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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 althaz on 8/10/2013 3:28:25 AM , Rating: 2
The hardware WASN'T fine. The physical hardware was fine (aside from screen resolution it was in fact best-in-class), but the SoC (Tegra 3) was fairly out of date and noticably underpowered. Especially considering the price point. Surface RT should have had the latest Qualcomm silicon, a Full HD screen and included the touch cover (or been $100 cheaper). Then it would have had a chance to shine. Discounting the state of the MS app store, Win8 is mostly far superior to Android/iOS on a tablet - it uses less power, performs similarly at worst and much better at best and is designed for a tablet (unlike iOS and Android which are designed for phones, although Android still works quite well thanks to widgets and a superb browser).

It might still have been a flop (the mail app still would have sucked and the app store still would have been fairly lacklustre), but at least it would have had a chance.

MS were too slow to market and tried to sell last-gen hardware at next-gen prices. That's not going to work (unless you're Apple).

"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller

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