NVIDIA predicts drop in mobile processor sales due to Windows RT


NVIDIA has had a rough transition from the PC era to the mobile era, with the Tegra processor line always being trumped by another company, when Tegra 3 was launched, the Snapdragon S4 Pro was fitted on most of the top-end smartphones.

Still, Tegra 3 managed to get some attention and NVIDIA has managed to keep gaining some profits every quarter, but the company says Q3 and Q4 this year may be hard fought, with the recent drop in mobile processor sales due to Windows RT failing to gain any traction.

The Windows Surface hit a $900 million loss and NVIDIA has to suffer the same loss for investing so much time and money into Windows RT. With ASUS and other manufacturers saying they do not feel confident with the Windows RT platform, it seems NVIDIA is not going to benefit anytime soon from its investment.

The Tegra 4 processor has yet to gain any traction on mobile, with the vast majority of manufacturers opting for Qualcomm’s Snapdragon 600 and 800 chips. Not only has benchmark scores shown the Snapdragon 800 outperforms the Tegra 4, Qualcomm is also marketing the chips at a cheaper price, supposedly.

We believe NVIDIA will start dropping chip prices and may look for other ventures to invest in. With Samsung developing their own Exynos processor, NVIDIA needs to start hunting down all available manufacturers and try to sell the Tegra 4 for a lower cost.

Source: Bloomberg