If 2021 goes down as the worst graphics card shortage in history, 2022 may be characterized as the greatest recovery for prices and availability. We’ve already noted multiple improvements in the opening months of this year, but the US government’s recent announcement marks another major milestone for getting things back to normal.
The Office of Trade Representatives just announced that various computer hardware items including PCBs and more will no longer be subject to the 7.5-25% tariff fees that drove prices up shortly after the Nvidia RTX 30 Series and AMD Radeon RX 6000 Series launched. These tariffs were imposed back in January 2021, when exclusion clauses expired for Chinese imports including computer hardware and components. The immediate result at the time was that AIBs, particularly those with manufacturing based in China, raised prices substantially to account for the import cost increases.
Components such as graphics cards are traditionally considered low margin products. This made the subsequent price hikes for consumers of little surprise. Even still, the unilateral move by AIBs to raise prices angered a lot of consumers. New graphics cards were made substantially more expensive than previous generations. This has in turn contributed to the perfect storm of events that’s made the PC gaming market unattractive to average consumers over the past 18 months.
Even today, list prices still remain well above Nvidia’s original MSRP for most models. However, the decreased demand from crypto miners combined with the partially satisfied demand among the gamer crowd has finally resulted in better conditions for graphics card pricing. Add in the fresh savings of tariff exemptions, and we’re sure to see prices continue
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