Here's how pricing by NVIDIA RTX will be affected by rates

So we have an update of the cost of NVIDIA graphics cards in the near future because of the impact of tariffs on the $ 200 billion of products made in China. We discussed this subject in detail before right here, so if you want to keep up with the situation, you should probably read it before. In short, these rates will come into effect tomorrow, September 24th.

Large AIBs with Taiwanese manufacturing capabilities will take the leap in a month or two, the smaller ones like Zotac will have to absorb the costs

Virtually all PC components are affected by tariffs – which include motherboards, RAM kits, hard drives, graphics processors and processors – with the sole exception of SSDs. On the device side, the keyboard and mouse are also exempt, as are predefined systems (including servers) and complete laptops. The final price is 10% and will come into effect tomorrow (24/9). Additional partners can either move their manufacturing / assembly to another country (probably Taiwan) or absorb tariffs (which means reducing their margins or passing on costs to their customers). OEMs, etc. have the ability to move the assembly to areas such as the Mexican Free Trade Zone (or of course Taiwan). Needless to say, none of these things can happen instantly – so we will witness a temporary rise in prices as

Graphics cards currently occupy a significant part of their production in China, companies have the opportunity to absorb the tariff or transfer the production to another country, such as Taiwan, to avoid the same problems. We have not been able to give you a clear idea of ​​the kind of cost increase you can expect from the product's selling price.

Based on the information we have received, we expect price increases of approximately $ 75 to $ 80 for the RTX 2080 Tis and $ 50 for the RTX 2080 variants. For large AIBs such as MSI and GIGABYTE, which have already facilities in Taiwanese, the price increase will be temporary – a maximum of 2 months – before they can return to normal prices. Small AIBs like ZOTAC, which do not yet have manufacturers in Taiwan, will be disadvantaged and disrupted. They will be in the unenviable position of absorbing the tariff and reducing their margins while retaining the same price or passing on the cost to customers (which means that when the major AIBs return to the normal price, they will not be able to will become uncompetitive).

Example: MSI NVIDIA RTX Series

Here is one of the lists we received with the post-tariff pricing in effect very soon (if it's already done):

• RTX 2080 Ti Gaming X Trio: $ 1231 to $ 1310
• RTX 2080 Ti DUKE 11G OC: $ 1212 to $ 1290
• RTX 2080 Ti VENTUS 11G OC: $ 1203 to $ 1280
• RTX 2080 Gaming X Trio: $ 849 to $ 900
• RTX 2080 DUKE 8G OC: $ 840 to $ 890
• RTX 2080 VENTUS 8G OC: $ 830 to $ 880

One of the AIBs we talked to also had to say about price hikes:

"We should only have a gap of a month before Taiwan is online. Rest of the line [mentions various of their RTX models] will be on the new assembly in Taiwan. Chronology [of shipment schedule getting caught up in tariff] thrown a key in our plans. Originally, we thought we had some of the pre-launch allocation [reserved for Amazon, Best Buy, Newegg and other retailers] Still to be given to IS partners, but as the volume of pre-launch prepaid orders to retail exceeded the NVidia allocation, we gave them the pre-tariff cost structure that we had to allocate to partners real first. No matter what we can not accomplish this week, we will absorb the 10% between us and the retailer to continue to fulfill the end customer's orders, which means that all SI orders, for now, increase by + 10 %. the cost". – Anon AIB

This means that, even if tariffs start tomorrow, many retailers with inventory from old stocks will likely stick to the standard price until they are finished. wait at least 3 months before the price is normalized. Meanwhile, Pascal's stocks, which have already been distributed, should not be overly affected by these tariffs and will only become a better deal for the players. A very interesting side effect of this situation is that IBAs like ZOTAC may actually be looking to develop new markets outside the US to overcome their disadvantage on the Taiwanese manufacturing side.

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