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

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.

  • rocknrollz
    $25 for the tegra chip. Dang thats cheap.
    Reply
  • killabanks
    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
    Reply
  • darkchazz
    Tegra 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.
    Reply
  • LonelyMan
    Money money money
    Reply
  • nebun
    lol....not bad...AMD's future is very bleak
    Reply
  • jdog2pt0
    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).
    Reply
  • kronos_cornelius
    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 ?
    Reply
  • There WILL. NOT. BE. AN. iPad MINI!!! geez people...
    Reply
  • xophaser
    $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.
    Reply
  • aznshinobi
    AMD should really look into the market or get into the market faster. Nvidia is reaping a profit from the mobile platform.
    Reply