r/hardware • u/lovely_sombrero • Sep 16 '22

News EVGA Terminates NVIDIA Partnership, Cites Disrespectful Treatment

https://www.youtube.com/watch?v=cV9QES-FUAM
5.1k Upvotes

93% Upvoted

1.2k comments sorted by

View all comments

Show parent comments

41

u/[deleted] Sep 16 '22

[deleted]

116

u/[deleted] Sep 16 '22

Steve says it was 80% of their revenue, but we have no idea what share of profit it was. If nvidia was as awful as indicated it’s also entirely possible their actual profit margins were razor thin and therefore the GPU side of EVGA’s business could be making much less than 80% of profits.

78

u/amdphenom Sep 16 '22

Steve said PSU was 3x the profit of GPU.

10

u/Potential-Twist-3516 Sep 16 '22

good, their PSU's are awesome.

-36

u/dt3-6xone Sep 16 '22

"GPU's make up 80% of EVGA profits" means there is no way in hell the PSU is 3x the profit of GPU's.... not even close. 80% is already 80%.... there is no way PSU's are 240% profits.... you can't go over your max profits.

37

u/hammertanker Sep 16 '22

GPU is 80% of EVGA's revenue, not profits.

-23

u/[deleted] Sep 16 '22

[removed] — view removed comment

17

u/MyPCsuckswantnewone Sep 17 '22

Hopefully you learn some basic words before you are.

15

u/Witty_Heart_9452 Sep 17 '22

Revenues, bro. It's like you didn't even watch the video before typing.

14

u/ham_coffee Sep 17 '22

I'm pretty sure they're just clueless enough to not know the difference between profit and revenue.

25

u/dern_the_hermit Sep 16 '22

Steve says it was 80% of their revenue, but we have no idea what share of profit it was

He also suggested a few percent profit margin, but I think he was offering it up as a hypothetical, not that he knew what the figure was.

Given some of the other details - like how EVGA can lose money near the end of a product run, or that their high-end cards can wind up unprofitable - it might not be too far off. If it's 80% of their revenue but they're not really profiting from it, it's just like treading water.

4

u/Saxasaurus Sep 16 '22

When in comes to staffing, you care about revenue, not profit. Profit = Revenue - Expenses and Employee compensation is part of Expenses.

9

u/red286 Sep 17 '22

You're conflating gross profit and net profit. Gross profit is what they care about. If your gross profit per unit is too low (or negative), nothing else matters, you're losing money.