices.
I think people are thinking longer term. If companies know they can’t sell to the Chinese market, naturally they’re reduce supply to match, but you still have most of the same fixed costs.
It only lowers prices for a brief period, and then it jumps significantly.
Sanctions dont make the market more robust or healthier. They artificially carve it into pieces, which in the longterm creates poorer products, creates monopolies, and eventually ends up enforcing those monopolies by strangling off any would-be competition.
In this example:
Actually in general, it will lead to lower prices. But yes, in a narrow set of circumstances it could lead to higher prices, although I find it highly unlikely to be the case here.
Really depends on demand regionally. The 7900 xtx isn’t really flying off the shelves in the west. It’s kind of expensive and I’d say the GPU market in general feels a bit tapped out on the consumer side.
long term wise the more gpus people buy the better it is for consumers since the prices would be lower as most of their expenses are fixed and not dependant on the number of gpus manufactured (that extends all the way down the supply chain to Taiwan and the Netherlands too)
So yeah, it might (and probably won’t) affect the prices right away, or even the prices for 7900 specifically, but it will be accounted for when they decide on the prices for the next generation
tl;dr rip the third world
I don’t think “most” is accurate, but the point remains.