EVGA, a major desktop graphics card manufacturer, has cut ties with NVIDIA. EVGA has confirmed that it will not release next-generation NVIDIA graphics cards. However, the company claims to support the existing NVIDIA graphics card and won’t align with brands like AMD or Intel in the near future.
EVGA’s Official Statement reads:
- EVGA will not carry the next-generation graphics cards.
- EVGA will continue to support the existing current-generation products.
- EVGA will continue to provide the current generation products.
EVGA is committed to our customers and will continue to offer sales and support on the current lineup. Also, EVGA would like to say thank you to our great community for the many years of support and enthusiasm for EVGA graphics cards.
Deteriorating Relationship Is The Cause
According to reports, the relationship between NVIDIA and EVGA has soured over the years. EVGA’s CEO and founder Andrew Han claimed the AIB margins have shrunken over the last few years from 25 percent in the year 2000 to nearly 5 percent in 2022.
On top of that, NVIDIA is also pushing its Founders Edition (reference) GPUs at various retail locations which makes brands like EVGA directly compete against NVIDIA, creating a partner-supplier conflict.
EVGA’s CEO also suggested that the company is losing money on its high-end graphics cards, which were higher-margin products just a few years ago. Going forward, EVGA will cut down the production of RTX 3000 series graphics cards, and the company is likely to clear the stock by the end of 2022.
What Does This Mean For Users?
For users of EVGA-NVIDIA GPUs, there is nothing to worry about. The company has confirmed to fully honor the warranty of all the graphics cards that it has sold. 80 percent of EVGA’s revenue comes from GPUs, while the rest is accounted for by its power-supply business, hence, the company will not run out of business anytime soon.
EVGA has a market share of 40 percent in the North American retail market and also enjoyed a strong foothold in Europe. Considering the latest development, NVIDIA is likely to work more closely with the next exclusive AIB partner Zotac to ensure the steady availability of the next-generation graphics cards.
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Story first published: Saturday, September 17, 2022, 15:30 [IST]