A few weeks ago, I published an article stating that NVIDIA is considering setting the MSRP of the NVIDIA RTX 4070 Ti at $899 and that the company has notified AICs that this will be the launch price provisionally. Multiple sources have informed us that they have gotten a last-minute update from big green with what seems to be a pre-launch price cut and the current tentative MSRP of the NVIDIA RTX 4070 Ti, which is $799. This information was passed on to us by big green.
NVIDIA has discreetly informed AICs of a price drop for the 4070 Ti’s manufacturer’s suggested retail price (MSRP): initial estimates place the price at $799.
Before a product launch, NVIDIA tends to keep the cost of its GPUs close to itself. However, certain AICs had already begun taking orders from some of their channel partners at an MSRP of $899.
On the other hand, customers were notified today that the initial launch date had been pushed back to $799, and the price difference would be rectified for orders already placed. This pricing point will likely remain unchanged now that we are getting closer to the debut (although that is just my educated guess).
The following passage from my initial piece is still pertinent today (although the price is not expected to go up and is instead more likely to go down if Jensen changes his mind once more):
Keep in mind, however, that Jensen wields the black leather jacket and all of us must submit to its power. So he could very well snap his fingers and change the MSRP at the very last moment should he want to. This is also why I am still tagging this post as a rumor – because until the marketing and documentation gets made for the launch, details like this can still change.
NVIDIA may have had a change of heart for several reasons, one of which is that the United States government delayed the implementation of tariffs on GPUs at a rate of 25% for nine months, which was scheduled to begin on January 1. This means that if NVIDIA and AICs had maintained the same price structure for their cards, their profits would have been reduced. They may have decided to bear the loss regardless and give the savings to the customer due to the business being unable to resume operations.
GPU tariffs that were resuming on 1/1 have been pushed back 9 months. #NVIDIA #Intel #AMDhttps://t.co/GVLjFYotnY— Usman Pirzada (@usmanpirzada) December 17, 2022
In contrast to its much more expensive sibling, the NVIDIA RTX 4090, the NVIDIA RTX 4080 has had a much harder time flying off the shelves, which is the primary reason for this. But of course, the second biggest reason is probably the completely lackluster traction that the NVIDIA RTX 4080 has had. The following is an updated version of the value proposition for NVIDIA’s RTX 40 series, which is based on the value that is provided by the RTX 4090:
|GPU||FP32 TFLOPS||MSRP||TFLOPS/$||VALUE (%)|
|GeForce RTX 4090||82.59||1599||0.05165||100.0%|
|GeForce RTX 4080||48.74||1199||0.04065||78.7%|
|GeForce RTX 4070 Ti||40.09||799||0.05017||97%|
As can be seen, the RTX 4070 Ti with this revised MSRP is much closer to the value that the TITAN gives from a TFLOPs/$ standpoint. This should allow the card to compete favorably with AMD’s Radeon RX 7000 series GPUs, which were only released.
With only a few weeks left until launch, NVIDIA has made the decision to lower the price of its rather mainstream entry, and other price cuts might be on the way if the person wearing the black leather jacket believes it to be necessary. If any more adjustments are made to the prices, I will immediately report them.