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Cut price GTX470 already appearing on sites

As we reported yesterday, nVidia is prepared to pull out all the stops to re-take market share from AMD in the tough graphics market. Information KitGuru heard about the latest round of price cuts was that the GTX470 could be cut by over 21%. Searching the big sites today, we have already found some evidence that this is true.

Smaller sites need to sell-through old stock before they can buy new kit. The mega-stores don't suffer from that problem.

To paraphrase a classic 16th century Ye Olde English saying, they have the supplier's nuts in a vice and can squeeze anything they want, whenever they want.

For example, if nVidia insiders reveal that the GTX470 will benefit froma price cut of more than 21%, then the major sites have 2 choices:-

  1. With fast moving product, they can sit back on the reduction and enjoy massive profits – until the smaller resellers sell out old stock and start to undercut them
  2. On slower moving lines, they can stimulate customers immediately by passing the cut along directly

In the States, Newegg is one of the biggest resellers. We've analysed their GTX470 offers this morning and the GTX470 price drops have already come through.

We're already seeing $50 drop from the price of a GTX470

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Worth bearing in mind that resellers are under no legal obligation to pass over the whole of a cut. They might see $50 as ‘enough bait to make them bite', while at the same time INCREASING margin on the stimulated sales.

Either way, the ongoing push by nVidia to reduce prices in order to gain market share looks set to continue.

KitGuru has been asked by several industry insiders how far we think the price cuts will go.

The answer is simple.

People only need to change price if they are NOT selling out. Production of the Radeon 5000 series still seems to be hampered by issues with TSMC's line. While AMD sells all of the cards it can make, there is no pressure to change price.

To see when nVidia is having an effect on AMD's sales, look for 2 subtle warning signs:-

  1. Solid price drop for one of the existing Radeon 5000 cards (e.g. 5770, 5850 or 5870)
  2. Introduction of one of AMD's next generation cards early (e.g. a ‘6000 series' card in store before the end of September)

Unless you see one or both of these – then you know that there was no effect.

Frankly, KitGuru would like to see some price-stimulation from AMD. It's not natural to push out a range of cards and leave them in the market for more than a year with no sign of price pressure.

Consumers like movement. We demand to be stimulated dammit!

Fingers crossed that with the next one or two price drops from nVidia, we finally see (a) price drops or (b) new product from AMD

KitGuru says: We'd also like to see the high-selling SKUs from nVidia finally hit the market. Especially the promise of a 50w Fermi with the 420 product (as we reported back in May).

Chitter chatter below, but if you want to bellow – head to the KitGuru forums.

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6 comments

  1. So now were looking at a price of 300 to 320 USD, getting pretty close to 5850 territory which seem to be around 290 for reference cards… If people do start to get the 470 i could see ATI dropping their 5850 prices by 20$ at least, i mean cmon it launched at just 250… or ATI just may not care that much and see GF100 as a failure regardless of price and just focus on beating it with 6000 series later this year…

  2. yeah. the prices too for the 460 are very low, which has forced the 5830 down, but its basically starting to encroach on the 5770 zone now. its all a complete pricing mess. good for consumers, but there are too many bloody cards on the market. they need to streamline.

  3. 470 and 465 havent sold well at all, they should just can both, and stick with 460 and 460 OC’d models and 480.

  4. Steve, I think the only thing sustaining the 480 are the 470 and 465. If NVIDIA removes them from the market, they junk most of the wafer and remain with a very low yield chip. If NVIDIA wants to keep the 480 it makes sense to keep the others on the market, no matter what price they sell at. At some price point they’re bound to start selling better than the Radeons.

  5. BTW, I agree that it’s amazing that we’ve yet to see the 5850/70 drop to the suggested prices at release ($260 / $380).

  6. is there any other way that i can post my comment here? i don’t see any one of them.