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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 Mitch101 on 8/9/2013 2:07:15 PM , Rating: 2
Cant lump Windows Phone in there that Market is growing even as the market for smartphones is still growing its outpacing that to show market share increases. Its a slow increase but none the less an increase and customer satisfaction on the Windows Phone is extremely high.

Surface RT is a real question mark. Part of me thinks Microsoft should do like Cyanogenmod and make ports of Windows RT for other tablets.

RE: why
By nafhan on 8/9/2013 5:39:49 PM , Rating: 2
Symbian is gone, there's not much more take away from BB, and first world (for lack of a better term) smartphone market growth has mostly stagnated due to saturation. For MS to continue growing, they'll have to take from iOS and Android or go after the developing world. It'll be interesting to see where those growth numbers go over the next year - for everybody.

That said, I think going after the developing world is a BIG part of their strategy. See: Nokia 521, probably the best phone in it's price range, and Nokia has historically done very well in those markets. Plus, I like Android, but the cheap Android phones are almost universally terrible.

Letting people buy and install RT on their own tablets is an interesting idea, but one that would appeal mostly to people who are stuck with Win RT for some reason, and want better hardware - likely a very small market.

RE: why
By Mint on 8/9/2013 6:02:32 PM , Rating: 2
I wonder if that's legal. Assuming they can get drivers written for the internal components, is MS allowed make an OS for a Nexus 7 or 10?

If it was, would Google go to war with MS and make a virtualized version of x86 Android to attack the x86 market? Such a move could slow adoption of Win8/RT apps.

RE: why
By inighthawki on 8/9/2013 6:43:26 PM , Rating: 2
a Neuxs 7/10 is nothing more than a piece of hardware which contains an ARM CPU. If WinRT runs on that particular variant of the hardware, there's really not much anyone can do to prevent someone from doing it.

The same reason allows Linux to run on just about everything.

RE: why
By Reclaimer77 on 8/10/2013 1:20:38 AM , Rating: 1
Surface RT is a real question mark. Part of me thinks Microsoft should do like Cyanogenmod and make ports of Windows RT for other tablets.

Right, that would work. Let's mod a tablet to run an OS much worst than the one it's overwriting, and that nobody likes in the first place.

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