Why Graphic Cards Are So Expensive?

Table of Contents

Introduction

Have you ever noticed why graphic cards are so expensive, even from the computer? Although it is a magical component that brings colors to your monitor screens. But it is a mystery for hardcore gamers and professional graphics designers why this critical component of computers is getting so expensive. You are at the right place if you also want to solve the mystery of “why graphic cards are so expensive.” So let’s start reading this article till the end, in which easy-to-understand reasons are explained.

Just imagine the hard work and effort an artist puts into their paintings. This beautiful and eye-catching artwork wonders everyone. And most of the people want them. But they are costly because an artist works day and night on them.

The same is true in the case of graphic cards. These pieces of hardware are the artists of your computers. They bring stunning visuals and graphics to the digital world. If they are not present, the digital world becomes black and white.

But now the question arises: why are graphic cards so expensive? Let’s dive into the reasons that answer all your questions.

The Role of Graphic Cards

Graphic cards are the heart of the digital world. They convert the boring binary data to attractive images and videos. Imagine for a second: What if there were no colors on your computer screens? If you open any game and there are no 3D graphics?

You might leave everything. Is it so? Yes, sure. Being a human, we cannot understand the binary language that a computer can understand. We need a visual representation to acknowledge the robotic language.

That’s why graphic cards are so crucial in operating computer systems.

High Demand Meets Low Supply

The most important reason graphic cards are so expensive is their high demand. You can’t choose a single field in which graphics cards are used. It can be used in:

Gaming
Video- editing
Renders images
Graphic intensive activities
3D Modeling
Creative production
Artificial intelligence(AI)

These are some essential points that a graphic card can perform. Besides this, many other features are necessary in the digital world. As you know, everything that is in demand has to face scarcity.

It is like a gem for your computer that’s why graphic cards are so expensive. In addition, they are a requirement for those who set up their offices in homes. Moreover, professional designers will shut down their businesses if their PCs lack graphic cards.

The Cost of Research and Development

Developing your graphic card is easy. But it is not a bed of roses. You have to invest a significant amount to buy its components. A single graphic card consists of 4 major components:

A printed Circuit Board(PCB)
Graphics Processing Unit(GPU)
Heat sink and heat pipes
Injection molded shroud

Besides this, it is not a work of an ordinary person. A skilled designer who knows the cutting-edge technology of graphic cards can develop it. This is the reason why graphic cards are so expensive. Thus, its manufacturing costs make its prices skyrocketing.

To increase your information, let’s see the cost price of efficient graphic cards:

ZOTAC Gaming GeForce RTX 3060 = Rs. 85,000
ASUS TUF Gaming GeForce GTX 1660 Super = Rs. 60,000
NVIDIA GeForce RTX 3080 = Rs. 200,000

The Impact of Cryptocurrency Mining

Cryptocurrency mining plays a vital role in increasing the prices of graphic cards. There are many components in a graphic card, and one of them is the processing cores. As you know, miners have to calculate a large amount of data in cryptocurrency mining.

In addition, they have to perform multiple mathematical operations simultaneously. The Processing Cores of Graphic Card enable them to perform these tasks efficiently. With the help of this, the miners can easily do blockchain mining.

Due to the high demand for graphic cards in cryptocurrency mining, the miners buy them in bulk. They store them for their future use, you can also check the latest article on what graphic card is in PS5. Thus, other consumers like gamers and graphic designers have to face the short supply. This is the leading cause why graphic cards are so expensive.

Tariffs and Trade Wars

Tariffs and trade wars are another crucial reason graphic cards are so expensive. International trade tensions are created by a particular government that limits imports. Furthermore, it leads to tariffs on electronic components, including graphic cards.

Moreover, tariffs are taxes that you have to pay. These additional costs add to the graphic card purchasing amount. In addition, if there is a conflict between trading countries, they will stop importing graphic cards. Due to this, the consumers of that particular country need more graphic cards.

The Quest for Cutting-Edge Technology

In today’s world, everyone is in a race. The race is to become more successful and influential than others. But if we talk about technology, this field is continuously advancing.

As time passes, new techniques, as well as new components, are discovered. Similarly, the latest and greatest graphic cards heats up in the technology race. The more latest the graphic card, the more resources are needed.

As we talked about before, there are high rates of graphics components. The new and most excellent graphics cards require more advanced GPU. Due to this, there is an enhancement in the efficiency and performance of computers.

Here are some of the latest graphic cards that give the best results to your monitor screens:

AMD RX 7800 XT
Nvidia RTX 4070
AMD RX 7600
Intel Arc A770
Nvidia RTX 4090

The Influence of Gaming Culture

In the gaming world, many advanced games require high-quality 3D graphics. Thus, a graphic card is required, making you wonder why graphic cards are so expensive. The animated and vibrant graphics of the game you see on your monitor screen are due to the processing of graphic cards.

Due to the high demand for graphic cards in the gaming industry, many other consumers need more. On the other hand, if they hardly get any graphic cards, then it is costly. Thus, gaming culture is another crucial reason graphic cards are so expensive.

The Price of Quality and Performance

Many gamers and professional graphic designers demand high-quality pixels and clear-cut graphics. This can only be possible when your computer has a great graphics card.

Thus, the best quality graphic card requires more advanced components. All these points indirectly affect the retail price of graphic cards. But if you want quality and performance on your monitor screens, you must bear the manufacturing costs.

How Manufacturers Set Prices

In the above discussion, you will notice how the components of graphics affect its overall prices because its manufacturing takes work. So, whenever a manufacturer sets the prices of graphic cards, he always keeps in mind its production costs.

Moreover, market demand and competition are also matters. Thus, to balance all these things might result in the high prices of graphic cards. And being a consumer, you have to face this economic problem.

The Secondary Market Effect

Another critical point why graphic cards are so expensive same why graphic card fan not spinning is the effect of the secondary market. The resale market for graphic cards can also influence retail prices. High demand in the secondary market can increase prices for new units.

Conclusion – Why Graphic Cards Are So Expensive

In a nutshell, graphic cards are costly due to various reasons. In this informative article, you can acknowledge the significant reasons behind the increasing prices of graphic cards, such as tariffs, trade wars, cryptocurrency mining, market demand, and competition.

But you are okay if you invest your money in graphic cards. No doubt the prices are high, but the result that they give is undeniable. They are the most essential part that brings life to your monitor screen.

With the help of this article, you can understand the factors that contribute to the cost of graphic cards. Moreover, you also learn why graphic cards are so in demand and their benefits.

By keeping these things in mind and having a clear idea of why graphic cards are so expensive, you can make decisions that affect the overall view of your computer screen. Whether you want to invest money in graphic cards is up to you. Or you have to use a computer without any images and colours.

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