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Kristof81 on 08 December 2019
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Conina said:
Kristof81 said:

Third, there’s a big difference between retail price of a single unit and bulk price of min 30+ million units.

Neither PC GPUs nor PC graphic cards are individually custom built. They are also mass produced and the manufacturers also profit from economies of scale.

How many PS4 Slim APUs are produced every year? 15 - 17 million?

How many PS4 Pro APUs are produced every year? 2 - 4 million?

How many XBO S APUs are produced every year? 5 - 8 million?

How many XBO X APUs are produced every year? 1 - 2 million?

Well, in the last years, Nvidia also sold tens of millions of GP106-GPUs (GTX 1060) and probably more than 10 million GP106-GPUs (GTX 1070, 1070 Ti and 1080).

The TU106 sales (RTX 2060 - 2070) and TU116 sales (GTX 1650 Super - 1660 Ti) will probably both reach 10 million next year, TU104 sales (RTX 2070 Super - 2080 Super) will probably reach 10 million next year.

And of course the graphic cards manufacturers like ASUS, MSI and Gigabyte also buy these chips in bulk and will get bulk prices.

Of course Sony, Microsoft and Nintendo will get even better prices, but it ain't so that the graphic card manufactures only buy a few hundred or thousand of each GPU model.

It's not about how many particular GPUs they produced/sold last year. In the PC market you have new GPUs/architectures coming out almost every year and trends change constantly. The same Navi chip is here to stay for at least 5 years, without any major changes in demand. This unchanged design helps a lot in bringing the single unit price down as you can forecast and plan production for years to come with ease. Each new chip introduces (or may introduce, depends how much it differs) new manufacturing process and that costs a lot of money. In other words, uncertainty creates cost. Also, no single 3rd party PC parts manufacturer have such purchasing power as Sony. They can easily sign 5 year contract for delivery of 50+ million Navi chips, with a very high degree of certainty. I honestly doubt that Asus, MSI and Gigabyte combined, could do the same thing for their 20 series GPU, or any single SKU in that matter.

Last edited by Kristof81 - on 08 December 2019