The most famous 3rd-party graphics card manufacturer is EVGA. The brand is known for its high-quality graphics cards and generous consumer policies. The partnership between the two companies lasted over two decades, but now it's over, and EVGA won't make any more of the graphics cards. It isn't a clean break up.
Cites disrespectful treatment by EVGA.
This is not a financial decision, it is a principled one according to a statement from EVGA. Nvidia has been accused of keeping partners out of the loop on future products and cutting prices without warning.
One of the main issues is that the founder's edition models are more expensive than partners' models. As it needs to cut prices to remain competitive, EVGA lost hundreds of dollars on each RTX 3080, 3090, and 3090 Ti it sold. Manufacturing is only considered by that figure.
The finances are certainly at play. According to Jon Peddie Research, the gross margin for Nvidia has increased year after year while the margin for partner companies has decreased. Jon Peddie Research thinks that the gross margin for the entire business of Nvidia will be about 65%. Increasing costs for production, R&D, and marketing are to blame for declining margins. Low margins on volume are no longer appealing according to Jon Peddie Research.
EVGA's story was not accepted by the gaming community. The company might have gotten burned by the sudden decline in mining if they had ordered too many graphics cards. The company lost money in the six-digit range when it was using the RTX 20-series.
Andrew Han might have a reason for ending the partnership. Han, who is in his 60s and has been CEO since EVGA was founded in 2000, wants to spend more time with his family as he approaches retirement and feels that Nvidia's attitude is no longer worth the trouble, according to a report.
The company says it will continue to operate its other ventures despite the fact that the majority of its revenue is derived from graphics. Power supplies make up 20% of the company's revenue and have four times the gross margin of the graphics business. The loss of the vast majority of revenue is still problematic.
Han denied selling EVGA. The company appears to be in good shape. The CEO didn't want to deprecate EVGA's reputation by selling it to another company.
The company has made it clear that it won't be making any graphics cards in the future. The CEO of EVGA may have personal reasons for not wanting to work with other companies, like the reasons he had for ending his partnership with Nvidia.
As long as supplies last, the company will honor warranty and RMAs. It's not certain how easy it will be for EVGA to uphold its warranties, whether or not the company is willing, since its supply of the 30-series cards will run out by the end of the year.
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