Graphics processing Unit, popularly known as GPU is a computer chip that performs rapid mathematical calculations and renders graphics and images as an output. Let us know “Why Are GPU Prices So High?”
GPUs are used mainly for professional and personal computing activities
Let us dig into “Why Are GPU Prices So High?”, They are designed in such a way that they process several pieces of data simultaneously and transform them into useful tools for video editing, gaming applications, and machine learning. They can be integrated into a computer’s Central Processing Unit or as a discrete hardware unit.
The use of GPUs has evolved over the years and this has resulted in a skyrocketing increase in price.
If you’re wondering Why Are GPU Prices So High?, you’d get your question answered in this article.
Why Are GPU Prices So High? : Reasons
From time immemorial the price of Graphics Processing Units GPU has always been on the high side, recently we’ve witnessed another increase in the prices of these GPUs which has left questions in the hearts of users. The high price of GPU is not far from the following reasons.
Shortage of Semiconductor Chip
Chip shortage is one of the biggest reasons behind the pricey nature of GPUs.
Due to the Covid 19 Pandemic, shipping, and other logistics-related issues, the supply of Semiconductor Chips to meet the demands of manufacturers has been on a low level.
With the poor circulation of chips, the production of GPUs is stalled or impeded.
Also, the chip is not used for the first time production of GPUs alone, other devices like laptops, smartphones, video game consoles, and aircraft also make use of chips.
GPUs are expensive because the demands for the chips used for production are high and circulation is minimal.
Scalpers
Some individuals and companies take advantage of the shortage in the production and supply of GPUs to buy as much supply of GPUs as they can or need for personal use.
They end up putting up the remainder of the GPUs they bought online for sale at a highly inflated price all in a bid to make a quick profit for themselves.
People who couldn’t buy these GPUs earlier as a result of the activities of the scalpers are forced to buy them at a high price.
Covid 19
The covid 19 pandemic also contributed to the high prices of GPUs.
The lockdown forced a lot of people into working from home and looking for alternate ways of entertaining themselves indoors, this increased the use of laptops, smartphones, video gaming consoles, and tablets.
All these devices use a semiconductor chip.
Cryptocurrency Miners
Cryptocurrencies like BNB, Bitcoin, and Ethereum have become accepted and more mainstream in the past few years.
The validation of Cryptocurrency transactions is dependent on crypto miners.
The increase in demand for miners has resulted in more people mining for profit.
To mine cryptocurrency, there is a high demand for computing power, and this is provided mainly by GPUs.
Cryptocurrency mining done by a large number of people consume thousands of GPUs at once.
This high usage of GPUs is another reason behind the high prices.
Blockchain
It’s a general fact that cryptocurrency thrives on blockchain technology.
As technology advances daily and attracts more consumers, other establishments and businesses are beginning to embrace blockchain technology for a more visible and efficient transactions.
This increase in the usage of blockchain technology results in high demand for GPUs that can handle and validate transactions, which further leads to a hike in the prices of GPUs
Supply Chain and Tariff
This reason behind the high price of GPUs is also linked to the Covid 19 pandemic.
The covid 19 lockdown led to a shutdown of the global supply chain.
Factories around the world were forced to lockdown coupled with an increase in the demand for shipping. The prices of most items skyrocketed as an aftermath of which GPUs are one.
Even after the lockdown ended and some factories reopened, the supply chain challenge lingers.
A tariff, on the other hand, is a policy that prevents a company from selling its products (Chips) in another country.
When a consumer eventually finds a way of buying the said product, he does that at an expensive rate.
The tariff charges attached to the procurement of computer parts imported from China also contribute to the high price of GPUs.
Improved Spec
The graphic cards in vogue today are far better in quality and spec when compared to the ones produced in previous years.
Improvement in the quality of these GPUs requires high-ended and quality technology materials to be used for production.
These materials are not free, they are quite expensive and capital-intensive.
When producers calculate the cost of production, it is usually on the high side and for the sake of profit, the price of the GPU is increased.
Brands
The more influential and popular the brand is, the higher the prices of GPUs they produce.
These brands take advantage of the reputation and acceptance they have from computers and game enthusiasts to make their GPUs expensive.
Their prices are usually higher than their unpopular competitors.
Because GPUs are very important to gamers and computer users they wouldn’t mind paying an extra fee to buy from a brand they trust rather than pay less for a brand they are unfamiliar with.
Increased spending on Goods
This reason is closely tied to Covid 19 and irregularities in Shipping.
Since the pandemic, we’ve witnessed a hike in e-commerce. Most people switched to buying goods online and because most of these online platforms have their factories located outside the country, shipping in products takes time. This delayed the arrival of GPUs and the few sellers with GPUs resorted to increasing the prices since they have no idea when the ships will arrive.
Short life span
Most GPUs do not last long.
The GPU of most internet users and gamers is constantly in use. Just like every other electronic device, the more you use it, the quicker it deteriorates and becomes weak. When the use of a graphics card exceeds its recommended performance limit, it gives it a short life span.
Another reason why GPUs have a short life span is that their manufacturers are always working on producing new models. Once a new model has been released the old one becomes obsolete.
This short life span of GPUs increases their prices because demand for the latest models is constant and every latest model comes at a higher price than the previous.
Will the high Price of GPUs reduce anytime?
It is natural to inquire if and when the prices of GPUs will decrease, however, all the reasons behind the high price of GPUs are not likely to disappear anytime soon and so there’s no assurance of the prices being stabilized.
How To Install a GPU?
When you eventually find a budget-friendly GPU that you can use, the following installation guidelines will put you through.
Confirm Compatibility
The first thing an individual should do when buying or installing a GPU on their device is to check its compatibility with their current system setup.
Also one should ensure that the supply of power available on their device can manage the additional power that is drawn from the new GPU.
Put off everything
Put off the power to the entire setup of the device and disconnect every cable to free the tower.
Remove the External Cover
Remove the screw of the external cover to expose the interior of the computer.
Locate the old GPU
it is important to locate the old GPU you intend to replace.
Remove the GPU’s Screw
loosen the screw of the GPU and keep them safe for later use
Disconnect the GPU’s power
some GPUs have separate power connections, if it does, unplug them.
Remove the old GPU
the next step to take is to remove the GPU from the PCI-E slot. It is located at the base of the GPU. Depending on the computer’s layout, you can either push the tab down to the side to be able to remove the old GPU. Be careful when removing the GPU, do not apply force to it.
Insert the New GPU
Insert the new GPU into the PCI-E slot you earlier removed the old GPU from, and ensure that the tab clicks into place.
After that replace the screw that was earlier loosened to fasten the card to the housing
Plug In the Power connection that was disconnected earlier Double-check the connection to confirm that everything is in place.Replace the side panel to its original position and fasten it with the screws Power up your device. Install the appropriate Drivers
Conclusion
Now we have learnt “Why Are GPU Prices So High?” Although the prices of GPUs are extremely high, their importance in the life of every computer user cannot be overemphasized.
It is important to find a GPU with a price that suits your budget, to enjoy seamless use of your device.
Frequently Asked Questions
- Are GPUs and CPUs the same thing?
No, they are not the same thing.
What is the difference between GPU and CPU?
GPUs are used to quickly render high-resolution images and video. While CPUs are used to respond to and process the basic instructions that drive a computer.
