AMD May See GPU Profits Drop in 3Q10

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DigiTimes, citing the usual anonymous sources in the graphics industry, says that AMD could potentially see profits drop due to competition from NVIDIA.

Despite achieving an 8% sequential and 87% on-year revenue growth in its graphics business in the second quarter, AMD's profits from the segment in the third quarter may drop as competition from Nvidia heating up, according to sources from graphics card players.
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A MIR on top of the 5830's already reduced pricetag could put AMD back in the game.
 
Well, Duh, they have competiton again. Nv now has a 4xx series part that fills almost all of the price points, and availability is good.
 
now that the 460s are out. amd needs to do a price drop
 
We can all blame the GTX 460. AMd does not have to worry as they can drop prices. and their 6000 series is coming out in quarter 4 of this year.
 
Gee, I bet AMD is just shocked over this news. :p

With the 460, I can finally see AMD doing some price drops, but up until now there really hasn't be a lot of need to do so.
 
Ehren8879 said:
A MIR on top of the 5830's already reduced pricetag could put AMD back in the game.
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No, it won't. People are getting burned out with all the MIR that never get rebated or loose thier warrenty with the the rebate.
Just drop the price.
MIR=FAIL.
 
^^^
Not that AMD/ATI is at fault with MIR its just MIR in general.
Sorry cant edit
 
griff30 said:
No, it won't. People are getting burned out with all the MIR that never get rebated or loose thier warrenty with the the rebate.
Just drop the price.
MIR=FAIL.
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I agree with you on that, MIR's in general are a rip off as they only seem to be honored 50% of the time or less. Manufacturers never expect as many people to send them in as they get back on the MIR's and usually can't fulfill them all.
 
Well, if we see AMD's next gen launch 6 months prior to Nvidia again, this won't really matter.
 
I think that Nvidia will finish out the year ahead in the enthusiast graphics department. All this depends on ATI though. If they drop prices on the 5000 series or the 6000 series dominates and isn't limited in quantities on top of filling the price points. It will do extremely well. But I really don't see the latter happening before the year end.
 
offical announcment of the 6k series is in Q4, its expected that the 6k series will be out early Q1 2011
 
MJZ409.gif
 
Opinions vary and scare Tactics can work...These arent FACTS by any means and i could care less. The more companies or ppl talk smack about how bad product A is vs B i always buy B. Take that whoever you think you are :D
 
GORANKAR said:
Well, Duh, they have competiton again. Nv now has a 4xx series part that fills almost all of the price points, and availability is good.
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460 1G seem hard to find,

zipzoomfly = 0
Amazon.com = pre-order
Directron.com - no 1G cards.

i cant use newegg myself.
 
Ehren8879 said:
A MIR on top of the 5830's already reduced pricetag could put AMD back in the game.
Click to expand...




now.... as i take it, revenue grew, but profits didnt.


slashing prices isn't whats going to fix this.

unless lower prices can drive enough revenue growth to compensate for the margin lost...

correct me if i am wrong.
 
that is true, lower prices could mean more sales that otherwise would not of happened based on the price, but if they are taking a loss on card because of a price cut, i dont think it would help, but a smaller profit per card to sell more cards could help... i think....
 
Well you can count out the selling more units because AMD still can't seem to get enough product in the wild to get pricing down.
 
I think that Nvidia will finish out the year ahead in the enthusiast graphics department.
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I'm not sure what you think is really going on here, AMD has been dominating the GPU market all year -- now that things are more 'even', NVIDIA would need to do the same for the rest of the year to make this conclusion true. They do have a competitive lineup right now, but hardly dominating. And AMD has reaped the major benefits of the 5000 series already, they are now focused on 6000 which is going to give us the same effect next year. Nvidia is now the one playing catchup.
 
I receive an overwhelming majority of my mail in rebates, but then I probably spend more time making it easier for the processing.
For example, I type on the rebate form instead of writing and use double sided tape instead of staples (or just dropping it in the envelope).
I am pretty sure these rebate processor do not have an exciting job so I try to not piss them off by submitting a proper clean rebate submission.
Years ago I would have agreed it is a scam since a lot of the processors will automatically deny the rebate forcing you to call in and inquire about the submission. Most of the time they will validate the submission by stating it as a one time courtesy. Other times they push further by asking for a copy for what they claimed was not submitted.

Yea, I agree with everybody else. It's obvious profit will drop mainly because Nvidia is gaining traction again. The GTX 460 is the sweet spot for a graphic card and from basically all reviews it does it by a wide margin. Just take a look at Hardcop's GTX 460 review "The Bottom Line" section.

AMD/ATI will be doing a refresh in Q4 2010 so my guess is they will reclaim dominance in the higher end GPU segments if they follow the standard procedure of releasing the powerful versions first.
 
I think that saying competition from NVIDIA is "heating up" was a poor choice of words.
 
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