Monday, March 20, 2023

Graphics card bang: EVGA vs. Nvidia – official statement, horrifying margin growth

After media reports yesterday claimed that EVGA would be separating from Nvidia after a long-standing exclusive partnership, the companies have now issued official statements. At least one reason for the separation should probably be margin growth, which is said to be disastrous for Nvidia’s partner.

statement and margin

The separation has now been confirmed by EVGA in the manufacturer’s official forum. A community manager writes there that there will be no next-generation graphics cards from EVGA. The current generation, ie Nvidia’s RTX 3000 graphics cards, should obviously be offered and continue to be supported by EVGA as well.

There’s no question of a possible switch to AMD or Intel. Such a statement is not explicitly denied, but the lack of new-generation graphics cards does not specifically refer to Nvidia models. It’s possible that EVGA may actually be withdrawing from the company’s core market.

According to PC Gamer, Nvidia has also spoken out now. Accordingly, a spokesperson for the company remained fairly vague, thanks to the partnership and emphasized that Nvidia would continue to work with EVGA for the current generation of graphics cards.

“We have built a great partnership with EVGA over the years and we will continue to support them with our current generation of products. Best wishes to Andrew [Han] And good luck to our friends at EVGA.”

Finally on the topic: Geforce RTX 4000: EVGA differs from Nvidia

So there is no new official information on the background of the separation of long-term partners. Previously, however, it was reported that it was becoming increasingly difficult for EVGA to work with Nvidia. Important details on available quantities and upcoming price changes apparently didn’t reach the partners at all or just too late.

Another reason for the decision could be the development of margins. Potential profit margins for Nvidia’s partners have been falling steadily since 2000, from about 25 percent in the beginning to about 5 percent now, according to a graph from John Peddie Research. Nvidia, on the other hand, had grown from just 35 percent to about 65 percent over the same period.

While Nvidia’s partners have had fewer and fewer financial discounts in recent years, the exact opposite is the case with Nvidia. This development must have been particularly sad for a company like EVGA, which, among other things, has been out of competition with an expensive support service.

Source: PC Gamers

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Nation World News Desk
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