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Nvidia Making Millions From Sale of Google's Nexus 7 Tablet

By - Source: DigiTimes | B 22 comments

Google's Nexus 7 Bringing $75M to Nvidia in 2H12 Alone

Unnamed sources in the supply chain claim that Nvidia has obtained at least 3 million orders for its quad-core Tegra 3 chip to be used in Google's Nexus 7 tablet. Around 3 to 4 million Nexus 7 units are expected to ship by the end of 2012, they said.

Currently Nvidia charges around $25 for each Tegra 3 chip. That means the company will earn revenues close to $75 million USD just thorough its Nexus 7 orders alone in the second half of 2012. Profits from the orders are expected to reach around $10 million USD in that time period.

Of course, these numbers could change once Apple dishes out its own 7-inch tablet, the rumored iPad Mini. Consumers holding out for the smaller iPad may likely skip over Google's Android offering later on this year, and may even ignore Amazon's second-generation Kindle Fire given that Amazon's Instant Video service can be streamed to the iPad platform. That said, both Google and Amazon will need to find ways in keeping the focus on their products prior to Apple's supposed launch by the end of September.

Nvidia's Nexus 7 orders and other products using its quad-core Tegra 3 SoC are reportedly helping cover the company's weakening performance in the graphics chip business. Currently Nvidia is quickly recovering its losses in the ARM-based processor market thanks to Google's pricing strategy with the Nexus 7. As of this writing, the 8 GB version costs $199.99 USD whereas the 16 GB model costs $249.99 USD. Google may slash the prices even more once the iPad Mini hits the market.

Just recently slides revealed the Xperia Sony Tablet, what's believed to be the successor to the Sony Tablet S. It will reportedly come packed with Nvidia's Tegra 3 SoC, Android 4.0 "or later," 16 GB, 32 GB, or 64 GB of internal storage, 3G connectivity, and a larger 6000mAh battery good for 10 hours of Wi-Fi browsing. It will also feature an 8.8-mm thick splash-proof aluminum shell, 42-percent thinner than the current Tablet S.

The new Xperia tablet will also feature an optional cover that serves as a super-thin keyboard, echoing Microsoft's own efforts with its Windows 8-based Surface tablet. However Sony's version wraps around the entire tablet and folds at the back, serving as a kickstand. The cover is expected to sell for $99.99 USD whereas the tablet itself is expected to sell for $449.99 (16 GB), $549.99 (32 GB) and $649.99 (64 GB).

The Xperia Sony Tablet is slated to arrive in 3Q12 although Sony hasn't officially announced the device as of this writing.

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Top Comments
  • 11 Hide
    killabanks , August 5, 2012 2:07 AM
    sounds good maybe now they can improve the gpu drastically for tegra 4.. sad to believe that imagion with their power vr is whopping the mighty nvidia's butt
  • 10 Hide
    doron , August 5, 2012 11:01 AM
    darkchazzTegra 3 is all marketing and hype. it can barely keep with snapdragon S4 and exynos quad.Again nvidia is promoting this "console quality gaming" bullshit, and paying off developers for exclusive stuff.OMG 12 COAR GPU!!! ..... yet it's not a match for the 4 core mali400mp and the 2 core SGX543.


    Not sure why you got thumbed down so bad, it's actually correct AFAIK
    http://www.anandtech.com/show/5688/apple-ipad-2012-review/15
Other Comments
  • 4 Hide
    rocknrollz , August 5, 2012 1:52 AM
    $25 for the tegra chip. Dang thats cheap.
  • 11 Hide
    killabanks , August 5, 2012 2:07 AM
    sounds good maybe now they can improve the gpu drastically for tegra 4.. sad to believe that imagion with their power vr is whopping the mighty nvidia's butt
  • 1 Hide
    LonelyMan , August 5, 2012 4:20 AM
    Money money money
  • 9 Hide
    jdog2pt0 , August 5, 2012 4:57 AM
    You know, if AMD/ATI actually tried to compete instead of throwing in the towel, they might actually be able to make some money in the mobile sector. Anyways, I'm glad to see Nvidia doing well. Personally, I'm holding out for the Nexus 10 (10" screen).
  • 2 Hide
    kronos_cornelius , August 5, 2012 7:24 AM
    The Galaxy Note 10.1 will probably the one that will be irresistible. I am saving my pennies for that one. I may be just daydreaming, but how cool it would be if it had an OLED display ?
  • -7 Hide
    Anonymous , August 5, 2012 8:06 AM
    There WILL. NOT. BE. AN. iPad MINI!!! geez people...
  • 1 Hide
    xophaser , August 5, 2012 8:09 AM
    $25? The processor chip is usually the most expensive hardware. Then why are most tablets going for $300-400...profits. Grant R&D, but tablets aren't a new thing. And we all know labor cost in china is slow low that it is a joke. Grant this pale compared to apple's differential.
  • 7 Hide
    aznshinobi , August 5, 2012 8:50 AM
    AMD should really look into the market or get into the market faster. Nvidia is reaping a profit from the mobile platform.
  • 10 Hide
    doron , August 5, 2012 11:01 AM
    darkchazzTegra 3 is all marketing and hype. it can barely keep with snapdragon S4 and exynos quad.Again nvidia is promoting this "console quality gaming" bullshit, and paying off developers for exclusive stuff.OMG 12 COAR GPU!!! ..... yet it's not a match for the 4 core mali400mp and the 2 core SGX543.


    Not sure why you got thumbed down so bad, it's actually correct AFAIK
    http://www.anandtech.com/show/5688/apple-ipad-2012-review/15
  • 3 Hide
    JeanLuc , August 5, 2012 4:38 PM
    doronNot sure why you got thumbed down so bad, it's actually correct AFAIKhttp://www.anandtech.com/show/5688 [...] -review/15


    Agreed. People should really do some research and know the facts before expressing an opinion on matters that they clearly know little about. What gets me though is at least 19 people voted you down but not one of them could be bothered to say why your wrong, lol.

    If you think Tegra 3 is slow compared to Snapdragon you should look at the performance difference between Tegra and at PowerVR's British designed latest and greatest mobile graphics chip SGX 545MP4. Google must know something that we don't and believe Nvidia are going to drastically catch up with the competition in the near future because otherwise I do wonder why Google continues buying Tegra based chips when clearly there's much better performing chips around.

    On the more positive side Tegra does seem offer much better image quality then SGX but the games that can show off Tegra are few and far between because there just isn't enough Tegra based devices out their to justify coding software for a single chip.
  • 7 Hide
    nebun , August 5, 2012 4:55 PM
    ZingamCoz NVIDIA, Apple, Intel and Microsoft fanboys are generally brainless.

    define brainless....please do
  • 6 Hide
    alidan , August 5, 2012 7:42 PM
    JeanLucAgreed. People should really do some research and know the facts before expressing an opinion on matters that they clearly know little about. What gets me though is at least 19 people voted you down but not one of them could be bothered to say why your wrong, lol. If you think Tegra 3 is slow compared to Snapdragon you should look at the performance difference between Tegra and at PowerVR's British designed latest and greatest mobile graphics chip SGX 545MP4. Google must know something that we don't and believe Nvidia are going to drastically catch up with the competition in the near future because otherwise I do wonder why Google continues buying Tegra based chips when clearly there's much better performing chips around.On the more positive side Tegra does seem offer much better image quality then SGX but the games that can show off Tegra are few and far between because there just isn't enough Tegra based devices out their to justify coding software for a single chip.


    its all in the way they worded it, come in factually and go point by point.
    discrediting a chip by saying its all marketing hype, while the tegra 3 is a chip i believe anyone can use, and according to that 1 page of benchmarks, is the best non apple chip available, all that while being able to push a slightly higher than 720p resolution close to if not over 30fps. that is annoying.

    than console quality, they are getting close, weather you want to believe it or not, they are getting very close to a console quality, and this is coming from a GPU MAKER, someones whos bread and butter comes from making crap pretty.

    and than that caps lock little bit... yea... i know what it takes to get down vote, but wow, he may be right but wording it like that makes no one want to pay attention to you. really the only time i pull that crap is when its a gaming article and people want a tech demo instead of a game.
  • -1 Hide
    devBunny , August 5, 2012 8:12 PM
    nebundefine brainless....please do


    Among others: Reacting to keywords rather than content.
  • 0 Hide
    Anonymous , August 5, 2012 10:36 PM
    different os, so different optimization, so fail.

    But I'm pretty sure nvidia chip is either on par with powerVR or better. (In my mind it's better, we are talking about a company which has been one of the main players in pc to mobile device gfx chip maker.)

    And the answer is in this article, have a nice read :) 
    http://www.pcworld.com/article/251947/new_ipad_vs_android_tablets_is_it_game_over.html
  • 3 Hide
    meltbox360 , August 5, 2012 11:34 PM
    jdog2pt0You know, if AMD/ATI actually tried to compete instead of throwing in the towel, they might actually be able to make some money in the mobile sector. Anyways, I'm glad to see Nvidia doing well. Personally, I'm holding out for the Nexus 10 (10" screen).


    I do believe that AMD is currently strongest in the mobile segment. You are referring to ultramobile. Laptop vs smartphone/tablet. They are not doing so bad with laptops right now. Later this year they are supposed to release something for windows 8 tablets. Should be releasing very soon... I hope. Codename Hondo I believe. Nothing for smartphones though.
  • 0 Hide
    kawininjazx , August 6, 2012 1:50 PM
    I think the Tegra 3 runs great. There are some games that look XBox 360 quality and they run perfect.
  • 0 Hide
    dalethepcman , August 6, 2012 6:01 PM
    Wow so much hate... "12 cores vs 2 cores" "The mali xxyy is faster" "It can barely keep up with the xynos" "Why does google buy nVidia."

    There are only two questions of importance when it comes to the SoC for a mobile device. Will it run 30+ FPS at its built in screen's native resolution under the most extreme load? How much power does it use?

    Bragging rights that your Samsung's GPU is faster than my nexus's GPU? Can you actually see the difference? No, then who cares?
  • 0 Hide
    GreaseMonkey_62 , August 7, 2012 6:50 PM
    Wait stop everything. Are you telling me a components manufacturer is making millions when a popular product sells with their part in it?
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