The Inquirer-Home

Floods and slumping Tegra 2 sales hit Nvidia revenue forecast

Floods washed away sales
Wed Jan 25 2012, 14:04

CHIP DESIGNER Nvidia has revised its fiscal fourth quarter revenue forecast less than a week before its accounting period closes.

Nvidia issued a statement revising its revenue forecast for its fourth quarter ending 29 January 2012 to be lower than previous estimates. The firm now expects revenue to be $950m give or take one per cent, compared to a previous estimate of $1.066bn made back in November.

Nvidia laid the blame on the Thai floods that affected a number of component suppliers leading to a reduction in the number of systems shipped. However Nvidia couldn't hide behind natural disasters when it said demand for its Tegra 2 chip "declined more rapidly than expected".

According to Nvidia its Tegra 2 business fell away due to its launch of Tegra 3, saying production of its five-core system-on-chip will be ramping up in the first three months of 2012.

A month after Nvidia's Tegra 2 was launched at CES 2011 the firm was busy publicly showing Kal-el, the basis of Tegra 3. Within a year Nvidia had surpassed Tegra 2 suggesting that the delays associated with the chip had cost the firm dearly.

Nvidia's five-core Tegra 3 has been put into Asus' Eee Pad Transformer Prime. While the device is impressive and the chip is undoubtedly fast, Nvidia's rivals are preparing competing chips. µ

 

Share this:

blog comments powered by Disqus
Advertisement
Subscribe to INQ newsletters

Sign up for INQbot – a weekly roundup of the best from the INQ

Advertisement
INQ Poll

Masque malware is putting iPad and iPhone user data at risk

Has news of iOS malware made you reconsider getting an iPhone?