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Old Jan 27, 2003, 01:24 PM   #1
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jaewookim4
Radeon R300
 
Join Date: Oct 2002
Location: CA
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Default GFFX profit margin

Anyone have any guesses how much profit they are making off an ultra when sold at $399? Looks to me that is an expensive card to make, and the return rate from fan complaints may eat into the margin a bit too. I am thinking perhaps nvidia has made the choice to accept lower margins on this product in order to win back mindshare that was lost from the R300. Then, how much room will there be for the internet sellers to undercut the MSRP after it hits street? Do you think it will hit ~$330ish that 9700Pros were hitting 1-2 months after availability?

It looks like if the GFFX is popular, nvidia may suffer some of the margin erosion that ATi did when the 9700 was more well received than they expected. Of course, nvidia has more room to play with the margins, having a larger revenue stream and all, but just something interesting IMO.
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Old Jan 27, 2003, 02:12 PM   #2
iss
Radeon R420
 
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Default

given the cost of the Delelopment of the .13 micron chip and the cost of the DDRII memory and the massive copper heatsink and dustbuster fan I would say nvidia may be close to looking at selling that card at a loss for 399.00
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