Nvidia's Potential Move: Shifting Lovelace Desktop GPU Supply to Notebooks to Fulfill Demand in China

 

A recent report suggests that Nvidia is considering reallocating a portion of its desktop GPU inventory to notebooks in order to address the high demand for laptops in China. Although concerns arise about potential shortages of desktop graphics cards, the likelihood of such an outcome seems minimal.

According to a report by HardwareTimes, originating from China, this information should be taken with caution as it remains a rumor. The report alleges that Nvidia is diverting some of its Ada Lovelace desktop chip production capacity towards notebooks, instead of scaling up laptop GPU manufacturing to satisfy the demand.

It is suggested that the RTX 4060 and RTX 4070 desktop GPUs might be affected by this decision. Back in April, there were speculations about Nvidia reducing the supply of RTX 4070 GPUs due to sluggish sales, although any impact on the market from these potential actions was relatively modest.

The RTX 4060 and its Ti variants have not generated significant excitement, particularly in the Japanese market. This implies that there is an ample supply of these higher-priced cards, with some retailers offering them at discounted rates through special offers. The RTX 4060 Ti, for instance, has only recently made an appearance on the Steam chart and holds a relatively small share of users compared to other GPUs.

        (The top-performing graphics cards among Steam survey participants last month)

However, as highlighted by PC Gamer, a more constrained availability of these GPUs could potentially maintain their retail prices at the established premium levels, with no promotions or reduced prices accessible.

Any discussion about limited supply triggers recollections of the graphics card scarcity when prices escalated to three times their manufacturer's suggested retail price (MSRP) at one juncture. The convergence of the pandemic, chip-related challenges, and surging cryptocurrency values created a perfect storm, transforming graphics card procurement into a blend of chance and substantial financial investment.

Yet, even if the RTX 4060 and 4070 experience a reduction in supply, the comparatively low demand for these high-priced cards could result in their impact being scarcely noticeable.

Furthermore, there's the impending arrival of AMD's Radeon RX 7800 and RX 7700 to factor in. These GPUs are rumored to be officially unveiled at Gamescom 2023, scheduled for next week, and are anticipated to rival or even surpass Nvidia's midrange offerings while presenting a more budget-friendly MSRP. This development might induce Nvidia (referred to as Team Green) to implement price reductions for the RTX 4060/Ti and 4070 models.