Yes, you read that headline right: despite the fact that neither AMD nor Nvidia manufacture a product that requires a magnetic drive, both claim that the hard drive shortages that resulted from the 2011 Thailand flood disaster impacted their ability to sell graphics processors, and ultimately their bottom line. Both AMD CEO Rory Read and Nvidia CEO Jen-Hsun Huang had said last quarter that they didn't expect any impact at all from the floods — "it's really a non-factor," said Huang — but Nvidia just told the world that it may have earned roughly $116 million less revenue than the company originally expected due to the hard drive shortage (as well as Tegra 2 decline), and AMD told investors that it saw "a little bit of pressure in terms of hard disk" during its earnings call today.
There's a perfectly logical explanation, of course, because we've heard this rhetoric before: with fewer hard drives, fewer PCs can be sold, period, and all component manufacturers suffer. Interestingly, though, Nvidia also suggests that some OEMs chose not to include GPUs in their systems at all due to the price of hard drives. Perhaps Intel's somewhat-improved integrated graphics and AMD Fusion aren't the only reasons discrete solutions are getting the heave-ho.

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Long live AMD! i support you!
Posted on Jan 25, 2012 | 1:33 AM EST reply Recommend (1) Flag actions
I can post screenshots for no reason too!
But really, I feel like hard drive prices were less of a factor on GPU sales than being in the middle of a generational gap as well as improved integrated offerings. Any enthusiast in their right mind would’ve avoided biting on buying a new GPU in the last few months (I remember Vlad even mentioning it in the comments on the Ultimate Gaming Rig article) and integrated offerings are only getting better, especially power wise.
Posted on Jan 25, 2012 | 2:18 AM EST reply Recommend (7) Flag actions
Not surprising really. Some people will choose not to make new builds while HDD prices are high.
Posted on Jan 25, 2012 | 1:33 AM EST reply Recommend Flag actions
Good thing I bought a 1tb hard drive for $50 right before the flood.
SSDs are starting to become more prevalent too.
Posted on Jan 25, 2012 | 1:40 AM EST reply Recommend (1) Flag actions
Meh, it could have some merit, but it sounds a little like a scape goat to me.
Posted on Jan 25, 2012 | 1:43 AM EST reply Recommend (1) Flag actions
More fingerless glove trolling. I say enough.
Posted on Jan 25, 2012 | 1:49 AM EST reply Recommend (4) Flag actions
This part makes complete sense to me: “Nvidia also suggests that some OEMs chose not to include GPUs in their systems at all due to the price of hard drives.”
Hard disk prices have really, really shot up, and PC makers have no choice but to cut costs in ways such as this. The advanced integrated GPUs in the newest Intel and AMD processors came just at the right time, it turns out.
Posted on Jan 25, 2012 | 1:50 AM EST reply Recommend Flag actions
Taking a look at the comments here, there’s a lot of senseless, stupid images that people are embedding. It’s honestly messing up the comments section. The Verge comments section isn’t 4chan. I really hope images are disabled.
Posted on Jan 25, 2012 | 1:52 AM EST reply Recommend (1) Flag actions
Sometimes an image is worth a thousand words, but they definitely need to scale them and feed the correct sizes to the desktop and mobile versions. And stand ready with the banhammer for inappropriate images, of course.
Posted on Jan 25, 2012 | 4:43 AM EST via mobile reply Recommend (1) Flag actions
> Sometimes an image is worth a thousand words
A .jpeg however is worth -1000 words. Whoever OK’ed image embedding with no scaling is an idiot, it really does look like 4chan now.
Posted on Jan 26, 2012 | 8:15 AM EST reply Recommend (1) Flag actions
High end graphics cards sales are suffering because of the success of console gaming. You just don’t need a powerful graphics card to run a port of a game made to run on six year old hardware. I would also blame poor quality of games in general.
Low and mid-range, thank Intel for that. Integrated cards are mostly decent for web + HD video, which is what 90% of people do.
Posted on Jan 25, 2012 | 2:59 AM EST reply Recommend Flag actions
I don’t know why anyone would be surprised that two companies that make computer components are saying that their sales are down because another component was priced through the roof. Would you buy your pound of flour to make your yearly holiday cake if suddenly eggs cost $45.00 for a dozen (exaggeration of course). But really, these aren’t necessarily complimentary goods (hot dogs to buns) but they are often purchased together whether it be by a PC OEM or a hobbyist.
Posted on Jan 25, 2012 | 5:06 AM EST reply Recommend (1) Flag actions
…….Taking a look at the comments here, there’s a lot of senseless, stupid images that people are embedding. It’s honestly messing up the comments section. The Verge comments section isn’t 4chan. I really hope images are disabled.
Posted on Jan 25, 2012 | 5:36 AM EST reply Recommend (1) Flag actions
Ah come on man. All text makes for dull comment threads.
Posted on Jan 25, 2012 | 10:15 AM EST reply Recommend (1) Flag actions
Seriously? What are you, 10 years old? If you want to look at pictures, hit up your local bookstore and buy a children’s picture book, This is the comments section of what is purportedly a tech website, if you need pictures to keep you interested then just leave. It’s not like you have anything to contribute in the first place.
Posted on Jan 26, 2012 | 8:13 AM EST reply Recommend Flag actions
de-ja-vu, I could swear someone just said exactly that.
Posted on Jan 25, 2012 | 12:27 PM EST reply Recommend (1) Flag actions
There is also the whole, tablet, laptop,/netbook/ultra book thing out these last years which don’t really need discrete gpus… For that matter phones can do a lot of the basic browsing and email, who needs a new computer?
Still I can provide one possible (with unknown actual probability) reasoning to this:
Prebuilt PC’s are more likely to have embedded graphic solution then home built PC’s.
Hard drive prices go up making home built pc’s more expensive
Prebuilt PC Manufactures like Dell, HP, etc have stockpiles of hard drives so they can weather out the storm with lower prices.
Prebuilt PC’s are more economical then home built so people go for pre built, less discrete gpus used.
Personally I run sli, so I think my quota for gpu’s is covered.
Posted on Jan 25, 2012 | 11:59 AM EST reply Recommend Flag actions
Shouldn’t they blame the shortage of 1 TeraWatt power supplies?
It seems every high end graphics card requires a whole lot in the power department and take way too much space. The only amazing thing is that the price of the cards isn’t excessive when compared to CPUs.
Posted on Jan 25, 2012 | 6:19 PM EST reply Recommend Flag actions
Watching nVidia the little bit that I do, I have a hard time understanding their various business lines. How much revenue growth are they losing out from the apparent slowdown of high-end Android adoption? (What fraction of that market do Tegras go into?)
People supposedly thought they were hopping when the Mac data came out. But new Mac laptops don’t seem to generally use their GPU chips; are they going into iMacs? For that matter, how much of their revenue is tied to new PC manufacturing (which apparently took a big hit in 2011 if you strip out Macs), an dhow much into after-market, high-end boards for gaming crazies?
"Inquiring Minds Want to Know!" ®
Posted on Jan 25, 2012 | 8:22 PM EST reply Recommend (1) Flag actions
The dog ate my homework. No, really.
Posted on Jan 25, 2012 | 8:32 PM EST reply Recommend (1) Flag actions
Hmm, funny. Intel didn’t seem to have problems.
:D
Posted on Jan 25, 2012 | 9:40 PM EST via mobile reply Recommend Flag actions
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