AMD admits to controlling shipments of GPUs and CPUs to keep the price up, but…

AMD admits to controlling shipments of GPUs and CPUs to keep the price up, but…

In the words of Lisa Su, the company which is CEO, AMD, has been controlling the amount of shipments of GPUs and CPUs since mid-2022. By doing this, one controls what is supply and demand. As a consequence, prices can remain high since there is not enough supply in the final market, which does not give any motivation for price reduction.

We think the first quarter is the lowest ever for our PC market, for our PC business, and we'll see some growth in the second quarter and then a seasonally higher second half. In terms of lower-than-expected shipments, I think in the third quarter and in the fourth we've been lower than expected.

We will raise, to a lesser extent, in the first quarter. So I think you can tell from our low single digit guidance. And then we'll go back to a more normal environment. Now, just as a reminder, the first half is not usually a time for seasonally weak customers.

– Dr. Lisa Su, CEO of AMD

Also the CEO of AMD, expects that the stagnation of the PC market has already reached its lowest point and expects that the Q2 and Q3 of this year, start the rebound in sales worldwide. Despite the company's efforts to control supply and demand, it has had to lower the price (protection) of the Ryzen 7000 series processor, since the demand for these chips has been low, due to the high cost of the ecosystem.

Other companies have followed AMD's sales strategy, such as NVIDIA, which has also been restricting shipments of its GPUs since last year.

Source: Videocardz

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