This Quarter, Gamers in China has a limited availability of hardware. Reportedly, AMD is cutting down the supply of gaming graphics card in China by 20% to 50%. This will not only affect the new models of Radeon but even the existing ones. You should prepare for limited availability at retail partners and online stores.
Shortages mirror NVIDIA's crisis and may persist through January 2025
Radeon cards are directly affected by the supply cut. There are fewer chips available to AIB partners as compared to the past. This shortage is similar to NVIDIA products that are facing shortage right now. There are component shortages that are affecting their distribution.
We are cutting supply as the memory and GPU costs are high. Radeon cards are getting costlier in terms of quarterly and monthly price increase. The prices are going up because the components are expensive.
It is not demand only that is causing the price increase. It is the production cost.
The graphics cards were sold at 44% MSRP in October. These inflated prices might not come down with the supply cut. There is also a shortage of NVIDIA RTX 5090, 5080. Many of the partners are unable to get the stocks because of the overall shortage.
These shortages are expected to last till January 2025. This shows that there will be limited availability for a while. In the past, we have covered the cancellation of the NVIDIA RTX 5080 24GB variant because of the GDDR7 memory price. The prices of components are affecting the entire market.
This shows a larger trend that how GPU availability is affected. Supply cuts and price increase are because of the prices of components. People in China must prepare for high prices and limited availability. The market will remain tight until the supply chain gets sorted.
Prices already at 44% over MSRP in October, cutting supply now just locks in the gouging. January will be brutal.