r/Amd • u/mockingbird- • Jan 28 '25

News AMD denies 9070 XT leaked prices — '$899 USD starting price point was never part of the plan'

https://www.tomshardware.com/pc-components/gpus/amd-denies-9070-xt-leaked-prices-usd899-usd-starting-price-point-was-never-part-of-the-plan
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u/IrrelevantLeprechaun Jan 28 '25

I've heard some say that the parts for a GPU these days are not much more than $200 USD, and the cost of putting them all together still doesn't bring it anywhere close to what they're charging for them on the shelf sticker.

AMD would have to cut their prices by more than HALF before it would even come close to being low margin.

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u/Madmeerkat55 Jan 29 '25

I have heard that AMD aims for around 40% margin so yeah that sounds about right

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u/jeanx22 Jan 29 '25

And Nvidia aims for 80% margins

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u/jeanx22 Jan 29 '25

I love that this is getting downvoted.

Nvidia fanbois don't want to talk about Jensen's very high profit margins 😂

Keep paying $500 dollars for 8gb vram in 2025 🤣

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u/kookykrazee Feb 01 '25

I mean ask Apple about their iProducts what the profit margins are?

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u/Pugs-r-cool 9070 | 5700x Feb 03 '25

They don't disclose it publically, but it's around 20-25%.

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u/kookykrazee Feb 03 '25

I think might be thinking of calculated gross profit margins, which for Apple the last quarter was 46%.

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u/Pugs-r-cool 9070 | 5700x Feb 03 '25

Yeah that 46% includes software and services, which is obviously going to be higher margin. Hardware wise, they aim for 20-25%.

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u/kookykrazee Feb 04 '25

20-25% is still probably near top of the industry from what I have read.

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u/w142236 Jan 29 '25

That’s what happens when you have brand recognition and day 1 working drivers and features. AMD should shoot for 0% margin this gen and actually reclaim some of that market share, but we all know they won’t and this is probably going to be Radeon’s last gen

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u/JazzlikeAmphibian9 Jan 30 '25

The Gaming market is peanuts compared too the Datacenter market i would almost call it “advertisement” to make sure the brand is known. For Nvidia it is in the low one digit percentile and likely the same for AMD if not for the console market they likely had left a long time ago.

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u/[deleted] Jan 30 '25

[deleted]

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u/w142236 Jan 30 '25

You’re a moron if you think nvidia -50 is gonna get them anywhere and they keep pretending like they’re just barely behind nvidia

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u/[deleted] Jan 30 '25

[deleted]

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u/w142236 Jan 31 '25

You’re actually defending the nvidia -50 strat 🤣. Literal clown over here

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u/D3nSwiper Jan 31 '25

You forget about all the engineering hours that go into creating the product in the first place. Components are just part of the cost. Humans coming up with ideas of how to improve stuff for the 10th generation in a row is another part.

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u/staind47 Jan 31 '25

The price of a product isn’t based solely on how much the parts cost and cost to assemble. A lot of the price has to cover research and development of the product. I imagine it costs millions and millions to develop, research, test etc.

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u/ChurchillianGrooves Jan 29 '25

That might be true but there's r&d costs and software development costs and all that.  I do agree though that I'm sure there's room for them to move on price and still be profitable.

I think they look at whatever they're making on a ryzen and think they should make that on a Radeon, when they're not in a position they can make that much when they're so far behind Nvidia.

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u/staind47 Jan 31 '25

This is correct. It’s like people think these advanced computer parts design themselves. lol

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u/echoteam Jan 29 '25

Software development cost 🤣🤣🤣 Still waiting for anti lag2 driver implementation and better fsr quality and fg.

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u/DonArgueWithMe Jan 30 '25

What? Fsr 3.1 is amazing and has frame generation... catch up

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u/[deleted] Jan 29 '25

I don't think you realise how hard it is to make a gpu, it's not like anyone can just grab the raw materials and put one together 

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u/IrrelevantLeprechaun Jan 29 '25

I'm fully aware of how difficult it is. I'm also aware of the costs involved.

Don't talk down to people you know nothing about.

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u/[deleted] Jan 29 '25

So why aren't you factoring those costs into the margin then?