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
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8/9/2013 12:39:29 PM
For the simple reason that the price of a full blown Windows tablet cannot compete with budget Android tablets due to the cost of Intel CPUs. If Microsoft does nothing, Android will overtake Windows, Apple will continue to make great products, and Microsoft will be relegated to third place. Microsoft has to at least fight.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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