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Old March 20, 2012, 07:50 PM
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Galcobar Galcobar is offline
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Location: Richmond, B.C.
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Originally Posted by Soultribunal View Post
They got greedy and priced too high. Instead of being aggressive and taking more market share. Lets see how much that hurts them.

AMD went with the low-price strategy when they introduced the 5000-series, but with limited availability it didn't really help it gain any permanent market share. That's the thing about the discrete graphics card market, the majority of purchasers are brand-agnostic. From a company's perspective, you might as well soak up as much profit as you can because giving the customer a good deal today does not ensure a return buyer tomorrow.

Overall profits probably look the same, but there's much less risk when releasing a low-volume, high-price part than there is with a low-price, high volume part. The risk is ameliorated in two areas: 1) if your production has issues, you don't end up with a low-price + low-volume situation, and 2) you can always drop prices to increase volume without triggering a major customer backlash (early adopters know they're taking a risk, plus while prospective customers can still change their minds).

AMD's prices aren't out of line if you compare them to the price/performance of the competing Nvidia cards (the 7750 being a glaring exception). They're just out of line with AMD's prior low-price strategy.
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