Last week at Nvidia's Q3 2012 conference call, James Schneider from Goldman Sachs Group Inc., Research Division asked Nvidia about Tegra 3 vs. Tegra 2 placement.

Jensen started talking about market share and 10-inch market share that Nvidia owns and 7-inch tablet market that is currently emerging and all of a sudden he mentioned that “there were a couple of design wins that I wish we had this year that we didn't have. I already mentioned Motorola. (Xoom 2).”

 “We were surprised by the Amazon Fire. But frankly, we're not going to be surprised again. And so we're obviously very excited about Amazon and want to do our best to be a partner of theirs someday,” he said. Naturally Nvidia would want to beat Texas Instruments and get inside of every tablet on the market, but it looks like the one that might outsell the rest of Android tablets on market went to the hands of Texas Instruments.

Jensen also told James that Tegra 2 is here to stay and that they just got three new phone designs, while Tegra 3 will ship in many 7- to 10-inch tablets. Jensen also talked about the technology called DIAdem, where Nvidia can modulate backlight per pixel in a frame in a scene and this should reduce the amount of backlight intensity and backlight energy by nearly half, Jensen claims.

Naturally he mentions that Tegra 3 in a different class than OMAP4 or Tegra 2 processors and that people who like performance but good battery life will want to go for Tegra 3. Tegra 3 is also first with quad core for phones that this should revolutionize the superphones once again. 

However, with Kindle Fire in mind, we believe that both iPad and Android 3.2 / 4.0 tablets will suffer heavily since people won’t think twice about spending $199 for a Kindle Fire, but Asus Transformer Prime despite its great looks, battery life and performance, will sell for 2.5 times more, $499 + some $149 extra for keyboard dock.

It will be an interesting Xmas for the tablet market, that is sure.