Windows RT Woes Weigh on NVIDIA Revenue, Company Working on 2nd Gen Surface RT
August 9, 2013 10:40 AM
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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
This article is over a month old, voting and posting comments is disabled
8/9/2013 12:12:17 PM
Agreed. But trudging along with Win32 indefinitely obviously wasn't going to cut it. They were right to try to move things along -- they were right to aim for a lot of the things they aimed for -- it's just that they're abysmal at execution.
And to be honest, it isn't really that problematic that there's a Windows proper and a Windows RT. It makes sense for them to stick with it until they can figure out a valid value proposition. The actual problem is that the clock is ticking; they can't just goof off and stumble around on this forever.
This stuff would've happened to a much worse degree if they hadn't acted as soon as they did. Lugging Win32 into the future would've seen them eventually shrivel up from starvation as the Operating System will no longer be a monolithic cash cow that no one wants to bother with. Everybody's got an OS these days.
The Windows business model was approaching a brick wall and Microsoft took action before it was too late. The tragic thing is that it was stupid action. Perhaps they end up crashing (and starving) anyway.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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