Published in Graphics

Nvidia's workstation sales drops 47 percent

by on17 February 2009

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Was not safe harbor in Q4 


Nvidia
has lost its safe harbor. The company dropped significantly in IGP and GPU sales, but we were very surprised to hear that Nvidia had 47 percent drop in the workstation market sales.

This time around, this was not a safe harbor for Nvidia and we generally think that the overall workstation market shrunk and that ATI might won a few percent with HP and Dell deals.

The worst part is that Nvidia´s CFO Marvin Burkett doesn’t believe that workstation sales will recover in Nvidia´s Q1 which is not really something that investors want to hear. On the long term this will cannibalize Nvidia´s profits and overall average selling price as workstation chips are incredible source of income, but apparently not in Nvidia´s Q4. Workstation was not the only part of Nvidia business that suffered as graphics and IGP also fell dramatically, more than 50 percent lower sales then in Q3 2008 which is a disaster number.

It seems that workstation people simply decided that Q4 2008 is not a good time for investing in super expensive hardware and graphics workstation and that if it can wait, such a buying decision should be postponed for better times. This is what hit Nvidia and it will continue most of the IT companies, people will spend only if it’s absolutely necessary to replace their old hardware / software.

 

Last modified on 17 February 2009
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