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Thursday, 29 July 2010 10:31

Nvidia lowers Q2 revenue outlook

Written by


18 percent cut
Nvidia has officially lowered its Q2 revenue estimates from $950 to $970 million down to $800 to $820 million.

The chipmaker announced that the drop was caused by weak consumer spending that slowed down sales of its high-end GPUs. Nvidia also noted that memory costs also had an impact on sales, as well as economic turmoil in Europe and China.

It also appears that the market is shifting to low cost GPUs, which can't be good news for Nvidia, as it sill lacks competitive products in the low end market segment. Mercury Research analyst Dean McCarron also noted that Apple's shift to ATI GPUs was just part of a larger, concerning trend. Partners and consumers are shifting to ATI cards in ever increasing numbers.

Nvidia shares slipped 6.5 percent on the news, to $9.47, which really isn't too surprising considering all the bad news from the green team in recent days.
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+7 #1 pogsnet 2010-07-29 12:18
This is expected to losing market share team. But 18% is not so accurate to picture everything, specially I can only see GTX 460 a good selling product they have and I bet it was sold in a very thin profit or not at all.
 
 
+1 #2 yourma2000 2010-07-29 15:41
Quote:
The chipmaker announced that the drop was caused by weak consumer spending that slowed down sales of its high-end GPUs


No, people just didn't want to buy a graphics card that overloads the power generators in Hoover Dam
 
 
+1 #3 Bl0bb3r 2010-07-30 01:48
Predictions for Q2 two days before Q2 ends aren't really predictions, more like they don't want to answer the tough question as to "why they slipped 18%?".

Pathetic at best!
 
 
+1 #4 Jurassic1024 2010-07-30 22:43
Quoting pogsnet:
...I bet it was sold in a very thin profit or not at all.



That's what happens to ALL cards (AMD and nVIDIA) in the high end market. The high end is NOT where the big money comes. It's the low and midrange that make both camps the biggest chunk of their GPU sales, and that won't change in our lifetime.

Proof? The market share of Intel IGP's. ;)
 
 
0 #5 SiliconDoc 2010-08-06 23:39
Quoting Jurassic1024:
Quoting pogsnet:
...I bet it was sold in a very thin profit or not at all.



That's what happens to ALL cards (AMD and nVIDIA) in the high end market. The high end is NOT where the big money comes. It's the low and midrange that make both camps the biggest chunk of their GPU sales, and that won't change in our lifetime.

Proof? The market share of Intel IGP's. ;)


WRONG AGAIN. Nvidia has a HIGH END HUGE PROFIT MARGIN series called FERMI. #7% of their profits are from it. Cards sell for thousands of dollars EACH.
 
 
0 #6 SiliconDoc 2010-08-06 23:40
That's 37% of Nvidia profit is HIGH END FERMI cards that sell for thousands of dollars each.
 

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