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Nvidia expects significant declines in Tegra profits for fiscal 2014

NVIDIA recently announced that it is expecting a significant drop in its Tegra chip revenue this year. NVIDIA is predicting that revenue may drop as much as 40% and is laying the blame for that significant drop at Microsoft's feet citing poor Windows RT adoption as the cause.

"We don't expect as much return from the investment as we had hoped," NVIDIA CEO Jen-Hsun Huang said this week.

Microsoft and NVIDIA worked together closely to ensure that Windows RT would work on the NVIDIA Tegra 3 chips. Lenovo was one the manufacturers that produced a tablet that used NVIDIA's chips, but that tablet, the Yoga 11, was yanked from Lenovo’s online store.

NVIDIA posted revenue for its Tegra line in the last fiscal year of around $750 million. The expectation is for revenue from the chip family in fiscal 2014 to be $200 million to $300 million less than last year.

Despite the fact that revenues are expected to significantly declined for NVIDIA's Tegra line, NVIDIA continues to work with Microsoft on the second-generation Surface tablets. Jen-Hsun Huang says that NVIDIA is working very closely with Microsoft to make Surface 2 a "big success."

If NVIDIA is onboard with Surface RT 2.0, we’re likely to see Tegra 4 as the brains behind the machine.

Sources: Computer World, CNET

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RE: why
By retrospooty on 8/9/2013 11:33:53 AM , Rating: 5
OEM's are'nt jumping on the Tegra 4 at all. The "blame" is just that, blaming, rather than addressing why OEM's are avoiding them. They are even making their own stuff because OEM's are preferring Qualcomm. The Shield nad now we are seeing the Tegra tab. No thanks. I had a new Excite pro for about 2 weeks and sent it back. It was fast, but hot as hell and crappy battery life. The Tegra4 isnt going to cut it.

RE: why
By sprockkets on 8/9/2013 9:21:31 PM , Rating: 2
The hi res Asus Transformer Infinity 2nd gen will use it.

RE: why
By hpglow on 8/11/2013 1:37:32 PM , Rating: 2
The Tegra 4 hasn't been avalible long enough to get design wins. I don't think adoption of Tegra 4 has anything to with performance. The Tegra 4 has proven to have acceptable performance for its power useage. The main issues are that Nvidia rode out the T3 too long (the T4 should have been on market months sooner), and rumor'ed pricing of the T4.

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