Two weeks ago AMD announced the launch of its much anticipated HD 5800 graphics card series.
In conjunction with the international release of the new GPU, AMD SA announced that South Africans would be receiving the card shortly, and at a price which came as a pleasant surprise to many.
The recommended retail price (RRP) provided for the HD 5870 was R3999, and the HD 5850 was pegged at R2699. For a high-end card that easily outperforms Nvidia’s more expensive GTX 285 (R4400) and includes DX11 support, at R4000 the HD 5870 offers exceptional high-end value. While we have not reviewed the HD 5850 yet, we are anticipating unparalleled performance in its recommended price range.
USA pricing SA RRP Local markup
HD 5870 $400 (R3000) R 3999 R1000 (25%)
HD 5850 $300 (R2250) R 2699 R450 (16%)
Unfortunately, following the launch of the HD 5870, there has been no sign of the recommended R3999 price tag, with XFX units selling at rAge for around R5400, and others hovering at a similar price point.
Prophecy.co.za told MyGaming that in order to sell their cheapest HD 5870 at R3999, they would have to sell it at a cost minus VAT. At this stage it appeared as though AMD had either given an unrealistic pricing estimate, or the distributors were inflating the price.
MyGaming took the matter up with AMD regional head Jaco Laubscher, who explained to MyGaming that the problem is related to low international stock levels.
International news sites have been reporting HD 5870 and HD 5850 shortages since the cards launched in September. This means that local importers have only been able to order low quantities of the product, and this in turn has driven up the per-unit import shipping costs.
Laubscher had also heard reports of some retailers deliberately inflating the price in order to profit off the limited availability of the card. Some retailers are only receiving five of the cards and are therefore increasing the price knowing that due to their rarity, some consumers will pay a premium. This is a policy which Laubscher has openly condemned but ultimately can do little to prevent.
The *cheapest HD 5870 available in SA was through Prophecy, who was selling the 1GB Sapphire edition for R4554 until they ran out of stock yesterday. A Prophecy representative ensured MyGaming that the retailer is selling the HD 5870s at the lowest price point that they can whilst still maintaining profitability.
As international stock yields increase, we can expect more HD 5870s to come into the country. As soon as distributors can start placing larger orders, we can expect the HD 5870 to come down to its recommended retail price of R3999.
*Update
LandmarkPC is selling the Club 3D HD 5870 for R3902, making it the cheapest HD 5870 in SA.
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