AMD Has Been Cutting Supply of CPUs and GPUs to Keep Prices High
upstart writes:
AMD CEO Says It's Limiting Supply of CPUs and GPUs to Maintain High Prices:
[...] The somewhat startling admission came during the company's quarterly earnings call. AMD is doing quite well despite the industry downturn. It reported 42% year-over-year growth in its data center products. Intel reported a drop of 33% YoY for its data center chips, so the contrast is remarkable. For client PC and gaming, however, AMD is also feeling some pain. It reported a 51% decline YoY in processor shipments. This led to a loss of $152 million compared with a profit of $530 million a year ago, according to Yahoo.
But even though AMD's consumer and gaming revenues are tanking, it's still found a way to keep the numbers up through that old chestnut: supply and demand. According to remarks noted by PCGamer, Dr. Su says it's been limiting supply and will continue to do so. "We have been undershipping the sell-through or consumption for the last two quarters," said AMD's CEO. "We undershipped in Q3, we undershipped in Q4. We will undership, to a lesser extent, in Q1."
It's an interesting admission that explains why CPU and GPU prices haven't crashed along with the PC market. It makes us wonder if Nvidia is doing something similar. Although some decent deals on GPUs appeared a few months ago before AMD and Nvidia launched new architectures, those deals have now vanished.
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