[DT]ATI Graphics Partners Think Radeon 4870 Is Too Good

3297 Views 72 Replies 37 Participants Last post by Bellatrix, Mar 12, 2009

OrphanShadow

Discussion Starter · Mar 11, 2009

Source

Quote:

Declining to follow the price cut plan

DailyTech revealed last week ATI's new pricing strategy to compete with NVIDIA's GTS 250 rebrand, also known as the 9800 GTX+.

The ATI Radeon HD 4850 512MB was to drop to $129, while the Radeon HD 4870 512MB was scheduled to be cut to $149. This was supposed to be accomplished primarily through the use of mail-in rebates, which ATI would help offset.

Most of the board partners took up the offer on the 4850. However, due to several factors converging at once, the 4850 can now be picked up for around $120 at several e-tailers, albeit with the mail-in rebate.

The story with the 4870 is something else entirely. The Radeon HD 4870 512MB was supposed to drop to $149 with a mail-in rebate, but ATI's graphics card partners are resisting this as they feel that since the card outperforms the GTX 260, it should compete against that card. They instead are positioning the 1GB version of the 4850 against the 1GB version of the GTS 250 at the $149 price point.

One of our sources in Taiwan told us: "The ATI lineup is very strong, and we feel the 4850 should go against the GTS 250 and the 4870 against the GTX 260".

ATI has been very aggressive with its pricing, with lower prices and higher performance in the same segments as its nemesis NVIDIA. This has led to declining revenues for board manufacturers, already hard hit by lower demand due to the global recession

1 - 20 of 73 Posts

mr.derp

· #2 · Mar 11, 2009

I didn't know they used mail in rebates to lower prices. What is that crap, majority of people don't even use their MIRs! (I guess it's why they can lower the prices so low) I want to be able to return my card to newegg or who ever if it breaks. By the time that time period is over, the MIR is usually over. A lot of companies are sneaky about their MIRs too. It could take you 2 months to get that money back or they never send you back anything, giving some dumb reason.

DuckieHo

· #3 · Mar 11, 2009

ATI just needs to cut out a board partner or two. That will teach them from questioning.

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Tempest001

· #4 · Mar 11, 2009

That's pretty stupid IMO.
If they can lower the price, then by all means, do it.
If the card were priced with the 9800+ (after rebates, of course) but still performs as good as a gtx 260, then the 4870 would be the obvious purchase (you know, aside from those who dislike doing MIR's and the fanboys who swear by nVidia.) Price/performance, ya know?

It's a shame they didn't lower the price.

TripleC

· #5 · Mar 11, 2009

somebody help me out.
this article is saying
1. the partners don't want to cut the price while ATI dropped the price (which give me more profit on 4870)
or
2. the partners are telling ATI they don't wanna do this , and using the 4850 1GB instead?

EDIT: if it's option 1 i can see why... greedy

Monkmachine

· #6 · Mar 11, 2009

Why support nvidia if they are failing? They should pass the savings from ATI to the customers.

DuckieHo

· #7 · Mar 11, 2009

2

Quote:

Originally Posted by TripleC

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somebody help me out.
this article is saying
1. the partners don't want to cut the price while ATI dropped the price (which give me more profit on 4870)
or
2. the partners are telling ATI they don't wanna do this , and using the 4850 1GB instead?

EDIT: if it's option 1 i can see why... greedy

It is Option 1 and you don't know about the margins on PC products.

Quote:

Originally Posted by Monkmachine

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Why support nvidia if they are failing? They should pass the savings from ATI to the customers.

Partners do not make that much from sales....

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-iceblade^

· #8 · Mar 11, 2009

don't blame them tbh

i think they're already feeling the pinch and during these tough economic times, any profit is profit...

lolhax

· #9 · Mar 11, 2009

Quote:

Originally Posted by mr.derp

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I didn't know they used mail in rebates to lower prices. What is that crap, majority of people don't even use their MIRs! (I guess it's why they can lower the prices so low) I want to be able to return my card to newegg or who ever if it breaks. By the time that time period is over, the MIR is usually over. A lot of companies are sneaky about their MIRs too. It could take you 2 months to get that money back or they never send you back anything, giving some dumb reason.

It's AMD, chill. Not some XYZ-madeinchina-nowarranty company.

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MCBrown.CA

· #10 · Mar 11, 2009

Shenanigans!!

Too good?!

If ATI drops the price, partners drop the price. That's the way it should be. If they don't drop the prices, they are directly, intentionally gouging the consumer.

I suspect legal action won't be far off.

Cubeman

· #11 · Mar 11, 2009

If they don't lower there prices all ATi has to do is cut them off. They have every right not to sell there products to people. If ATi lowers there price then they can lower there prices accordingly and still make the same profit if they are doing just fine with the current profit they are making then why don't they just lower it while ATi drops there price.

DuckieHo

· #12 · Mar 11, 2009

Quote:

Originally Posted by MCBrown.CA

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Shenanigans!!

Too good?!

If ATI drops the price, partners drop the price. That's the way it should be. If they don't drop the prices, they are directly, intentionally gouging the consumer.

I suspect legal action won't be far off.

...for what?

There is absolutely nothing illegal there. It would be illegal if they worked with the competitor NVIDIA not to drop prices.

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zomgiwin

· #13 · Mar 11, 2009

4

Quote:

Originally Posted by DuckieHo

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ATI just needs to cut out a board partner or two. That will teach them from questioning.

agreed.
we need evga

already got xfx, so i'm content, but evga would be nice

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grunion

· #14 · Mar 11, 2009

I've said it before

Poor XFX jumped on the Big Red Wagon 6 months too late, you know they're hating these price drops.

sLowEnd

· #15 · Mar 11, 2009

Greed will get them nowhere

Cdpkook132

· #16 · Mar 11, 2009

Its all in preparation for the 4890. The 4890 512 is supposed to be $199 while the 1gb version comes in at $299. The 4870 needs to be price dropped to a different purchasing bracket. It just so happens that the Price/Performance brackets betweeen nvidia and ati are different right now by a couple notches.

Derp

· #17 · Mar 11, 2009

This is ok ONLY if they upgrade their warranties, All of them except XFX are a complete joke and XFX has been overpricing their ATI cards because they know they have no competition warranty wise on ATI's side of vendors. Having BFG, EVGA and XFX all supporting lifetime warranties and keeping competitive with eachother makes it that much easier to pick nvidia over ATI.

But they wont change crap and with stick with fail 2 or 3 year warranties and grub up the left over cash instead of upgrading warranties or giving customers the lower prices.

TripleC

· #18 · Mar 11, 2009

Quote:

Originally Posted by DuckieHo

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It is Option 1 and you don't know about the margins on PC products.

Partners do not make that much from sales....

well our suppose business/ common sense of win is pretty much based of greed isn't it?

but oh well. everyone's guilty

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RAND0M1ZER

· #19 · Mar 11, 2009

Yea, XFX is the only real ATI vendor and they just came in a few months ago.

Arkanor

· #20 · Mar 11, 2009

Quote:

Originally Posted by MCBrown.CA

View Post

Shenanigans!!

Too good?!

If ATI drops the price, partners drop the price. That's the way it should be. If they don't drop the prices, they are directly, intentionally gouging the consumer.

I suspect legal action won't be far off.

Gouging? These are still some of the best cards on the market, and they're right now in line with products of equivalent performance. They probably figure they can do better by selling fewer cards at a higher price point than a higher volume at a lower one. They're not going to accomplish anything by lowering the price further other than saturating the market with 4870's and 4850's and reducing the demand for their next high-performance card.

Believe it or not some companies would like a profit margin higher than peanuts, and you would do the same thing.

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1 - 20 of 73 Posts

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