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.