LOL.... people are so pathetic. For years they laugh at AMD, for years they want AMD a second at best and now they want Intel, another company with 60% plus margins to enter the market because they want competition. Pathetic.
WTF are you talking about??? AMD couldn't produce the products as cheap to make as Nvidia at same performance level an or better than it at same price range to get a higher profit margin. Every company needs that higher profit margin to stay in the market. It's not nvidia's fault. It's AMD's. It's their inability. Don't show your fanboy face here. If one competitor couldn't compete. It's great to expect another company to pop in to challenge and that will help the prices to be in check. You can go to WCCFTECH to troll and show your devotion to your beloved brand.
Competition doesn't erase margins, unless it triggers a price war.
See Android vs iOS. Apple's iPhones have not dropped in price over the last decade, and in fact their ASP has gone up despite having introduced cheaper and more diverse models.
If they didn't make money you wouldn't get RT cores, etc, because they wouldn't have the resources to devote to them. If they are operating on razor thin margin you'd get an unstable situation where they have to worry about prioritizing their resources. Look at AMD. Their problems have come from the fact that they lost their financial health much more than they have come from engineering/strategic incompetence.
NVIDIA are chasing the opportunities that exist in the growing marketplace. Greater competition from AMD might bring down prices a small amount, but not substantially. Look at GPU prices historically, they really have not gone up. People have been moving up the ladder to higher and higher positioned parts, however. Over the past 25 years the GPU has become a more and more important part of the end experience of a gaming PC.
If AMD also had decent margins then they too could expend resources on innovation and then we'd be getting innovation from two sources, instead of mainly just one with the other playing catch up. Then consumers would win. But if both NVIDIA and AMD operate at AMD's margins consumers would actually lose out.
You do know that this doesn't include opex right? You have to pay the thousands of engineers that design the thing, and all the rest of the staff. Gotta make the drivers and other software. Gotta pay the bills,. Gotta market the thing. etc. you can see the net incoke is closer to 35%. That's a more relevant number.
Crypto demand has no potential contribution to future income? Wow! What happened to it and why does the future look so bleak? (Mind you, I'm not complaining or anything - I'd like consumer graphics adapters to drop to below MSRP rather than what happened to them this past generation.)
Crypto demand was mostly driven by the rising prices that occurred due to a crypto bubble. That's why GPUs we're disappearing - prices were high making profit good.
The massive collapse in price (bubbles pop, and people were pumping it artificially iirc), drove away anybody who would do GPU mining, because the mining costs more than it makes.
The simple answer is that most coins are not efficiently mined with general purpose hardware like GPUs anymore. With some notable exceptions (etherium and it's offspring) the lion's share of coins are mined with purpose built ASICs in massively parallel racks built by investor groups. Digging a bit into revenue reports and guidance from foundry players will show a similar refrain re: crypto, even ASIC mined currencies.
I like how Ngreedia seems to be the ONLY company I am aware of that records their "quarter" well in advance of what the year is, last time I checked this is still 2018 ^.^
Nvidia's FY ends Jan 31 instead of Dec 31 like many companies (but no, they are not the only one). Only one month later, but a whole year incremented on the calendar, yes.
It's really just a trivial curiosity that most just move past once they understand it, but if it's something you really have a hard time processing, maybe you should give up on trying to understand these financial articles and just go straight to the gaming ones.
I think there's something wrong with the tables. Are the "Q1'2018" results supposed to be Q1'2019? Otherwise they suffered a pretty horrific ~40% drop in profit last year going from Q1 to Q2.
At the guy above me, companies can choose to end their fiscal year at different times for a number of different reasons. They aren't alone in changing their fiscal year, or having it end at a slightly different time.
I don't know how Gaming continue to grow, as if there is no ends. But DC still has lots of rooms, and I think the goal is to get Professional Visual and DC together being equal the revenue of gaming.
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DifferentFrom - Thursday, August 16, 2018 - link
"Margins for the quarter were 63.3%" this is why we need competition!patrickjp93 - Thursday, August 16, 2018 - link
Good thing Intel's jumping into the game.yannigr2 - Friday, August 17, 2018 - link
LOL.... people are so pathetic.For years they laugh at AMD, for years they want AMD a second at best and now they want Intel, another company with 60% plus margins to enter the market because they want competition. Pathetic.
Ravenshow - Sunday, August 19, 2018 - link
WTF are you talking about???AMD couldn't produce the products as cheap to make as Nvidia at same performance level an or better than it at same price range to get a higher profit margin. Every company needs that higher profit margin to stay in the market. It's not nvidia's fault. It's AMD's. It's their inability. Don't show your fanboy face here. If one competitor couldn't compete. It's great to expect another company to pop in to challenge and that will help the prices to be in check. You can go to WCCFTECH to troll and show your devotion to your beloved brand.
michael2k - Thursday, August 16, 2018 - link
Competition doesn't erase margins, unless it triggers a price war.See Android vs iOS. Apple's iPhones have not dropped in price over the last decade, and in fact their ASP has gone up despite having introduced cheaper and more diverse models.
tipoo - Friday, August 17, 2018 - link
Smartphones are decidedly stickier products than GPUs. Any new GPU will run your old games, any new alternative smartphone OS will not.Yojimbo - Friday, August 17, 2018 - link
If they didn't make money you wouldn't get RT cores, etc, because they wouldn't have the resources to devote to them. If they are operating on razor thin margin you'd get an unstable situation where they have to worry about prioritizing their resources. Look at AMD. Their problems have come from the fact that they lost their financial health much more than they have come from engineering/strategic incompetence.NVIDIA are chasing the opportunities that exist in the growing marketplace. Greater competition from AMD might bring down prices a small amount, but not substantially. Look at GPU prices historically, they really have not gone up. People have been moving up the ladder to higher and higher positioned parts, however. Over the past 25 years the GPU has become a more and more important part of the end experience of a gaming PC.
If AMD also had decent margins then they too could expend resources on innovation and then we'd be getting innovation from two sources, instead of mainly just one with the other playing catch up. Then consumers would win. But if both NVIDIA and AMD operate at AMD's margins consumers would actually lose out.
sowoah - Friday, August 17, 2018 - link
You do know that this doesn't include opex right? You have to pay the thousands of engineers that design the thing, and all the rest of the staff. Gotta make the drivers and other software. Gotta pay the bills,. Gotta market the thing. etc. you can see the net incoke is closer to 35%. That's a more relevant number.PeachNCream - Friday, August 17, 2018 - link
Crypto demand has no potential contribution to future income? Wow! What happened to it and why does the future look so bleak? (Mind you, I'm not complaining or anything - I'd like consumer graphics adapters to drop to below MSRP rather than what happened to them this past generation.)Drumsticks - Friday, August 17, 2018 - link
Crypto demand was mostly driven by the rising prices that occurred due to a crypto bubble. That's why GPUs we're disappearing - prices were high making profit good.The massive collapse in price (bubbles pop, and people were pumping it artificially iirc), drove away anybody who would do GPU mining, because the mining costs more than it makes.
FullmetalTitan - Friday, August 17, 2018 - link
The simple answer is that most coins are not efficiently mined with general purpose hardware like GPUs anymore. With some notable exceptions (etherium and it's offspring) the lion's share of coins are mined with purpose built ASICs in massively parallel racks built by investor groups. Digging a bit into revenue reports and guidance from foundry players will show a similar refrain re: crypto, even ASIC mined currencies.Dragonstongue - Friday, August 17, 2018 - link
I like how Ngreedia seems to be the ONLY company I am aware of that records their "quarter" well in advance of what the year is, last time I checked this is still 2018 ^.^MadManMark - Friday, August 17, 2018 - link
Nvidia's FY ends Jan 31 instead of Dec 31 like many companies (but no, they are not the only one). Only one month later, but a whole year incremented on the calendar, yes.It's really just a trivial curiosity that most just move past once they understand it, but if it's something you really have a hard time processing, maybe you should give up on trying to understand these financial articles and just go straight to the gaming ones.
Drumsticks - Friday, August 17, 2018 - link
I think there's something wrong with the tables. Are the "Q1'2018" results supposed to be Q1'2019? Otherwise they suffered a pretty horrific ~40% drop in profit last year going from Q1 to Q2.At the guy above me, companies can choose to end their fiscal year at different times for a number of different reasons. They aren't alone in changing their fiscal year, or having it end at a slightly different time.
iwod - Saturday, August 18, 2018 - link
I don't know how Gaming continue to grow, as if there is no ends. But DC still has lots of rooms, and I think the goal is to get Professional Visual and DC together being equal the revenue of gaming.