Nvidia has hinted at further lowering the price of video cards in the discussion of its quarterly figures. The manufacturer has made too many video cards and has therefore made agreements ‘to adjust the prices of high-end desktop video cards’.
Nvidia CEO Jensen Huang speaks to investors in the discussion of the quarterly figures about the price adjustment. “We have implemented programs with our partners to reposition the product’s price in the sales channel in preparation for the next generation of graphics cards.”
That next generation is probably the RTX 4000 series, which Nvidia wants to release this fall. That could lower demand for RTX 3000 cards, though Nvidia says they’ll stay in the range. In order to still sell the existing stock, Nvidia would therefore like to help retailers. Those prices have already fallen sharply in the past six months.
Nvidia confirms that it has a large stock of unsold video cards. Huang says that Nvidia has produced for a market with high demand. “And so we ended up with overstock. Our strategy is to sell to partners less than they sell to customers so they can correct their inventory. We’re going to do that in the coming quarters.”
Video cards for an apple and an egg