A well-known analyst is sure: GPU prices will fall

According to analyst Jon Peddie and his latest study published in Graphic Speak, there is hope for those looking to get a powerful graphics card at a reasonable price. The analyst is certain that GPU prices will fall in the future and explains the reasons why they have risen so much in the first place.

Who are to blame for the overpricing?

It is said that the average retail prices of graphics cards began to increase exponentially with the start of the Ethereum mining boom. At the time, miners were stocking up on GPUs, leading to a shortage of graphics cards and correspondingly high prices. The effect was further amplified by the onset of the global corona pandemic, as a result of which supply chains collapsed and stocks of graphics cards ran out. To make matters worse, it is said that resellers exploited this situation with the help of bots and took all available graphics cards to resell them through Ebay.

A chart by Jon Peddie showing average GPU prices over the past few years reveals that the big price increase started in 2019. At the end of the same year, the first cases of corona were also reported in China. Since then, affordable GPU prices have been far from reality. According to Jon Peddie’s chart, the average retail price for GPUs was just over US$400 in 2019, but reached nearly US$700 a year later, corresponding to an increase of around 75 percent. Even after that, there was no relief in sight, but rather an increase in prices.

Also worth reading: Buy graphics card: Radeon RX 6800 XT and RX 6900 XT prices drop significantly

However, Jon Peddie does not believe that supply bottlenecks are responsible for high card prices, but rather miners and resellers. The analyst explains that graphics card vendors are not benefiting from high prices. Rather, the profits should be reaped by retailers (Amazon, Bestbuy, Newegg, etc.) and resellers. For example, a while back, Bestbuy bundled Nvidia’s Ampere GPUs behind a $200 paywall, which benefited resellers more than anyone else, especially gamers.

Nvidia more expensive than AMD: recovery in sight

The general trend shows that Nvidia graphics cards have seen and continue to see a higher price increase than AMD’s reference products. The Geforce RTX 3090 Ti and 3080 are currently selling for 91 percent and 75 percent above their MSRP, respectively, according to Jon Peddie, while the Geforce RTX 3050 is still 40 percent above. AMD’s flagship Radeon RX 6900 XT is currently only 30 percent above its RRP and the Radeon RX 6600, which is said to be slightly faster than the Geforce RTX 3050, is “only” a 15 percent more expensive.

chart chart RRP Prices in March 2022 price increase Maximum price
Geforce RTX 3090 Ti $1,999 $3,820 91 percent $3,820
GeForce RTX 3090 $1,499 $2,129 42 percent $3,300
GeForce RTX 3080 $699 $1,220 75 percent $1,800
GeForce RTX 3050 $249 $349 40 percent $379
Radeon RX 6900 XT $999 $1,299 30 per cent $1,954
RadeonRX6600 $329 $379 15 percent $549
Radeon RX6500XT $199 $220 11 percent $270

At the moment, however, it can be seen that GPU prices are gradually falling. Jon Peddie believes that inflationary prices will calm down as retailers and resellers hold on to their excess inventory and don’t get rid of it. However, this takes time, so a lot of patience is required in this case.

Source: Graphic Speak via Tom’s Hardware

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