A graphics card is a fundamental part of a computer that functions different kinds of integral jobs with being connected with the motherboard and the computer. Specifically, it is very crucial to get a fantastic and precise image, to accomplish better editing of videos, and to play a great performance in a video game.
But it is a disappointing matter to say that almost all the most top graphics card industries of the world like Nvidia, AMD, ASUS, and EVGA have increased the price of the graphics cards tremendously. Nowadays, their graphics cards are very difficult to find and nearly impossible to buy at a reasonable price.
In addition, these cards which are found in the market demand a higher cost than the previous price tag. For instance, the price of Asus s ROG Strix 24GB GeForce RTX 3070 was $500, but now the price is almost $800. Similarly, another card ROG Strix GeForce RTX 3090 was available at $1,500, but now it goes for more than $2,100.
Hence, the price of graphics cards is apparently very expensive. And behind this, there are dominant factors that impact the market price of graphics cards. Therefore, I’m here to find out some crucial aspects for which the price is high and ridiculous.
The Reasons Why graphics cards are so expensive:
Based on studies and research on graphics cards, some reasons are found out that causes them to be very expensive.
The leading reason for which graphics cards are so expensive is the rarity. Whether you are looking for a next-gen graphics card or an older one to buy, it is hard to get your hands on a new one at the right moment as it will take a long time to manage.
Generally, scarcity is happening due to massive demand around the world. But what is more noteworthy is the limited exposition of cards. And it is because of the global chip shortage. That means a certain type of semiconductor chips are used in different kinds of equipment from computers to planes. In particular, one of the compulsory components of graphics cards is semiconductor chips. Since these chips are in shortage, it has been hampering the massive production of graphics cards. As a result, a clear bustle is seen in the graphics cards market that increases the price more than average.
The popularity of Gaming:
You should know that gaming has now been globally popular and it is an ever-growing industry. People of all ages are apt to gaming on PC, laptops, or mobile phones. Specifically, video games are more interesting and exciting. So, to get an excellent gaming experience, you must have a computer that holds a very high-performing graphics card as it is the heart of a gaming PC.
Having a computer with a high-quality graphics card will provide you an enjoyable and amusing gaming experience. Because of the good graphics card, you can have a clearer and sharper view while watching or playing games on the PC.
Hence, video games lovers always search for the best and highest graphics cards for their computers. So, of course, it is a facilitative matter and green signal for the graphics card companies that it is high time to sell graphics cards at a more expensive price tag.
Worldwide demand and supply:
As I said earlier, graphics cards are globally in high demand. People around the world are getting interested in video gaming more than in the old ages, whether out of leisure time or enjoying it. Therefore, a computer to play video games just needs a better graphics card to deliver a proper quality of gaming.
But it is not only video games that increase the worldwide demand for graphics cards. This very component is used also in ray tracing and rendering images to the display. Due to multi-functional uses, it is widely desirable and a necessary device. It is seen that some of the latest cards were sold immediately after being brought out in the market. And as a result, there has been a shortage of cards seen globally.
Hence, the industry of graphics cards is expanding and going to grow because of the worldwide demand and abundant supply. So, there is a rise in the pricing of graphics cards.
The more advanced, the more expensive. It is a universal matter. Each year, every technical device or machine comes with new features and advanced technologies. Therefore, one of the most striking reasons why graphics cards are so expensive is that new cards are much better, higher, and improved than many expected. The performance is augmented from 50% to 60% over the previous generation cards.
Making a product technologically more advanced and superior means taking much toil and painstaking processes. To manufacture a new graphics card, manufacturers are to get creative hard work to actualize their thought into a successful output without compromising the quality or the quantity of their product. As a result, a new-gen card is harder and more laborious to be produced than the previous generations.
New graphics cards are built with developed materials and remastered designs. It takes a long time and thus it is time-consuming. Besides, different types of challenging jobs are to be accomplished very accurately. These facts again matter in the high manufacturing cost. So, it is a conceivable thing that better quality equates to a higher price for any device. Thus, graphics cards are not an exception. They also demand a superfluous amount of cost as they are improved and inscribed with better quality.
For example, some recent graphics cards from NVIDIA and AMD have created a new boundary in the graphics cards history. They were designed with high-quality graphics at historically large resolutions like 4K which was formerly 1080p. Undoubtedly, it is a big step in the history of graphics cards.
One of the most remarkable reasons is cryptocurrency. It is a big and prominent problem for which the price of graphics cards is highly ridiculous. It is seen that graphics cards become unfairly scarce whenever cryptocurrency prices boom, and it was noticed in 2013 and 2017.
When the market of bitcoin goes into an explosion, digital currency mining becomes a trendy and profitable investment. So, mining rigs based on GPUs increases the value of graphics cards. Common and consumer’s used graphics cards can not be used to mine bitcoin. In this case, high-quality cards are used for faster and effective mining. Therefore, crypto miners buy graphics cards, and eventually, the cards go into high demand.
It is a noteworthy matter that crypto mining requires at least 4GB of video RAM which is included on a graphics card. Hence, the cards with this capability are widely sought-after. Besides, some miners prefer cards with 6 to 8 GB Ram for better performance and longevity. Thus, it further strengthens the GPU shortage. As a result, the already extravagant cost of the graphics cards becomes more additional and outrageous.
Scalpers are other culprits who look for their financial gain by acting various kinds of tactics to meet their goals. They buy several types of highly valuable commodities and resell them at a hefty price for a quick profit. Consequently, graphics cards are one of the dominant goods for them.
Scalpers work consistently and systematically. They firstly purchase graphics cards as early as possible whenever cards are available in the market. By doing this, they create an artificial shortage in the market. Thus, when products disappear and customers search for them desperately, scalpers expose their cards at a ridiculous price tag. Being helpless when the card seems essential to buy, customers bring it with a tremendous amount of money.
In this way, scalpers are responsible for creating a synthetic scarcity and making graphics cards so desirable to customers. Eventually, it leads the price to be more expensive and indulgent.
US Tariffs on Imports:
A new tariff was passed during the Trump Administration in the USA that imposed a 25% tax on Chinese imports including computer components such as graphics cards and motherboards. At last, the tariffs took effect on December 31, 2020.
As a result of this new tariff, graphics cards become expensive in the USA and some other certain regions. Immediately, most of the graphics cards of the world-famous brands such as ASUS, EVGA, Zotac, etc. went up by around $100 to $300 depending on the model.
The COVID-19 Pandemic:
At present, the whole world is affected by the Covid-19 virus. For this reason, everything is overcast and the result is seen everywhere. Following this, the market for graphics cards is also in danger. This pandemic creates troubles in different ways.
Predominantly, people are forced to stay at home due to the pandemic. So, they are apt to have personal devices and electronics. Being confined in walls, they are using mobile phones, laptops, and other social sites whether for work or just entertainment. Eventually, the demand for graphics cards rises higher than in the previous situation.
Another fundamental effect of Covid-19 is the lockdown procedure, for which the entire world is isolated. As a result, one area is disconnected from another area, and from one country to another. This affects tremendously the imports and exports of the goods from one country to another as the international shipping among the countries was discontinued for a while.
Therefore, there is a common shortage of the goods and accessories that are to be imported from the other countries. That is why the price of necessary commodities including graphics cards rises severely and it adds a significant cost. Although international shipping is now far better, it doesn’t bring regularity to the market yet. So, inconsistency in the graphics cards market is still present.
Hence, these are the main causes for which the price of graphics cards is very expensive. Worldwide demand for graphics cards, their rarity, the popularity of gaming, mischief of miners and scalpers, quality of materials, all increase the value of graphics cards. As a result, a superfluous amount of cost seems to be inevitable. Thus, the price of graphics cards is somehow exorbitant.
Frequently Asked Questions:
Q1: Are expensive graphics cards worth it?
The graphics card is a mandatory part of a computer that produces the image you see on the monitor. And it does it by converting the information into signals which a monitor can understand. To get a smoother and better picture, a graphics card should be well-functioned. Besides, it is an essential part of devices for video editors to have a satisfactory and beautiful video. Moreover, who love playing video games, having a standard-quality graphics card is fundamental for them.
Concerning these factors, it can be said that a good graphics card is an indispensable part of a PC. So, if you look for a quality graphics card, you must spend a considerable amount of money. An expensive graphics card alone comes with top-notch components and is capable of providing desirable service.
Q2: Do you need an expensive graphics card?
Not always. Expensive cards are worth the money and cheap ones are not, that is not true all the time. Yes, expensive graphics cards are indeed more serviceable and efficient than cheap ones.
But, you should remember that some other graphics cards within an affordable amount of money are there for you. For instance, you can buy the Nvidia GTX 1660 or the GTX 1660 Ti, cheap at the market, that are very popular and can be suitable for your work. Therefore, take into consideration that you should not buy an expensive card always, instead, you may have one at a reasonable price on account of the demand for your computer.
Q3: What is the most expensive graphics card for gaming?
At present, the price of all kinds of graphics cards is more than ever. However, among the expensive cards for gaming, NVIDIA Titan RTX can be mentioned as the most expensive one found in the market.
This card is manufactured with some special specifications that prosper the quality of the card and it can deliver a better gaming experience. Praiseworthy for exceptional speed, this card has a massive 24GB GDDR6 memory with a speed of 7,000 MHz, and a high memory bandwidth of about 672GB per second. Crafted in an excellent aluminum case, the card looks light and creates a special appeal to customers.
However, in terms of price this card carries an outrageous amount of cost. The amount is nearly $3,000.