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High-End Graphics Cards
High-End Graphics Cards
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They've said multiple times that Graphics cards wont work on massdrop, as well as most computer parts. There simply isn't enough margin that can be cut, apparently.
Have hope, doctor!
That kind of sucks, but why don't they just block it then? Or post a disclaimer on top of each page?
For components like GPU's and other electronics, the margins are actually very high for the manufacturer. If you look at sites such as electronics360, when they do semiconductor BOM costs, you will see things like even super high end CPU's such as the core i7 4790K only costing about $3 taking into account common yields and labor costs.
The high prices for GPU's and CPU's are based on the company figuring out the highest price that the market will take, in addition to ensuring that they cover the R&D costs as quickly as possible before the product becomes obsolete, thus providing the maximum net profit for the company.
In terms of inching closer to covering R&D and profiting over BOM+ labor. if Nvidia wanted, they could make a GTX 980 in house and sell it for $50, and they would still make a large profit.
Furthermore, if they have already sold enough to cover the R&D, then pretty much any price above BOM+ manufacturing, will be a profit for them.
Depending on the negotiating power of massdrop, they should be able to reach out to nvidia at least for reference cards, and unlock a "low" price of $250 for the GTX 970, especially considering that it is a card that is having trouble selling due to nvidia lying about some of the hardware and software limitations of the GPU.
I'm just saying what they have mentioned in the past. I have no insider knowledge on the margin of these sorts of products.
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