UPDATE 1: Adding background information.
UPDATE 2: Adding further clarifications.
After making numerous complains about supplies of high-end graphics processors by ATI Technologies, its main add-in graphics cards partner Sapphire Technologies said that it could use graphics chips from the rival Nvidia Corp. some day to fulfill the demand for Sapphire-branded graphics cards.
“I am not saying that directly but a lot of our customers, OEMs and retailers, have asked for both NVIDIA and ATI SKUs. Think of it like this, there are two types of people who will want a German car, some go for BMW, some go for Mercedes – the best thing to do is make sure both are covered. When the time is right, we may do it,” said K D Au, chief executive of Sapphire Technology, the No. 1 producer of add-in-cards with ATI Radeon chips, in an interview with Hexus.net web-site.
After the news-story has been published, Sapphire was rather quick to clarify the statements of its chief executive and say that Sapphire Technologies has no plans to build Nvidia-based solutions at this moment.
"Now is not 'the right time' - and we currently have no plans to change from being dedicated to ATI graphics solutions," said Bill Donnelly, a spokesman for Sapphire, emphasizing that "it is quite clear in the original context" that Mr. Au was saying the company would only change its position if market forces were such that it made sound business sense.
Mr. Au said that his company was growing so rapidly that securing enough graphics processors was crucial to fulfill the demand of its clients, among which are large computer vendors, such as Fujitsu Siemens Computers, Medion and NEC. He indicated that having two suppliers of graphics chips ensures not only a more flexible business model in terms of volume, but also guarantees that the demand for the Sapphire-branded products is always high.
“Take our business, our primary business is producing and selling discrete graphics boards based on ATI GPUs. If the market trends aren't in ATI’s favour and NVIDIA is ahead then this, obviously, can hurt us. Also, if ATI can’t deliver in volume this hurts us, too. The best thing which we can do is make sure we aren't dependant on a single supplier or SKU,” Mr. Au added.
Sapphire Technologies’ monthly video board production capacity can reach a lofty 1.8 million units and often topples this landmark figure. So far the company has only produced ATI-based boards.
Comments currently:
4
Discussion started: 04/08/06 02:41:18 PM
Latest comment: 04/10/06 08:09:08 PM
[1-4]
1.
Another blow to ATI
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Posted by: donniesd

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Date: 04/08/06 02:41:18 PM]
2.
Or it is good for the vendors to sell whatever card at the moment happens to be hot in the market. Keeping the sellers active by feeding them chips to sell keeps the market hopping, and the sellers healthy. Don't think either company is doing poorly, despite so many rumour mills to one or the other.
Sapphire makes a good card. Probably that counts for as much as what chip lies within that card.
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Posted by: Anemone

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Date: 04/08/06 06:59:03 PM]
3.
This guy is obviously a moron to use that idiotic analogy about German cars. Volkswagen/Audi easily outsells Mercedes and BMW, and, did he forget about that maker from Stuttgart known as Porsche? No one ever wanted a Porsche, right? When they start off with something so stupid, it's really hard to take anything they say afterwards too seriously, but normally when they whine like women in public, it is to get more attention from their partner. In this case, it is probably to put pressure on ATI to give them better supplies by making this threat. In reality, Sapphire probably has no interest in entering that crowded market, after having been in a much easier one with ATI based cards. If you want an ATI GPU, Sapphire is the second most popular brand (after ATI themselves), and generally offer very good priced card. Thus they have a firm and well-understood position in that market, and their main competitor wants them to succeed and is not interested in knocking them out of business. In the Nvidia camp, they are not known (since they have not been in it), and it is very crowded by competitors that do want to knock them out of business. I doubt they'll find an identity in that market even minimally resembling the importance they do in the ATI market, and the Nvidia market is currently smaller anyway. So, the point is what?
Like Dell, they've done pretty well staying with one vendor, and while they like to play the role of mistreated mistress from time to time, their results speak for themselves. This sounds like a ploy to get ATI to give them more chips, and may indicate that ATI is hogging processors for their own card to the detriment of their partner. This could easily be a reminder that ATI has something to lose if the relationship continues to go sour, although I think ATI will see through it pretty easily. Sapphire/Nvidia does not make a whole lot of sense, unless Sapphire has no choice because of ATI's policy towards them.
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Posted by: TA152H

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Date: 04/10/06 03:32:27 AM]
4.
ati sux
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Posted by: nvidia fan

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Date: 04/10/06 08:09:08 PM]
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