Many times companies limit the production of a product, creating a smaller supply compared to the demand, which can generate a perception of exclusivity and scarcity among consumers. This can lead to customers being willing to pay more for the product, as it is perceived as valuable and unique.
In addition, controlled scarcity can be used to avoid market saturation and maintain control over prices. If the supply of the product is plentiful, competition could intensify and prices could be negatively affected by entering into a price war to attract consumers.
With this said, it seems that this is what is happening with the GeForce RTX 4080 and 4090, which supposedly are not having the expected sales.
According to three different sources, NVIDIA would be taking measures to prevent the prices of the GeForce RTX 4000 from falling in price. One of the sources mentions that the company has a contract with TSMC, which obliges it to continue using the chips to make new GPUs. However, production is on hold and NVIDIA is looking to transfer capacity to the 4nm node where possible.
Stopping production is a market strategy
Two other sources support this information and state that NVIDIA is trying to prioritize the production of its H100 graphics, professional products. NVIDIA apparently has enough GeForce RTX 40 inventory to last several months, though its pricing has been heavily criticized.
Retailers who have placed orders for the GeForce RTX 4090 and 4080 graphics cards say they are no longer receiving new units and that their distributors warn them about a shortage of stock. Creating an artificial scarcity would not only prevent prices from falling, but could even result in prices rising, as explained above.
Although this situation could continue for a while, it would be unsustainable, so it does not appear to be a permanent strategy for NVIDIA. Eventually, the situation will have to normalize and the prices of the GeForce RTX 40 will have to adjust. Otherwise, NVIDIA could face an overstock of these cards.
Fountain: Youtube
