Possible NVIDIA Supply Chain Adjustments Hold Implications for Graphics Card Pricing
Rumor has it that NVIDIA is attempting to change its attitude toward its Add-in Card (AIC) partners, and with that could come higher costs for the end user. Reports circulating indicate that while NVIDIA supplied both the GPU core and Video RAM (VRAM) to manufacturers, the company may now restrict its supply to just the core, leaving AICs to secure VRAM on their own.
Impact on Smaller Manufacturers
This prospective policy change is a major problem for smaller AIC partners. Unlike prominent brands, small manufacturers usually don't have pre-established direct connections with memory suppliers. Reports say small entities attempting to negotiate VRAM contracts are often ignored. For companies lacking these vital supply chain links, it pretty much becomes unviable to keep going in the graphics card business.
Increasing VRAM Prices-Implications for the Market
The sudden responsibility for sourcing VRAM comes at a time when its price is rising. The increasing costs of memory lead to higher manufacturing costs for the GPU, which will thus most probably be passed on to the consumer.
At the moment, the general market feeling is that waiting to buy will mean paying more, given that sourcing problems coupled with rising component prices indicate that GPU prices are set to trend upwards.
