Dubbed Kai, the tablet reference platform pairs Nvidia's Tegra 3 quad-core system with lower cost components. It could also make its way into a much more compact form factor, MyDrivers.com speculates.
There is not much detail available and there is no information on whether this move is geographically limited. According to the article, however, Nvidia is apparently working with a "number of Chinese mainland manufacturers." That said, if were Nvidia able to bring down the cost of a smartphone from the current contract-less $599 and $699 devices, the company could have an opportunity to branch out into markets that its rivals such as Qualcomm, Samsung and Intel cannot reach at this time. Additionally, a rather unique platform approach could accelerate cooperation with Microsoft for Windows 8 phones.
The good news for the consumer is, of course, that there seems to be plenty of competition and traction for innovation in the smartphone market.