Nvidia Warns of Sales Shortfall (WSJ)

This is purely informative, not to draw the ire of any particular group. If it irks you, PM me, lets just keep this a clean thread :). Thanks!

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By FRANCESCA FREEMAN

Nvidia Corp. lowered Wednesday its second-quarter revenue estimates, amid weak consumer spending that weighed on sales of its flagship graphics processing chips.

The Santa Clara, Calif., company, which specializes in chips that help computers render moving images more effectively, said revenue for the quarter ending Aug. 1 would drop to $800 million to $820 million from the previous forecast of $950 million to $970 million range.

Nvidia blamed its lowered expectations on increases in the cost of memory, a vital component of their products, and economic weakness in the European and Chinese markets. Some customers were moving to lower cost graphics chips, which eats into the company's revenue, or buying computers with less expensive products from competitors.

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link (Subscription required)

what im reading is that nvidia wishes they had more new chips in the low cost market

What I'm reading from the quote is that nvidia failed with fermi and didn't sell enough G92 cores to make up for it.

http://www.eetimes.com/electronics-n...enue-shortfall

Probably the same article as what the WSJ has, just no sub. needed.

Interesting quote in it:

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Shares of Nvidia slipped 3 percent in trading Wednesday to close at $10.13. The stock plunged further in after hours trading following the revenue warning, trading below $9.50 late Wednesday.

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Nvidia blamed its lowered expectations on increases in the cost of memory,

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Rambus on their back, eh?

Well guys, we're f***ed, we only made a revenue of 800 million dollars, how are we going to feed our families??!

Boohoo Nvidia, you get what you deserve (and much more)

http://img413.imageshack.us/img413/751/gpumsq2.gif

if intel was smart they would buy them

And somehow i wont be amazed if they stil manage to get a quarterly profit.

For some reason even if Nvidia is getting spanked they stil make a profit.

@tbone8ty
Intel cant, Intel already has a huge market share due to their crappy IGP. So i doubt the authoritys would allow them to buy Nvidia.

@lkiller123
nah probably illegal price fixing. A few of them have already been fined a while ago. Just check the prices of memory in the past 12 months.

the 2GB ram stick for my laptop now costs twice as much as a year ago.

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Originally Posted by tbone8ty

if intel was stupid they would buy them

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fixed.
http://www.xbitlabs.com/news/video/d..._Analysts.html

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Originally Posted by Starscream

the 2GB ram stick for my laptop now costs twice as much as a year ago.

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QFT! DDR2 now costs what DDR3 costed last year.

@SimBy's market share picture
units is the worst way i think to look at market share, if amd only sold 5770s and below and nvidia did 470s and above, it wouldnt be the same story. the only thing units means is how many PCs will be hurt when bad drivers exist (nothing against SimBy)

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Originally Posted by Manicdan

@SimBy's market share picture
units is the worst way i think to look at market share, if amd only sold 5770s and below and nvidia did 470s and above, it wouldnt be the same story. the only thing units means is how many PCs will be hurt when bad drivers exist (nothing against SimBy)

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Well of course, that's why you have unit share and revenue share. And that's why mix is important. But even taking that into account, Nvidia had horrific Q2. And that's why they warned. Nothing unexpected really when you consider AMD sold over 16 mil DX11 parts, while Nvidia sold few 100k. If AMD could actually meet the demand Nvidias Q2 would look twice as bad.

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Originally Posted by Manicdan

@SimBy's market share picture
units is the worst way i think to look at market share, if amd only sold 5770s and below and nvidia did 470s and above, it wouldnt be the same story. the only thing units means is how many PCs will be hurt when bad drivers exist (nothing against SimBy)

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Wel units sold is part of the market share. How many units got sold is one of the things share holders want to know.

Edit:
Units sold shows the overal picture. Not only how much you sold but also how much your competitor sold. In the end showing in which market segments you grew in and in wich parts you lost.

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Originally Posted by SimBy

If AMD could actually meet the demand Nvidias Q2 would look twice as bad.

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not really. if tsmc's capacity doubles then sales should double for both nvidia and ATi. nvidia already has a larger market share so the lack of supply would hit them harder.

also it should be noted that nvidia has other products besides geforce.;) the professional market is a huge source of income for them.

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Originally Posted by Starscream

Edit:
Units sold shows the overal picture. Not only how much you sold but also how much your competitor sold. In the end showing in which market segments you grew in and in wich parts you lost.

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i dont believe that. now that we have SSD hard drives that can cost a fortune, the number of units might go down (less raid setups), but the cost spent on drives can easily be double what it was before.

how does a 5970 get considered, is it one or 2 units? how about how many wafters are needed to produce a set quantity of units, (basically cost per mm2).
way to much unknown and all we know is a random count. just looking at the intel having a massive market share still, but those are tiny chips and almost cant even be counted as a 3d rendering card, lol.

i really do prefer revenue share since as a whole it does let you understand the growth of the market as a whole and how its divided out. units sold can only tell me how many gpus exist, but almost nothing about what kinds

This appears to be the result of lost consumer confidence which is no surprise. Fermi didn't close to live up to the hype and it took so damn long for them to get fermi quadro cards out.

Ha they were spot on about the memory part, Nvidia does lack memory on their cards, thats for sure!!!

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Originally Posted by tajoh111

This appears to be the result of lost consumer confidence which is no surprise. Fermi didn't close to live up to the hype and it took so damn long for them to get fermi quadro cards out.

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Dur.. no? All they've had for this quarter is 2 high end chips. 90% of their sales revenue comes from low end and midrange chips.. and they only got midrange chips a few weeks ago.

As if the entire market as a whole "knows" what enthusiasts know and have the same concerns and all magically know not to buy a certain product...

I think ATi is about to drop the prices of their HD 5000 series.

^THey would be retarded if they didnt....no way they can compete at the midrange sector. The 460 is just to good for the price.

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Originally Posted by Xoulz

I think ATi is about to drop the prices of their HD 5000 series.

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HEADLINE NEWS: COMPANY STRUGGLING TO STAY IN BUSINESS LOWERS PRICES EVEN THOUGH THE COMPETITION COSTS MORE AND WAS A YEAR LATE

don't invest in the stock market with that kind of prediction

ps: ATi doesn't exist

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Originally Posted by OverShocked

^THey would be retarded if they didnt....no way they can compete at the midrange sector. The 460 is just to good for the price.

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I hope they do since I'm looking at picking up one of the midrange cards pretty soon.

Buy NVDA if it goes below $6.00:D

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Originally Posted by OverShocked

^THey would be retarded if they didnt....no way they can compete at the midrange sector. The 460 is just to good for the price.

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GTX460 1gb sells in the $230.00 range. Nvidia can not compete if AMD drops the price of the HD 5850 to about $250.00. The die size of the Cypress is about 10% smaller and the overall costs for the rest of the board should be about the same. AMD also has mind share. 3 quarters of dominance helps quite a great deal. Nvidia will be loosing more market share this quarter. AMD has Southern Island hitting the streets before the end of the year. AMD has Northern Islands waiting for 28nm production. I expect AMD to maintain overall dominance for the next year. Looks like the only silver lining for Nvidia this quarter is that AMD could not supply its demand. Hope they send a thank you card to TSMC. Grey days still on the horizon for Nvidia.

The possible bright days are still far away for nvidia it seems. It probably won't get much worse from here on but it won't change for the better either is my guess at least until sometimes late Q1 or Q2 2011. ATIs SI could cause some more damage still though and then nvidia will probably need a good answer to counter ATIs 28nm part too, so the pressure is really high atm. AMD/ATI is really playing the cards correctly now, they are in charge and nvidia follows.