Cost Increases and Tariffs: ASUS to Increase MSRP on Graphics Cards and Motherboards
by Dr. Ian Cutress on January 5, 2021 5:45 AM EST
It is fairly easy to state that 2020 has had a deep effect on the supply chain mechanics of creating electronics and electronic components. Not only have there been logistical challenges in meeting regular levels of production, but the increase in demand due to work-from-home measures is putting additional strain up and down the ecosystem. On top of this, continued volatility with regards to trade and tariffs have been leaving more questions unanswered as to how companies involved in the results of all of this should engineer their operations.
To that end, ASUS has put out a statement through its public Facebook group stating that it will be increasing MSRP on components, with graphics cards and motherboards being highlighted as the initial targets, with more to potentially follow. The reasons for this are described in the post, made by long-time ASUS employee Juan Jose Guerrero III, are due to ‘increases in cost for components, operating costs, and logistical activities plus a continuation of import tariffs’. Guerrero goes on to say that ASUS ‘worked closely with our supply logistic partners to minimise price increases’.
The exact scale of the price increases will be borne through the next few weeks, as the price adjustments work their way through the supply chain to distributors and finally retailers. ASUS is a large scale production house for both AIB graphics cards and motherboards, and can often deal with economies of scale, so the fact that the company has chosen to be open about its MSRP increases should indicate that other similar businesses might have changes coming soon, if not already applied, given that the issue of component costs, logistics, and import tariffs are industry wide and not just limited to one company. ASUS highlights that these are two initial product lines, and ‘additional models may see an increase as we move further into Q1’.
Should an exact price differential list be made public, we will share it.
Source: ASUS PC DIY Group (Facebook)
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shabby - Tuesday, January 5, 2021 - link
Where can i buy these "graphics cards" that they're talking aboot?Flunk - Tuesday, January 5, 2021 - link
eBaylane42 - Tuesday, January 5, 2021 - link
For twice the price.....DanNeely - Tuesday, January 5, 2021 - link
I sorta lucked out on bestbuy an hour ago. Only getting a 3070 instead of the 3080 I really wanted, but between tariffs going up and ponzi coins on the rise again I figure anything I can get is a worthwhile replacement for my 1080. If supply is sane, I may end up getting a 4080 next year; but will make that decision when the time comes. If the next generation focuses on efficiency instead of redlining power consumption again it might end up being a 20xx style meh single generation upgrade.TEAMSWITCHER - Wednesday, January 6, 2021 - link
They do exist. I have managed to get an RTX 3080 for myself, and an RTX 3060 TI for a friend in just the last week. There are You Tubers, posting information on when Best Buy drops new products. Tuesdays and Fridays, seem to be the days to watch. Between 10am and noon.Mike738 - Tuesday, January 5, 2021 - link
This is just corporate spin. Asus execs saw all these rich fools paying 2x MSRP for stuff and I thought "Wow, we could raise prices across the board and still get tons of sales!"DigitalFreak - Tuesday, January 5, 2021 - link
Bingo!StevoLincolnite - Wednesday, January 6, 2021 - link
This exactly.Because it's worth mentioning that the price increases are world-wide, when the Tariffs are US-only.
Another reason to be annoyed at the USA...
lilkwarrior - Wednesday, January 6, 2021 - link
Typical cynical comment as always. Tech enthusiast outlets have warned about this at least a year ago; mainstream outlets like Linus Tech Tips reported this *will* happen over a year ago *before* the pandemic.From a business standpoint, a good deal of GPU & Motherboard manufacturers–in the best interest of their stakeholders–should increase the prices of all their GPUs & motherboards because it's plain as day they can't ship enough products to not get scalped. Rather than allow scalpers make as much as they do of their product they don't get, they should absolutely raise prices.
This is especially the case for prosumer cards like the 3090 & 6900xt.
BlakLanner - Tuesday, January 5, 2021 - link
Because their Crosshair and Maximus motherboards weren't expensive enough... I mean, I understand that costs might be going up but the damn Formula versions are already $500-$600. They are going to price themselves right out of the market.