Navi 22 GPU below MSRP in China upsets AMD

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China’s special graphics card RX 6750 GRE is too cheap! AMD takes action: fines, suspension of goods


Kuai Technology reported on February 21 that AMD released the RX 6750 GRE 10/12GB graphics card specifically for the Chinese mainland market in October last year. The starting prices were 2,219 yuan and 2,379 yuan respectively. However, the actual selling price quickly broke through, which made AMD can't stand it anymore.

At the end of January, AMD issued an internal notice to AIB brand manufacturers and dealers, requiring that the prices of RX 6750 GRE 10/12GB must be strictly controlled, with the lowest prices being 2,149 yuan and 2,379 yuan respectively.

However, the actual selling price of both is lower than this bottom line. The RX 6750 GRE 12GB can now be purchased for only 2,249 yuan.

Seeing that it still couldn't control it, AMD immediately took stricter measures and began to impose penalties.

It is reported that in the recent implementation, if AMD finds that the online sales price of RX 6750 GRE is lower than the minimum price, it will directly find the brand dealer and impose certain penalties.

Specifically, the first, second, and third times found will result in a fine of 500 yuan per card.

If it is discovered for the fourth time, a fine of 1,000 yuan will be imposed and the AIB brand owner will be required to directly stop the product.

It has to be said that AMD still attaches great importance to the RX 6750 GRE specially supplied to China. In order to maintain their market position, AMD has not allowed the newly released RX 7600 XT to enter the Chinese market.



https://m-mydrivers-com.translate.g...?ref&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en-GB
 
Well the card is selling really well, there’s just a crapload of them to the point where retailers are handing them out as door crashes to get people in the door. You think AMD would like that.
 
- Company floods market with product during time of insatiable demand.
- Insatiable demand dries up, leaving company with massive surplus of parts to the point that it delays release of new product.
- Economics 101 supply and demand behaviour takes over.
- Company mad that previous decision to flood market has lowered the average selling price of product in oversupply.

Cool, makes sense. GG AMD.
 
Who cares, market practice in China can look different from what we see in the west. Look at what restrictions Nvidia abides to regarding their top silicone in China.

It doesn't surprise me that amd would like to restrict a China specific sku regarding price and availability. Good for them, hope they make plenty of money.
 
Dear AMD, I think what you're trying to say is, "Buy Intel Arc."

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This must be a thing specific to China. I don't believe its legal in the US to set price floor's like this. Once the product is sold to a retailer, right of first sale states that they can do whatever they want with it, including resell it for whatever price... that's what MSRP is. Recommended price, not required price.
 
Sindalis said:
This must be a thing specific to China. I don't believe its legal in the US to set price floor's like this. Once the product is sold to a retailer, right of first sale states that they can do whatever they want with it, including resell it for whatever price... that's what MSRP is. Recommended price, not required price.
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They cannot block them to sell it the price they want from what seem to be written that why they try to force them by saying they will stop shipping them the next batch to try to convince them, not sure how legal that part is.

In the US a lot of that must be going on, because when the playstation was impossible to buy we rarely see big chain rise their price when they could have easily, same goes for Apple product, I imagine there some said or not said if you do not sell it the way we want you will stop to receive stocks in the future. I think there is a precedent (clothing item) when the sellers won because the brand created consequence for them not following suggested price sales but I can imagine resellers not wanting to sour relationship and for something that is sell-out would be hard to show you did not receive enough stock because of your previous action.
 
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Sindalis said:
This must be a thing specific to China. I don't believe its legal in the US to set price floor's like this. Once the product is sold to a retailer, right of first sale states that they can do whatever they want with it, including resell it for whatever price... that's what MSRP is. Recommended price, not required price.
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cjcox said:
This may be relevant info: https://www.ftc.gov/advice-guidance...upply-chain/manufacturer-imposed-requirements
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Very interesting story. I have been in this industry long enough to know one thing. AMD, Intel, and NVIDIA, would NEVER put anything like this in writing or even suggest monetary penalties like this story lays out. The way it works is that when the AIB starts getting "out of line," you simply cut off its supply. "Oops, sorry, our supply projections were incorrect and we have no more GPUs for you to sell." That is the way it works. This story is bullshit.

OK, that said, maybe some rouge Chinese middleman is pulling some shenanigans, but this would never be corporate policy at AMD, Intel, nor NVIDIA.
 
Sindalis said:
This must be a thing specific to China. I don't believe its legal in the US to set price floor's like this. Once the product is sold to a retailer, right of first sale states that they can do whatever they want with it, including resell it for whatever price... that's what MSRP is. Recommended price, not required price.
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No it happens all the time in the US, and is super common with electronics. Have a look at TVs, you'll find they are the same price on Amazon, Best Buy, Walmart, etc. The reason is agency pricing: That's where the manufacturer says "You need to sell this at this retail price." Now you might wonder how they can do that, since as you say there is the whole right of first sale and all that. Well they do that by the simple "We won't sell to you if you don't do what we say." So if Walmart decided to just ignore Samsung and sell the TVs cheaper, suddenly you'd no longer be able to buy Samsung TVs at Walmart because Samsung wouldn't sell them any.

It got popular as a way to protect against discount sellers and a quality death spiral, which is one of the things that killed RCA. So what happens under wholesale pricing, where the manufacturer sets the price they sell to the retailer, but the retailer is free to do as they like is you get some discount retailers. They will sell for less than everyone else, sometimes unsustainably less. This causes big vendors to get mad, so the manufacturer will get a call from someone like Walmart or Best Buy and they'll say "You need to give us a better price, so we can compete with the discount seller, we can't afford to sell that low!" If you do that for one, the rest of the big ones are going to want the new price too. That squeezes your overhead, and you may have to cut down on quality to try and make the price you need. This then leads to further cuts, and so on and pretty soon you are the crap budget brand that nobody wants.

So most tech companies these days do agency pricing where the dictate retail pricing, and retailers play along because they don't want to get cut out.
 
Sycraft said:
No it happens all the time in the US, and is super common with electronics.
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No, this does not as explained in the story about this. Monetary penalties imposed on retailers for pricing is simply anti-consumer and against the law. I think you may be confusing MAP pricing with MSRP pricing. That said, I think you literally just described what I explained above. However that and what is explained in the "reporting," are two very different things.
 
Sindalis said:
This must be a thing specific to China. I don't believe its legal in the US to set price floor's like this. Once the product is sold to a retailer, right of first sale states that they can do whatever they want with it, including resell it for whatever price... that's what MSRP is. Recommended price, not required price.
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You would be wrong. It's called MAP pricing or Minimum Advertised Price. Quite a few manufacturers enforce this scheme on retailers here in the US.
 
Gideon said:
You would be wrong. It's called MAP pricing or Minimum Advertised Price. Quite a few manufacturers enforce this scheme on retailers here in the US.
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Was going to make this same comment, I've seen it in numerous hobbies I've been in too, model trains, aquariums, toys, hell electronics is rife with it. Now sometimes there is a time limit on it e.g. after 2 months of release they can drop prices, but either way it's very anticonsumer.

Legally it's isn't against the law to sell lower than MAP, but then manufacturers won't sell to you and you'll be forced to buy what everyone else pays at and at that point you cant exactly sell cheaper anymore unless you lose money
 
Gideon said:
You would be wrong. It's called MAP pricing or Minimum Advertised Price. Quite a few manufacturers enforce this scheme on retailers here in the US.
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You can sell for less than MAP you just can't show the price on your website or in ads. If you go in-store or add the product to your virtual cart they can show you the actual price.
 
Axman said:
You can sell for less than MAP you just can't show the price on your website or in ads. If you go in-store or add the product to your virtual cart they can show you the actual price.
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MicroCenter does this a lot If their sale price is "too good". I don't think u even need to add to cart anymore, just click a "reveal price" button which has a disclaimer about the price being too far below MSRP to openly show. The "Advertised" part of M.A.P. does a lot of heavy lifting ;)
 
Axman said:
You can sell for less than MAP you just can't show the price on your website or in ads. If you go in-store or add the product to your virtual cart they can show you the actual price.
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Hmm guess I was thinking of Minimum Retail Price. Here is a link to that draconian setup https://ecotechmarine.com/new-customer . In the saltwater hobby this is super common setup and you wont be finding a better deal on the equipment unless the manufacturer decides to have a sale.
 
I think there’s a lot more to this story than what’s told here, AMD punishing their AIB’s through retailers doesn’t make any sense. But China has a large amount of “unauthorized” AIB’s who have access to huge quantities of second hand Navi22 chips left over from the mining crash. Those could be refurbished, rebranded, and flashed to be a 6750 GRE easily for next to nothing. So while I don’t see retailers having any incentive to mark down official cards because the supply chain protections would have them selling at a loss, those unofficial ones even at those below market prices could still be a 100% profit margin.
AMD targeting fines on those cards to protect their new sales in an attempt to cut off advantages of what is essentially a second hand market makes sense, and is something they could legally do.
 
Gideon said:
Hmm guess I was thinking of Minimum Retail Price. Here is a link to that draconian setup https://ecotechmarine.com/new-customer . In the saltwater hobby this is super common setup and you wont be finding a better deal on the equipment unless the manufacturer decides to have a sale.
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I f*cling hate Ecotech and everything about their business... but they hardly are the only ones in the hobby that does that, virtual every major company of aquarium products does it.

And it is the same as MAP, the difference is that area is absolutely tiny, with a LOT of brands owned under one big umbrella company that if you as a store owner whether brick and mortar or online refuse to abide by their rules they can literally put you out of business by refusing to sell you any products that the parent company owns
 
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