Speaking of graphics card brands, many users are familiar with EVGA. It is one of the largest board companies in the United States and the core partner of NVIDIA. It is the largest AIC in North America. The product is said to be positioned at high-end, but in terms of personal use experience, it still recognizes the American Colorful statement. Of course, its high-end card is still very good.
However, today it was reported that the cooperation between EVGA and NVIDIA has been terminated. In the relevant statement, EVGA stated that it would stop all graphics card manufacturing business. At present, there is no idea to cooperate with AMD and Intel. Existing customers will be able to continue to enjoy warranty services. Of course, EVGA does not do graphics card business does not mean that EVGA will close, EVGA will not close the company, and will continue to operate.
NVIDIA received a notice in April this year regarding the decision to stop cooperation. In addition, it was mentioned in the statement that EVGA has completed the engineering sample of the RTX 40 series graphics cards, but these cards will definitely not be sold out. The inventory of the RTX 30 series is estimated to not be sold out until the end of the year. As for the grudge between EVGA and NVIDIA, EVGA believes that the responsibility lies with NVIDIA.
Many people were surprised by EVGA's decision, because EVGA and NVIDIA have been working together for more than 20 years, and the bosses of both parties are still classmates. Currently, 80% of EVGA's revenue comes from graphics card business. EVGA's move will undoubtedly have a great impact on its own future.
would rather give up 80% of its income. This is obviously not just a matter of money. According to relevant statements, it is mainly because NVIDIA's attitude has caused both parties to turn against each other. EVGA believes that the relationship between the two is no longer a partner, but an ordinary buying and selling relationship. In fact, simply put, it is that Lao Huang has squeezed too hard on the downstream, which makes EVGA feel that there is no need to continue doing it.
As for why this happens, the key is that NVIDIA is the dominant position in the GPU field. Downstream manufacturers do not have the ability to bargain. Even if EVGA accounts for 40% of the North American market, NVIDIA is not worried about not having a spare tire to fill it up. Therefore, if you want to change this situation, you still have to break the situation where NVIDIA is the dominant position. It depends on whether AMD and Intel can give some strength.
As an American company, EVGA naturally has the characteristics of an American company, that is, since the profit is meager and even loses money, it will be cut off directly. In this way, EVGA seems to have only power, motherboard and heat dissipation businesses. However, the profit margins of these businesses are much higher than those of graphics card . I hope to support EVGA to find new business points or carry forward these businesses.
Of course, EVGA itself has actually problems with its operation. In this mining wave, EVGA did not adjust the price of the graphics card, but was still selling it at the previous price, which undoubtedly affected its profits. Therefore, EVGA has also taught other manufacturers a lesson.
The lesson is that when you encounter a mining tide, you must make a lot of money. You can make as much money as you can. The mine boss will give you as much as you want. Giving it to ordinary consumers at a low price is just a mortal. Although you have gained a good impression and reputation from ordinary consumers, what is it compared to your own life or death?
Generally speaking, in the current situation of MVIDIA, the upstream has been harshly exploiting the downstream, and the downstream has no good way to counter it. EVGA is naturally no exception. Moreover, EVGA's wrong choice during the mining tide this time also led to a significant reduction in the profits it obtained. After the mining tide recedes, it is naturally the one who suffers. It still needs to do things in the market law. As a company, how to choose between making money and making reputation, the former is undoubtedly the most important.