NVIDIA to Limit Production of GeForce RTX 4070 After Poor Sales

The NVIDIA GeForce RTX 4070 is based on Ada Lovelace architecture, paired with the AD104 GPU. The graphics card features DLSS3 and AV1 encoding support. Its average TDP was reported to be 186W. This was the optimum choice for gamers with newer RT and Tensor cores. 

According to Chinese Board Channel Forums, NVIDIA has informed its AICs that it will cut off the supply for its GeForce RTX 4070 GPU by one month. This is after the market response failed to meet the company’s expectations. 

NVIDIA GeForce RTX 4070

This was surprising since the RTX 4070 performed well during its initial launch days. The card was released on April 13th, and even after a week, only a little of its inventory has been cleared out. Only the reference-priced cards seem to be making a sale. 

The premium, custom models of the RTX 4070 are not a popular choice among customers since they are priced similarly to the RTX 4070 Ti. With an improved performance boost, it only makes sense to opt for the 12GB RTX 4070 Ti with 7680 CUDA cores.

By cutting back on supply, NVIDIA can minimize the potential risk of an oversupply in upstream and downstream supply chains. However, NVIDIA has already pre-booked TSMC’s 4N wafers for its RTX 40 series. 

So, in the event that NVIDIA requires an additional stock of the RTX 4070, it can lobby for it. It is not the most likely scenario since NVIDIA’s primary goal is to finish off the remaining GeForce RTX 30 inventory. 

Chinese Board Channel Forums:

“It is expected that after the announcement of NVIDIA RTX 4070 products, the sales are not good, and the price is even a little bit broken. Countermeasures have been discussed internally. The first eve of the book is to limit the supply of the RTX 4070 series and maintain a stable price system.”

The RTX 4070 is faring well in Germany with great sales numbers. At Newegg US, the graphics card is still available in stock at MSRP. However, since it’s still in its initial phases post-launch, we can’t say anything for sure.  

The RTX 4070 was the smallest performance jump over its 80-class predecessor, the RTX 3070. This could be one of the reasons why buyers are not choosing the Lovelace-based graphics card. Hopefully, in the coming weeks, we can see a better sales report. 

About Nvidia

NVIDIA Corporation is an American multinational technology company incorporated in Delaware, based in Santa Clara, California. They design graphics processing units (GPUs) for the gaming and professional markets, as well as system on chip units (SoCs) for the mobile computing and automotive market.

Best known for the “GeForce” lines of GPUs, they are a direct competitor to AMD’s “Radeon” series. NVIDIA has also expanded its offerings with its handheld game consoles Shield Portable, Shield Tablet, and Shield Android TV and its cloud gaming service GeForce Now.

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