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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 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.


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