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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 Flunk on 8/9/2013 12:21:28 PM , Rating: 2
I'm sure they're release both, Microsoft has enough money to keep making things even if no one on earth buys them. The Surface RT is there to have price parity with Android tablets as well as to make the Surface Pro look better.

Microsoft hasn't given up on Windows RT yet, if they gave up after one failure they wouldn't be selling half the things they are now. Take a look at the Xbox, the first generation lost them millions of dollars but the second became the best-selling console of it's generation.

RE: Why?
By OoklaTheMok on 8/9/2013 4:02:34 PM , Rating: 2
For a v1 product, I think the Surface line is pretty good. Does it need adjusting, of course. The first iPad and Android tablets weren't perfect out of the gate either, but they got better.

I love my Surface RT, and I use it constantly. There are so many things I can do on my Surface that I can't do on an iPad, and with the 8.1 preview, it got alot better. It's not perfect, and there are plenty of things I hope to see in a Surface RT v2.

As history has shown us, Microsoft has a track record of getting things right eventually in the v2 to v3 timeframe. Look at Windows Phone, for example. It was missing plenty of things in the initial release, but now it has general parity with iOS and Android, even though each has features that the others don't. This is a game of chess, not checkers.

RE: Why?
By w8gaming on 8/9/2013 10:43:02 PM , Rating: 2
If Microsoft wants RT to be at a price parity with Android, they seriously need a good device at the cheap $200 price point. Or they will never succeed.

"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

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