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AMD Radeon graphics cards become unprofitable for sellers in China

AMD Radeon graphics cards become unprofitable for sellers in China

In the Chinese market, some AMD graphics cards are being sold below the recommended retail price. Distributors and retailers are forced to lower prices so much to move stock that it is resulting in losses. According to Channel Gate, the situation is particularly serious with the Radeon RX 7650 GRE model. This is reported by Ixbt.com .

Although the recommended price for this model is 2099 yuan ($310), it is currently selling for around 1740 yuan ($255) including taxes. During promotions, the price drops to 1580–1650 yuan (approximately $235). Additionally, the Radeon RX 9060 XT 8GB and Radeon RX 9070 XT models are also being offered significantly cheaper than their official prices.

Analysts point to a decline in demand in the PC building market as the primary reason for this situation. Interest in building and upgrading gaming PCs at home in China has waned, leaving distributor warehouses filled with unsold components.

Due to supply exceeding demand, sellers are forced to continuously lower prices to clear inventory. Sources indicate that the Chinese market is more sensitive to oversupply than the US or European markets. Experts are concerned that the long-term price decline could negatively impact not only individual sellers but the entire local graphics card market.

However, for buyers, this situation is ideal. If this trend continues, the price drop in China could potentially influence the value of Radeon graphics cards in other countries in the future.

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