The CEO of Nvidia, Jen-Hsun Huang declared that his company will not be interested in making normal smartphones. Instead, Tegra will focus on manufacturing tablets that are more of the kind of ‘superphones’. Nvidia is trying to utilize the graphics capabilities of the Tegra as much as possible. These graphics will play great role in playing high quality games on tablets. Nvidia is also looking for Tegra applications in the car in which the requirements for visual elements are increasing.
When it comes to the world of mobile chipsets, it is very much evident that Qualcomm is the leader of the show. Nvidia has been in the competition for some amount of time with Tegra 3, but not so much with Tegra 4 that has brought down the company shares in budget market considerably. However, Qualcomm seems to be everywhere now. At some point of time in future, we expect Nvidia coming to the competition again with Tegra 4i chips in entry-level and mid-range handsets. However, currently the chances of this occurrence seem to be remote with the kind of reputation Qualcomm has in the market.
In order to make a significant return in the budget market, CEO of Nvidia has decided to focus on superphones instead of normal ones to gather more market shares in this niche. The phones like Galaxy S5, Galaxy Note 3, and LG Pro G 2 lie in this category. Today, Qualcomm would be present in those chips. But in the future, Nvidia is planning to join the party with Qualcomm.
Nvidia came into the smartphone market with the launch of Tegra 3 that was in plenty of devices including Lenovo, HTC, and Motorola. However, the newer version Tegra 4 couldn’t hold the same sort of performance as did the older version. As a result, Nvidia lost the share in the markets. Nvidia lost their major hold in market as a result.
Nvidia is not able to compete with its great competitors in the budget market such as Media Tek that is taking a huge lead. Forget about the big shareholders, Nvidia is not able to compete with even single or dual core chips because the company simply cannot afford to have lower returns.
During the 4th quarter, the revenues generated from Tegra as $131 million. This figure has come down 37% as compared to the previously generated revenues with Tegra 3. This sudden fall in the market shares is due to the inclusion of Tegra 3 chips quite a lot in previous year as compared to the Tegra 4 chips recently. Despite this failure, Nvidia expects the Tegra 4i and K1 to grab more shares in the market.
In a grand competition in handsets, chipping market, it is not enough to have features of providing fast processing or high graphics alone. Apple is now manufacturing its own chip (SoC) and will not rely on Nvidia chips any more. Samsung also has its own line of chips.