Sign in with
Sign up | Sign in

Nvidia: GPU Failures Not Affecting Our Orders

By - Source: Tom's Hardware US

Nvidia has said its sales are in no way harmed by the GeForce G84 and G86 fiasco that took place last summer.

In July of last year, Nvidia admitted in an SEC filing that some notebook chips were failing at “higher than normal rates.” According to the filing, Nvidia said it would incur a $150 to $200 million charge for the quarter, with the money covering warranty, repair and return and replacement.

A stock-bloodbath such as this is never good news for a company, however, vice president Ujesh Desai said at this year's Computex that, despite the effect on Nvidia’s reputation, computer builders are still choosing the company’s graphics cores and are actually increasing their usage this year. According to Electronista, Desai said that trying to fix the problem quickly helped preserve much of that business. "None of the OEMs held that against us or anything," Desai is cited as saying. "I think we stepped up and we did a good job with how we handled that."

That said, just because OEMs have all but forgotten, that doesn’t mean Nvidia’s problems are over. In May of this year, news got out that five people were suing Nvidia. The group feels that the measures undertaken by Nvidia are not enough and are seeking full replacement of the faulty chips along with unspecified damages.

Rather than recall faulty notebooks, manufacturers of laptops affected have gone through certain steps to help cover the problem. HP and Dell extended warranties and released new BIOS software that increased the fan speed to better cool the GPU – hopefully warding off any defects from showing up. Apple promised owners of the GeForce 8600M GT-equipped that it would repair for free any faulty GPUs within two years of purchase date, regardless of Apple Care coverage.

"This is a grossly inadequate 'remedy,' as it results in additional manifest defects, including, without limitation, further degraded battery life, system performance and increased noise in the Class Computers," the plaintiffs said in a legal filing.

"Worse, this 'remedy' fails to solve the actual problem. Instead, this measure only ensures that the Class Computers will fail after the OEM's express warranty period expires, potentially leaving consumers with a defective computer and no immediate recourse," the lawsuit continues. "Finally, even after this purported 'update,' video and system performance is still degraded due to unacceptably high heat and part failures.

We’ll keep you posted on how the suit turns out but it seems Nvidia thinks that it has done its part for the consumer, while its customers think differently. Do you think Nvidia’s effort to remedy the situation fell short? Let us know in the comments below.

There are 30 Comments.
Other Comments
  • 7
    kansur0 , June 10, 2009 12:36 AM
    I just found a laptop with the GeForce 8600M GS at a local computer store that was "refurbished". I asked the salesman what the reason was for the return. It was a video issue where the screen went black. They replaced the motherboard. I asked if they would consider a in-store extended warranty and they refused. The laptop has a 7 day in-store refund and 30 day warranty for defects. I told the salesman about the known issue with nVidia chips and he knew about it. He knew that he was selling a product that will eventually fail. He argued that this happens with all computer products. I argued that not all products have know failure rates that make the product practically useless beyond the rediculous 30 day warranty they offer on something that has already been proven to fail by being refurbished.

    What is a travesty is that they are waiting for some poor shmuck that things this laptop that is worth $1000 and is marked down to $670 is a great deal when in reality he is paying $670 for what is in effect a 3 month lease on a computer at best. This laptop will fail yet the unsuspecting consumer is left holding the bag. That is why nVidia should be sued to the fullest extent of the law.

    People who sell products that they know are defective should be put out of business. The customer should have the option to replace the part completely with a new part that is not defective. End of story. No excuses.

    When I buy a product from a retail establishment that product should have a reasonable life expectancy of two to three years. Not three months. Not six months. But...that is why they have warranties...at least we have that option in order to protect ourselves from getting shafted.

    Now when I see an nVidia logo on a product I have to wonder if it is a brand new untested product that may fail and if it does chances are that I will be left holding the bag...much like the unsuspecting consumer that will buy the faulty chip that I have found in a retail establishment...still for sale. Ready to fail. Unsupported.

    nVidia...because I know your attitude towards producing products that you do not support I fail to see the reason why I should buy any of your products no matter how well they perform at any price point. If your company should happen to fall as a result of criminal practices and you disappear from the GPU landscape...you will not be missed.





  • 6
    curnel_D , June 9, 2009 11:47 PM
    In a buisness sense, bottom line type situation, they handled it perfectly. From a consumer standpoint, they're basically telling everyone who bought a PC with an affected chip to sit and spin.

    "Yes, we know your notebook will fail, and we know why. But no, we wont fix it, we'll just make sure your warranty is up before it does fail. Sorry." Thanks Nvidia! (I've only had one 8600 equiped notebook fail on me, but one is enough.)
  • 6
    laptopfreak , June 9, 2009 11:18 PM
    I think that nVidia should do a free replacement of all the defective units instead of having system builders turning up fan speed to lengthen the time before a serious hardware failure. It really doesn't show any responsibility on their part by only replacing failed ones and knowing that the others have the same problem but just haven't failed yet.
Display more comments