Nvidia Corp. on Wednesday announced that it expects revenue for the fourth quarter ending January 29, 2012, to be lower than the company's previous outlook provided back in October. The developer of multimedia chips blames shortages of hard disk drives as well as lowering demand towards Tegra 2 system-on-chips for the lowering revenue.
The global disk-drive shortage caused by the flooding in Thailand had more impact on the mainstream GPU segment than anticipated. Shipments by some PC OEMs were reduced. And the higher prices of disk-drives constrained some PC OEMs' ability to include a discrete GPU in their systems.
Additionally, the Tegra 2 mobile business declined more rapidly than expected, ahead of devices based on the Tegra 3 processor ramping into production in the first quarter of calendar-year 2012.
Nvidia is not the first company to blame shortages of hard drives and their increased prices for lower-than-expected revenue. Intel Corp. also suffered as manufacturers of computers had to buy more affordable chips to compensate boosted HDD pricing. Dropping demand for Tegra 2 is rather surprising, but indicates that tablet makers are now gearing for a new breed of slates with four processing engines as well as advanced graphics adapter.
Nvidia's earnings are now expected to be $950 million, plus or minus 1% percent, compared with original expectations of $1066 million, plus or minus 2%, provided on November 10, 2011.
Tags: Nvidia, Geforce, Quadro, Tegra, Business, HDD, WD, Seagate, Hitachi, Samsung
Comments currently: 4
Discussion started: 01/25/12 06:36:48 AM
Latest comment: 01/25/12 11:27:30 PM
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HDD shortages? or the 7970 which is much faster than the 580 but at nearly the same price
did i mention it used less power too
the 7950 should be cheaper, still more powerful than the 580 and uses even less power
they should lower revenue expectations for next quarter too
still waiting for the 680 to see if it is like the 7970 or like the 580 to the 6970
if nvidia wants to increase gains, it should release next-gen GPUs fast
01/25/12 06:36:48 AM]
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Geez, get off the AMD Kool-Aid bro. AMD is on a new manufacturing node so yea, it will be lower power and faster. Nvidia will get there but the people who make their GPUs is having trouble keeping up with the demand. They have to make stuff on that node for like 15 different companies and capacity is limited. From what I heard the new Nvidia card being released is 225W on the 28nm node. That tells me that this card will be fast as sh!t.
01/25/12 11:04:43 AM]
i know that's why i said "if nvidia wants to increase gains, it should release next-gen GPUs fast"
"still waiting for the 680 to see if it is like the 7970 or like the 580 to the 6970"
the people who make their GPUs are the same who make AMDs since the last gen (or the one before) TSMC
i know 28nm processors are faster (because they allow higher frequencies), i'm just speaking that AMD got there before Nvidia so it got more sales
and the TDP of the 7970 is 250 which is higher than the nvidia one you mentioned
but most of the speed depends on the architecture itself
and most rumors about nvidia are false (some people on wikipedia said that nvidia cards have 25 GFLOPS/watt even nvidia said they won't be more than 6-8 GFLOPS/watt for kepler)
01/25/12 01:31:10 PM]
What are you, 12??
AMDs GPU unit last quarter
Operating Income $27M
Nvidia revenue 960 million profit around 170 million
01/25/12 11:27:30 PM]
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