So, if you’re a gamer, someone looking to increase their device specs, or a crypto-miner; you’re probably wondering: why are GPUs SO expensive? Well, that’s a question on a lot of people’s minds. And, we’ve actually got the 7 answers for you! Keep reading to find them all out!
Also, since we’re on the topic of retail, there’s a lot more to GPUs than just their prices. Find out more about restock timing, the best ones to resell, how to make a profit, and more! All you have to do is click on the button below and you’re GOLDEN!
WHY ARE GPUs SO EXPENSIVE?
1. CHIP SHORTAGES
If you ask anyone: why are GPUs so expensive? The first thing they’re going to say is chip shortages. A lot of this happened around the time that COVID-19 struck and caused global shipping problems. Semiconductor chips are basically the main component of GPUs, and the demand is just way too much. They’re also an essential component in the product of a lot of other electronics like game consoles, smartphones, laptops, and more. So, there just aren’t enough chips to go around!
Therefore, the production of GPUs has become increasingly less over the past few years! This is why every GPU restock features a limited amount of the cards that usually go OOS in a pinch! So, factories are definitely going to need a long time to make up for the shortage and fill the gap!
GPUs are expensive because of chip shortages.
2. HIGH DEMAND
Next, we’ve got the high demand. You are definitely not the only person in the world asking the question: why are GPUs so expensive? In fact, the fact that there are SO many people asking the same question is kinda self-explanatory. In other words, we’re talking about the extremely high demand for graphics cards.
We also contribute this to the pandemic because it is the reason people were under lockdown! The reason why a lot of people started working from home – some still are! People started getting into gaming, working on their consoles, improving their graphics, and so on. All of which required the use of graphics cards!
GPUs are expensive because of high demand.
3. LOW SUPPLY
On the flip side of the coin, with high demand came very low supply. This is another reason on the list of why are GPUs so expensive! Even though most of the factories opened back again across the globe, there’s still a gap in the supply-demand chain. In other words, even with the supply chain picking back up, it’s still a slow take-off! One that isn’t enough to satisfy the growing demand!
GPUs are expensive because of the low supply!
4. ONLINE SHOPPING
And then there’s online shopping! If you’re looking for reasons on why are GPUs so expensive, shopping definitely deserves a high spot on the list! With so many people staying at home and so many stores closing down during quarantine, people resorted to online shopping. They still are! It’s much more convenient.
This ultimately put a lot of pressure on the shipping sector and created a global shipping problem. And so, graphics card faced another issue which is the delay on good due to traffic congestion at ports! Add to that the decrease in labor so fewer workers could actually unload and deliver. All of this together further impacted graphics card pricing.
GPUs are expensive because of traffic congestion at ports due to online shopping.
5. US TARIFFS
Also, another reason on why are GPUs so expensive is US tariffs! China produces a lot of the chip that a graphics card need, and Chine also produces the GPUs themselves. However, in 2019, the US placed a 25% tax on all Chinese goods that had Chinese-produced computer chips. Of course, this includes GPUs! So, naturally, the price of GPUs increased by at least 25%!
The problem is that the consumer ends up buying foreign goods anyway but at higher prices. This is what’s happening with graphics cards, too. Since China produces many of the chips that a GPU uses, they also produce graphics cards.
GPUs are expensive because of high US tariffs!
After that came the miners! It is a pretty obvious reason why are GPUs so expensive: crypto mining! Mining cryptocurrencies using GPUs was already slowly gaining popularity before COVID hit. But, just like anything you could do remotely, it BOOMED during quarantine. This is the process of using computers with high-end graphics cards to mine cryptocurrency.
Also, you should note that those who made it their profession don’t use a single computer! They’ve got what they call FARMS of devices with graphics card mining around the clock. So, miners alone account for a huge chunk of the GPU demand and drive up the prices!
GPUs are expensive because of crypto miners.
Finally, the last reason on this list why are GPUs so expensive: scalpers! So, scalpers are basically resellers – they buy certain products to resell them at a higher price and make a profit. This is a huge phenomenon in a lot of other industries like the sneaker industry or NFTs! It is a legit, full-time business for a lot of individuals out there. And, you can obviously tell from the prices of GPUs on the market!
So, when the graphics card you want is OOS, what else can you do than go to a scalper? And, usually, these people are using some type of shopping bot to grab most of the GPU stock before anyone else can. Therefore, this makes GPUs an exclusive commodity to those who can buy them first!
GPUs are expensive because of SCALPERS!
THUS raising the price and making it even more expensive. Of course, the solution to that would be to endorse in a shopping bot yourself – definitely recommended. If you wanna take a look at the option and get to know a little more about that we got you! You can learn all about avoiding expensive GPU prices and maybe even make some cash while you’re at it. Click here to find out more!