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Tamron on 05 July 2014
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Intrinsic said:
zarx said:
And yet high end GPU sales are up YoY

That means so litle you will be shocked. For all those talking about YOY sales please try and understand this.

On Wednesday afternoon, NVIDIA Corporation (NASDAQ: NVDA ) reported stellar Q4 results. Revenue grew 9% sequentially and 3% year over year to $1.14 billion, which was well ahead of the company's guidance range of $1.05 billion plus or minus 2%.

NVIDIA's strong results were driven not by its growth initiatives in mobile computing or cloud-based graphics processors, but by its core GPU business.

As a result of strong demand from gamers and market share gains, NVIDIA grew sales of its high-end GeForce GTX GPUs nearly 50% year over year in Q4. This was the primary factor driving 14% revenue growth in the GPU business, which more than offset a year-over-year decline in sales of Tegra mobile processors. Strong sales of high-end GPUs also helped NVIDIA post record annual gross margin of 54.9%.

 

So lets break that down. So sales as a company greaw 3% YOY and it had highend GPUs to thank for that. Remember, "highend" GPUs typically cost anywhere ebtween $500 and $1000 and then some. But lets put it at an average of $750. We are talking highend GPUs as nvidia clearly stated. Not mobile or general average GPUs. They also said it was responsible for 14% growth revenue. Now they made $1.14B of overall revenue in that quater. So lets extrapolate that to a cool $4B for 4 quaters. Now lets say 50% of all that revenue is due to highend GPUs and ignore most of what else nvidia does as a business (impossibly high estimate but this outlandish estimat will help put things in perspective).

At $750 average for a high-end GPU, and looking at $2B in sales... we are looking at yearly sales of 2.67M. Mind you, if you really take everything into consoderation, its impossible that nvidia is selling this many GPUs with an averag price of $750. Its probably around half that at best. So coming and just saying YOY growth or whatever is up really doesn't mean anything besides sounding and looking good on a investor report. Oh and two words "BITCOIN MINING"

To OP:

PC gaming has and will always be a niche. Its just becoming a very very very very very loud niche. But its still a niche regardless. Its just like looking at fans of a certain platform on these forums. If you go by post count or how many they seem to be you would expect that platform to outsell everything else. But that platform ends up seling less than a third of what the leading platform is selling every month. Thats how PC gaming is too.

Your calculations are based on the assumption that the retail price goes entirely to nvidia, it does not, theres retailer markup, manufacturer markup and so on, then theres operating costs, production costs and so on.

Unless of course you think high end gpu's grow on trees for free and are shipped out to retailers where retailers sell them on and don't take a penny for themselves.

Secondly, everyone who is even half serious about bitcoin mining knows AMD cards give you much better performance.

Thirdly, your assumption that the average price for $750 is WAY overinflated, average is closer to 350, cards like the GTX760 are still high end cards and are considerably more commonly sold than the 780's, 780TI's and Titans.

Then consider that Nvidia isnt the only game in town, combine it with AMD's high end card sales and you get your yearly sales figure.

Even at your diabolically skewed-out-of-reality-to-fit-your-argument numbers would put that at over 5 million HIGH END gpus sold a year, when in reality the number for nvidia and amd high end cards combined will be closer to 14m a year.

sheesh