Operated by IDC data and demand curves for Intel, AMD and NVIDIA products, a regular blogger on the site
Moreover, according to the author of the study, historically, NVIDIA's market share was weakly dependent on the average selling price of a video card of this brand. In fact, the demand for NVIDIA graphics cards was determined not by the price factor, but by the level of performance and feature set. At the same time, NVIDIA has been increasing prices for its video cards for a long time, but its market share continues to grow. In other words, if NVIDIA graphics cards are attractive to potential buyers, they will purchase them at high prices.
Of course, it cannot be argued that AMD cannot βstir upβ a competitor with everything - the debut of the Radeon RX 5700 series video cards forced NVIDIA not only to reduce the prices of first-generation GeForce RTX video cards, but also to offer an updated lineup with worse profitability. However, an expert at Roland George Investments claims that AMD is unable to drag NVIDIA into a full-scale price war.
Now the demand for NVIDIA video cards has reached an inelastic phase, and price cuts will not contribute to a significant change in sales volumes, as well as their increase. A "price war" will not be able to strengthen NVIDIA's market position, although the company can't complain anyway, since it now controls about 80% of the market. Investors are accustomed to focusing on the company's revenue and earnings per share, and not on NVIDIA's market share. In this sense, a "price attack" on AMD's positions will not bring benefits to a competing company in the form of an increase in the price of its own shares.
Source: 3dnews.ru