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Rumors also say NVIDIA will report another quarterly loss

NVIDIA is certainly on the skids financially thanks to several different factors. The company is traditionally one of the most profitable in the GPU and chipset business and commonly turns in significantly improved profits each quarter.

That all changed  in Q2 of fiscal 2009 when it announced a loss attributed in part to a massive one time charge relating to higher than normal failure rates of certain notebook GPUs it sold computer makers like HP and Dell.

In August, rumors started to circulate that NVIDIA would be leaving the chipset business. NVIDIA strongly denied these rumors and said that the reports were false. NVIDIA pointed to the fact that it held 60% of the chipset market for AMD platforms in Q2 2008, SLI was the preferred multi-GPU platform, and its 790i SLI chipset was preferred by editors worldwide as reasons the rumor were false.

Later in August, the announcement was made that NVIDIA would be enabling SLI on Intel's new X58 chipset without requiring the use of its nForce 200 chip. NVIDIA had previously not allowed anyone to enable SLI without including this chip in the design. This move has been seen by some as an indication that NVIDIA is softening its stance on requiring its chipsets as a possible set up for an exit of the chipset business -- without affecting its SLI market.

NVIDIA is unable to shake the rumors that it is leaving the chipset business. CNET News reports that the rumor has surfaced again. The rumor was churned by a Pacific Crest analyst who said, "our checks confirm" NVIDIA will be leaving the chipset business next year.

Further speculation has NVIDIA pre-announcing another loss for Q3 that ends in October. The report of additional losses would be no big surprise with the computer industry as a whole seeing significant revenue reductions due to the weak economy.

Alongside the rumor that NVIDIA would leave the chipset business, another rumor is propagating. The rumor has NVIDIA providing graphics chips for the MacBook systems expected to be announced on October 14. Reports claim that NVIDIA is showing internal prototypes of Mac systems running its GPUs. NVIDIA already provides the graphics chip in MacBook Pro systems, so it would not be that big a shock to find out this rumor is correct.

Adding more fuel to the rumor that NVIDIA will see continued reductions in profits is the prediction from Pacific Crest analysts that NVIDIA could see market losses in the notebook segment to Intel's Montevina integrated graphics processor.

CNET News reports that one of the signs that NVIDIA would be providing GPUs for Apple being pointed to is a simple graphic on the NVIDIA site that some see as a MacBook design possibility. It's easy enough to see a foreign maker of accessories for the iPod leaking Apple designs by unveiling cases too early, but it would be hard to see NVIDIA make that sort of mistake.

Odds are the image is nothing more than a stock graphic the NVIDIA web designer placed on the site. An even more likely scenario has Apple updating the NVIDIA GPUs used in its MacBook Pro notebooks.



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Interesting
By FITCamaro on 10/7/2008 12:37:52 PM , Rating: 1
Wonder why Apple would wanna go to Nvidia's chips considering ATI's use less power.




RE: Interesting
By silversound on 10/7/2008 12:50:56 PM , Rating: 2
I dont think apple will even consider nvidia chipset, its just a rumor they are probably still use intel chipset with core i7, ATI graphic cards run much faster than nvidia cards in Macs


RE: Interesting
By Mitch101 on 10/7/2008 1:15:18 PM , Rating: 2
Apple would need to do it just for the HD video abilities of the GPU be it decoding or encoding or like the recent talk of Photoshop.

I suspect Apple might be looking for a chipset solution as apposed to a add on graphics solution and ATI doesnt have a chipset for Intel cpu's.

An ATI solution would have to be an add on graphics board which would take a higher power requirement. So maybe on a higher end model?

This is evolutionary but expect Apple fans to predict life without would be meaningless.


RE: Interesting
By mindless1 on 10/7/2008 6:24:10 PM , Rating: 2
For one, Apple isn't paying their customers' electric bill. Total integration cost for desired features can still be lower even if the larger heatsink on top costs 25 cents more.


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