According to Nvidia Chief Financial Officer Tegra sales shrunk 15 percent from the financial Q4 2014 a year ago.C olette Kress, Executive Vice President and Chief Financial Officer at Nvidia claimed the reason was that "smartphone and tablet designs reached the end of their product life cycle."
However there is a new trend, the revenue increased on the auto infotainment systems and Colette said that investors that this market more than doubled. Nvidia saw increase in earnings from Shield devices too, but did not say much more about it.
It looks like Tegra's future is under a car's bonnet. Nvidia reported better than 80 percent growth during the year. More than 7.5 million cars with Nvidia technology are now on the road and a year ago Nvidia had only 4.7 million cars. This is where most of Tegra money was coming from.
Nvidia has introduced Nvidia Drive. NVIDIA Drive is the first car computing platform, using advances in deep learning and there is no doubt that this segment will become big in the months to come. We will tell you more about the Drive later, but the technology looks great and will help the self-driving car's future. Nvidia Drive can use data from inexpensive cameras and help auto vendors to make a self-driving car. This is cheaper than with Lidar Light Detection and ranging rotating device that sits on top of the self-driving cars.
Nvidia Drive and the commitment to automotive makes sense is that margins are probably much bigger than in the overcrowded phone and tablet market. The car industry can provide users for Nvidia and the technology inside of the car is just a small fraction of the total price. We see an infotainment becoming a standard option for most manufacturers and more cars. Apparently people will want to connect their phone to their infotainment and play Spotify music. Maybe in the future you could use your LTE connected car and stream Netflix to the rear seats as well, this is what we expect from the future. This is the sort of thing that Tegra eats for breakfast.