Chinese sellers are making a profit by buying PC builds that include NVIDIA GeForce RTX 4090 GPUs, removing the cards, and selling them online.
The demand for NVIDIA’s GeForce RTX 4090 GPU remains high in China, and it appears that Chinese dealers have discovered a method to benefit from these buyers.
NVIDIA GeForce RTX 4090 graphics processing units (GPUs) are prohibited in China, but sellers have discovered a method to sustain their profitability by purchasing fully assembled personal computer systems.
The NVIDIA GeForce RTX 4090 GPU was one of the goods subject to export control restrictions and prohibited from being sold in China. This was a significant blow to Chinese customers and gamers, particularly the AI business, which was using these GPUs as a substitute for the pricier options from NVIDIA, such their H100 or A100 chips (which are also subject to export controls). This resulted in NVIDIA launching the GeForce RTX 4090D, a somewhat reduced version, at the identical price as the RTX 4090 for China.
However, it seems that even though NVIDIA has released the GeForce RTX 4090D, there is still a high demand for the original RTX 4090 GPU and some vendors are using this situation. There are reports that the sales of the GeForce RTX 4090 GPUs are experiencing a significant rise in Asian regions like Taiwan, South Korea, Singapore, Vietnam, and others, despite their higher price. The primary objective is to sell these GPUs for a financial gain in China, as clients are prepared to pay an additional amount for the complete 4090 GPU.
However, many stores in these areas are aware that these GPUs are being transferred to the AI sector. As a result, they have begun selling the NVIDIA GeForce RTX 4090 GPUs with pre-built gaming systems to prevent resellers from generating excessive profits. However, that is not functioning optimally. According to MyDrivers, Chinese dealers are purchasing these ready-made computers. Even though the buyer pays the entire price of the system, the sellers still manage to make money by selling the RTX 4090 GPUs separately.
An example of this occurred when a purchaser acquired 20 pre-assembled systems from a PC reseller situated in Taipei, Taiwan. The entire system using the NVIDIA GeForce RTX 4090 GPU has a price tag of approximately 32,000 RMB or $4450 US. That is over twice the current costs of the 4090 in the US and 2.8 times higher than the $1599 US manufacturer’s suggested retail price. Nevertheless, these sellers are targeting AI consumers who desire maximum AI capabilities, resulting in significant revenues for these Chinese merchants despite incurring substantial expenses.
Prices of the NVIDIA GeForce RTX 4090 GPU in the United States. Picture Credit: Newegg
The price of the graphics card has been increasing in the market, and it is no longer available at the manufacturer’s suggested retail price (MSRP). However, other RTX 40 series cards can still be found at or below MSRP. It seems as if shops are also capitalising on the entire scenario with the ban of RTX 4090 in China. The reception of the GeForce RTX 4090D in China is uncertain, but for gamers, it is a card that can be purchased at a price similar to its MSRP in China, which is 12,999 RMB.
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