Nvidia May Adopt “Think Globally, Act Locally” Approach to Tegra Business

Head of Nvidia Delighted About Microsoft Surface, But Will Give More Attention to Local Brands

by Anton Shilov
10/07/2013 | 11:51 PM

While chief executive officer of Nvidia Corp. is delighted that his company worked on Microsoft Corp.’s Surface-series media tablets, which have so far failed to become any popular, he claims that his company may have more chances with local manufacturers, such as Xiaomi or Xolo in China and India. Such approach is typically used by technology companies on new markets.

 

“Our strategy is to be more successful in mobile devices, that is for sure. […] It is really quite amazing what the local Indian brands have been able to do. They have captured almost 50% of the phone market here. That is when huge companies like HTC, Nokia and Motorola are still to find their footing, against Apple and Samsung. Xolo (a Lava brand) is doing fine. That is a bit of a miracle, right? That is because local companies understand the local taste, local style, local rhythm; and they move fast – they understand the local distribution. They can benefit from global technology like ours. I think they are a fantastic opportunity for us. I am really excited about it,” said Jen-Hsun Huang, chief executive officer of Nvidia, in an interview with The Economic Times.

“Think globally, act locally” approach is by far not a new one. It has been successfully implemented not only by Nvidia itself, but also by Intel, AMD and many other technology companies. In many cases, global players really do not know how to address local markets, which is where local brands come into play. It looks like in a bid to popularize its Tegra application processors, Nvidia may adopt the approach.

Microsoft Surface is a great example how a global corporation cannot create a product that could be equally successful in the U.S. and Europe. But while the Surface has failed to get a respectable market share even in the USA, the chief exec of Nvidia is proud of his company work on the slate.

“I will say that Surface has been a big disappointment for us and for Microsoft. Both of our expectations from the product were much greater than what came to be and not only that. We invested enormous amount into research and development and spent a lot of time and energy into it. All of us poured heart and soul into it, like we do for any product. But look that is the price of innovation. You cry over that or you move ahead. You lick your wounds, and move on. No hard feelings and I am delighted that I did Surface,” said Mr. Huang.