NVIDIA Lands Google Nexus 7 Order For 3 Million Tegra 3 Chips
NVIDIA has recently gained a fairly substantial order for it’s Tegra 3 chips. The order, which is for at the very least 3 million chips, are for use in Google’s Nexus 7 tablet PC. As it stands, with a supposed price of $25 for the Tegra 3 processor, NVIDIA’s revenue for this order is expected to be close to $75 million with $10 million being profit and this is just from the Nexus 7 order alone. The fact that 3-4 million Nexus 7 units are expected to ship by the end of this year should improve NVIDIA’s ARM-based processor market share. If not by performance, then by the extremely attractive price point of $199-249 for Google’s Nexus 7 tablet PC. For those more interested in the Nexus 7’s performance and features can read our review on the device here.
Since each Tegra 3 is priced at about US$25, Nvidia will earn revenues close to US$75 million just through its Nexus 7 orders in the second half with profits from the orders to reach US$10 million. With the addition of other Tegra 3 orders, the income is expected to help cover its weakening performance in the graphics chip business.
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