2011 International CES, BOSTON, USA: NVIDIA is well-positioned to take advantage of the emergence of high-performance smartphones and tablet devices in 2011, as described in “Apps Processor Profile: NVIDIA can Earn One Billion Dollars from Tegra in 2014,” from the Strategy Analytics Handset Component Technologies service.
Strategy Analytics predicts that in 2011 alone NVIDIA’s Tegra 2 product could generate up to $300 million in revenue for the company.
Strategy Analytics notes that the performance bar in smartphones is rising quickly and that many of the smartphone operating systems have already started to appear on tablet-like devices, placing greater demands on the CPU.
Applications processor vendors are responding to this challenge with high-performance, low-power dual-core processors. According to this study, smartphone operating system requirements are rapidly increasing. NVIDIA is one of the few companies that has a market-ready dual-core processor to serve these demands.
Stuart Robinson, director of Strategy Analytics Handset Component Technologies service, says: “NVIDIA skipped ARM’s Cortex-A8 generation completely, choosing instead to work on the dual-core ARM Cortex-A9 generation for Tegra 2, which gave them an advantage against competitors. NVIDIA’s direct migration from ARM11 to Cortex-A9 could provide a three- to six-month advantage, particularly in the tablet segment.”
“Strategy Analytics estimates that every one percent extra market share gained by NVIDIA in Android smartphones will contribute an additional $15 million to Tegra 2 revenues in 2011,” commented Sravan Kundojjala, senior analyst. “We expect the first generation LTE smartphones and tablets to widely feature stand-alone applications processors which will favor NVIDIA. However, in the long-term, baseband-integrated applications processors will gain market share and NVIDIA may have to acquire a baseband company in order to effectively compete.”