It seems the release of Nvidia’s 700 series has done wonders for the company, since they stated their sales during the second trimester of this year have increased by 2.4 %, compared to the first three months. Curiously, however, this means the company is doing the exact opposite of what they said they would do when asked about the direction the company would take in the recent future.
A couple of months ago, Nvidia said mobile devices are slowly and gradually outselling any other kind of device, so they proudly announced a paradigm shift for the company: they will –supposedly- concentrate in the development of their Tegra processors for mobile devices.
Well, during the second trimester of this year, Nvidia reported a revenue of 977.2 million dollars (2.4 % more than the previous trimester); and a net profit of 96.4 million dollars (23.8 % more than the previous trimester). At first sight, it seems the future is bright for the company, but after taking a more detailed look at the data, one finds out the increase in sales is thanks to their GPUs for desktop computers, unsurprisingly, thanks to the release of the 700 series.
To make matters worse for their Tegra division, they reported a net profit of 52.6 million dollars, 49 % less than the first trimester of 2013, and even worse, 70.7 % less than the 179.7 million obtained during the second semester of 2012.
What is behind all this is the bad success in the decision to delay the launch of its new “flagship” Tegra 4 in order to squeeze a little business with a hybrid called Tegra 4i (a hybrid between CPU Tegra 3 and Tegra GPU trimmed 4) has not sit well among manufacturers of smartphones and tablets that have clearly opted evolutions like Qualcomm and Snapdragon.
It is definitely time to reverse this process with the launch of Tegra 5 for next year, though the damage in the second quarter and I fear that in the remainder of the year is done.