In the last couple of years, most articles’ prices have gone up madly. Then how can GPUs avoid this tragic rise and high cuts on the users’ pockets? Many have been worrying about their budgets and price match while buying IT producers, which is happening immediately. Why are graphics cards so expensive? Through this article, I will uncover the reasons behind this sudden hike in prices.Â
The first and foremost reason behind this rise is always disruption in the demand and supply equation. Moreover, if we look at the global scenario, we find chip shortage globally. Then the red-tapism practices in shipping and many other aspects are more than enough to push prices up every day. To know all the reasons in detail and get a way forward from this breathtaking rising price trap, you need to stick to the data below.
Graphics Cards Still Expensive in 2023 Due To Covid-19 Prices Hike
No one can deny the influences of Covid-19 over a couple of years, and the massive child it has given birth to is skyrocketing inflation. The repercussions are so drastic. The demand for everything that has domestic use has gone up, and the supply went down because of import and export restraints. Why are graphics cards so expensive? It is not only GPUs but various other electronic components.
Users worldwide like to spend much of their time at home playing games, watching old series, and working from home. These are the pushers that also give rise to the need for graphics cards. Moreover, Covid-19 has made online shopping more popular, and every user who didn’t use to order online had to come in front of the screen. And when there is a screen involved, the GPU comes automatically.
So, it is how Covid-19 has given rise to the prices of graphics cards. However, let’s dive into the detailed information containing some good points which are easy to understand.
6 Reasons for Rise in Prices of Graphics Cards
There are many reasons to push prices up, and I covered all the possible ones in the 6 points below. Whether it is an increase in demand, lack of supply, global effects, disruption in business volume, or any other reasons, let’s find out everything about the topic. Why graphics cards are about get lot? Take a look below.
1) Demand and Supply Mismatch
Demand for graphics cards is so high because of various factors. In the last two years, the number of users has increased magically around the globe, and it has created a lot of room for new demand. However, the manufacturers realize the niche potential and try hard to meet the demand needs, but they are not making the most of the requirements.Â
And when there comes a mismatch between demand and supply and demand increases, the product price increases. On the other hand, if demand goes down, it also gets the price down. The reasons are so diverse, but you can look at the best GPU for deep learning before we dive into further details.
2) Scalpers to Hoard
Scalpers grab products from the market and hoard them to get high profits by selling them online. In recent years, as Covid has restrained physical movements to the needs, people prefer online shopping. Scalpers didn’t allow the opportunity to go to waste and played the best innings to get the max out of this time. It is another reason why video cards are so expensive.Â
3) Advanced GPUs with Loaded Features
Another essential factor that plays a significant role in increasing the prices of any product is the increase in quality and service. Looking at the development and advancement of GPUs in the last years will stun you by all means. It has done a tremendous job by putting the best features with a max storage option, better-allowing setups, and more power to handle errors and to provide you with premium quality images.
When you need a luxury experience with anything you buy, you must pay more for that luxury than the ordinary. So the same goes for graphics cards. Nowadays, the graphics cards are far better than the old ones from a few years ago.
4) International Shipping Issues
Shipping is a significant cause behind this rise. Recently, multiple incidents have happened, and they are enough to take things up. Brexit for getting the UK out of the European Union has brought European shipping issues. Moreover, shopping between North America and Asia is also more complex. If you still wonder, you need to keep reading till the end.
Why are graphics cards so expensive 2022? I hope you got the answer; however, as we touched on earlier, Covid has changed international business activity drastically, and if we see the benefits, only a few have gained. The masses have suffered this whole time.
5) Lack of Competition
The two big guns need a better relationship regarding the healthy competition. Over the last decade, if we look at the series of launches and graphics of prices, Nvidia has had no significant competition. It has been raising the prices solely, and AMD has followed the route only a little. So, the lack of competition allows Nvidia to monopolize the market. And monopoly is only suitable for some end users.
6) Global Chip Shortage
The current global chip shortage has turned the table and put aside the estimates and calculations. Whether you make an airplane, a TV, A laptop, a tablet, or whatever from electronic accessories, a chip will make its room to be in use. So, the shortage has alarmed the manufacturers, and most of them stopped producing final products using chips.Â
The prices of graphics cards, tablets, gaming consoles, laptops, and other devices have increased. After reading the six points above, you must know why prices have increased. Why are graphics cards so expensive? I hope you got the answer.
Why are RTX Cards So Expensive?
The RTX cards are expensive but worth it. There is no hard and fast reason to give rise to its price, but it is very similar to those I discussed above. Moreover, the advanced features with a competitive edge over all other GPUs on the market give it an edge in asking for more money.
However, the biggest reason is the abundance of demand daily as the tech is growing, and the manufacturers are getting the benefits by cutting users’ pockets.Â
When Will It Come Down?
Over 10 years, things have changed entirely. It was a fiction that we are living in now. The volume of demand has touched the sky when it comes to chips and semiconductors. The governments are concerned about the shortage of semiconductors, passing bills to get it back on track. The manufacturer of Nvidia hasn’t shown anything obvious about when the pieces will come down. It will take years to manage the needs and to create a good match between demand and supply. Are graphics cards still expensive in 2023? Yes, they will be even more than the price of this year. It is what reports say and companies claim because of the disruption in the model of business activity due to multiple reasons.
If it is about hope only, then we may say yes. If we look at the ground reality and the hazards the industry has been facing over a couple of years, it seems impossible to get the prices down in a matter of a year or two. It needs sustainability, more supply, healthy competition, and substitutes to decrease costs.
Covid-19 is undoubtedly a big pusher, but someone else is responsible. Yeah! Covid-19 has produced more room for online business, shopping, restraint physical movements of commodities, imports, export constraints, etc., which has added a lot to the price of graphics cards and other electronic components.
Why are graphics cards so expensive? After putting precise reasons with fair enough explanations, I hope you got the answer to this question above if I give you a wrap-up summary of the senses. Behind the rise in the price of GPUs, it goes like, Covid-19 impacts, the global shortage of chips, disruption in demand and supply equation, advanced features, work from home, etc. Moreover, the lack of competition pushes it forward drastically.
Wrap Up
