The consumer market is constantly evolving that what were once dominant products are now struggling to capture a share of the market. Take for instance the PC, in the late 90’s going to the late 2000’s the market for computers was very large. This is not the case today as it has now been overshadowed by smartphones and tablets.
NVIDIA, a company known for its graphic processing units for computers, initially planned to diversify its products by entering into the smartphone and tablet market. The company however faces stiff competition in this market from players such as MediaTek and Qualcomm. The NVIDIA Tegra Chip that it developed for mobile devices found its way to some devices such as the Xiaomi Mi Pad tablet as well as the first two versions of Microsoft’s Windows RT Surface tablet. This isn’t enough though and with PC sales dropping 10% last year with a further 6% drop predicted this year the company needs to find other markets that it could dominate.
Nvidia CEO Jen-Hsun Huang said in an interview with CNET that they are no longer interested in the smartphone or tablet market. The company will be shifting its strategy focusing more on Android gaming and car computers.
The company is now concentrating on its strengths which includes visual computing, graphics, and GPUs just to name a few and try to apply this on devices that can benefit the most from this. According to Huang “In some phones, visual computing is important, but in a lot of phones, visual computing is just not that important. So what we wanted to do was focus on No. 1. gaming, where we can add a lot of value, and we think gaming on Android is going to be important. We’re going to focus on car computers where visual computing and supercomputing technology is really important to the future of cars. And then we’re going to focus our energy on segments of mobile computing, segments of phones and tablets where computer graphics are really important.”
Huang also admitted that the Tegra 4i processor was not successful for the company. Despite the fact that it is a powerful processor that comes with integrated LTE support it isn’t used in a lot of smartphones in the market today. One primary reason behind this is its price. MediaTek for example is churning out low-cost processors which are being used in most of the mainstream devices. Even Qualcomm, Marvell, and Broadcom are pressured by the products released by MediaTek. NVIDIA on the other hand can’t effectively compete against low-cost products since the company is still performance oriented and this comes with a high price.
Right now the company is more interested in developing products such as gaming handhelds, in-car entertainment, smart televisions and set-top boxes.