GPU Prices Dropping; Time to Upgrade to Optimize Business Apps

Source: nanadua11 from Pixabay

The street prices of GPUs have been dropping since the start of 2022, and in April, they reached their lowest thus far in years. On average, the rates have dropped by 30% since January, by which time the gradual price decrease had already begun. Units like the AMD RX 6900 and Nvidia RTX 3080 Ti can even be purchased for less than their list prices. Best of all, the scarcity of graphics cards, as well as gaming consoles, is starting to become less of a problem these days.

In 2020, a shortage of GPUs occurred due to COVID-19 driving increased demand for electronic gadgets. As such, finding one in stores was a challenge, as some people elected to purchase overpriced units from scalpers. The scarcity led to a spike in the street prices of GPUs should buyers find them in stores. Many GPUs were being sold for double or even triple the suggested retail price. Meanwhile, in some stores, the technology cannot be obtained as part of a PC, not individually.

To alleviate the situation, US President Joe Biden signed an executive order to review semiconductor supply chains in February 2021. At the time, Chuck Schumer, the US Senate Majority Leader, mentioned in a press conference that “semiconductor manufacturing is a dangerous weak spot in our economy and in our national security, that has to change.”

And change it did over time. Besides tech companies ramping up production, the Trump-imposed tariffs lapsed, which previously imposed a 25% tax on China-made graphics cards. And so, supply started to increase while prices began to plummet. Now, the GPU market is striding its way to pre-pandemic stability.

Business Implications

By definition, a graphics processing unit accelerates the rendering of graphics, images, and interfaces. It increases the amount of data that a computer processes. As such, the GPU plays a huge role in the modern business landscape. After all, frequently used platforms like accounting and project management software are often cloud-based. And features such as dashboards, graphical reports, and automation functionalities rely on GPUs to perform optimally.

The impact of GPUs is more noticeable on the customer side in which speed influences behavior. Without a high-performing processor, websites pull up information slowly, more so with cloud-based software solutions. This comes with serious implications since a mere one-second delay could result in a 16% drop in customer satisfaction. So, making GPUs widely accessible is critical for software developers, their clientele, and their clientele’s customers.

The improved availability of GPUs currently means that developers get to obtain the processor to efficiently produce sophisticated software solutions. In turn, software users won’t experience long delays when using the platforms since GPUs increase their computers’ performance. Similarly, the customer-facing interfaces of retail and sales platforms will generate positive experiences if all of the functionalities work without delays.

Moreover, the increased supply enables sellers to mark down the GPUs. Consumers can obtain these processors for less, so they can apportion a larger share of their budgets to other important aspects. For businesses, they can allocate more funds to  sales and marketing while individual customers can buy games and other personal items. In a nutshell, GPU prices dropping signals a stabilizing market.