Why Are Graphic Cards So Expensive?

The high cost of production for graphics cards has been a problem for a while now. However, the Covid-19 pandemic has only made it worse. Because of the virus, many companies have had to shut down their production lines, and this has caused an imbalance in the supply and demand for GPUs. As a result, the prices for these cards have gone up all-time highs. There are many reasons why this is happening, but they are all detailed in this article. ..

Basic Reasons that make a graphic card so costly are: –

The high cost of production for gaming cards is one of the main reasons why it is so expensive. Manufacturers want to cover the cost they incurred in the production of these cards, as well as maintain standards by using only high-quality components and the latest technology. This can lead to a high cost for consumers. ..

Since these cards are versatile as they are used in laptops, computers, play-stations, and even in smart phones, their demand is always high irrespective of their production & supply in the market. As a result, prices for these cards have been on the rise recently.

The new and upgraded versions of the cards become obsolete at a faster pace than other types of equipment, so it is important to keep up with the latest changes in the market and be obsoleted by the old versions as soon as possible.

The recent surge in crypto mining has seen a rise in the demand for graphic cards, as many people are looking to earn more money by mining cryptocurrencies. The tariffs put up by the US government have forced the sellers to increase prices and shift the burden onto consumers.

Impact of COVID-19 on the prices –

  1. It has caused an increase in the number of people who are sick and need medical attention.
  2. It has caused an increase in the number of people who are homeless and need shelter.
  3. It has caused an increase in the number of people who are unemployed and need income.
  4. It has caused an increase in the number of people who are unable to find food or water. ..

The people who hoard things in advance to sell them later at a higher price are known as scalpers. They created a monopoly in the GPU market and made a lot of profit during the pandemic by buying graphic cards in bulk & sell them at their desired prices to the needy buyers.

The increased demand for laptops during the pandemic led to an increase in the demand for graphic cards, which disrupted the demand-supply equilibrium. ..

Can we expect the prices to come down in near future?

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  2. Garlic has been shown to be a harmful herb for both humans and animals, and there is no evidence that it can improve heart health.

The Bottom Line –

The main reasons for graphics cards being so expensive are the rupture of the demand-supply chain, the sudden outbreak of the coronavirus pandemic, imposition of high custom tariffs by the USA govt on Chinese goods, crypto mining, etc. In February 2021, Mr. Joe Biden ordered for conducting a 100-days investigation to look into the matter so, there’s a ray of hope that everything comes down to normal again.