News Nvidia's financials show Surface RT-shape hole

$300 mil short wow, People really were betting houses on Microsofts Surface RT selling 3-5million units. Gonna hazard a guess this will not be the last write down on computer parts related to the Surface that we see.

 

Talk about NOT putting all your eggs in one basket though. To lose $300m on such a big move as RT was and yet still come out 2.4% UP.

 

A drop in the ocean for such a large company. The main problem for them will be the Intel based Surface2, that won't need Tegra and people have been waiting for a full fat Win8 tablet for iPad money.

I wouldn't be to quick to dismiss the SurfaceRT after the price drop as reports of empty shelves at US retailers will pacify until Surface2.

 

Wont be a full a fat Surface 2 pro at ipad money though its just not going to happen. Unless Microsoft is going to lose money doing it. ( surface pro they were making around £100 on the uk launch price)

Surface RT is selling at a loss on each sold effectively good to get rid of unwanted stock but not so great if your trying to make cash on what your selling.

As for an Intel Surface will depend alot on Haswells availability for the pro and wether or not it can hit the thermal and power limits that Microsoft has requested.

Surface RT 2 if its made will be tegra 4 but after loosing the best chunk of $1bil they will not make as many this time and they will likely be priced a little cheaper.

The sad facts are that people have the tablet they want and now wont be buying another one, Even Apple has had reduced sales figures on the tablets they sell. I dout ill be buying another one as the current one just collects dust or is used as a familly web browsing device upgrading to a better one would not change its usage.

Heck an Ipad 2 is fast enough for 99% of people using a tablet for facebook, Email , Web browsing the 3 main uses.

 

Rumours are Surface2 won't be Tegra but Intel instead with x86 compatibility. That's been the biggest problem from day one has been legacy support to some.

I never had such problem myself and found the device miles better than my previous iPad or Tab2.

 

Actually even with the price cut it is probably breaking even at worst.

One can but hope.

 

Nvidia have said they are "working hard" on the second gen surface. Though that could just be say a gfx card and nothing more.

 

A drop in the ocean may be on paper. You explain that to Directors / Managers that the goon(s) in the company who went with the windows RT project and then the people who agreed and financed it. And explain to the shareholders whose price has fallen aswell.... It might seem nothing but 300mil in any western currency is a lot of sales to lose!

 

Well, it's not as if a component manufacturer can go: "No, we won't sell you our components because we think that your product is not going to sell well". nVidia actually sold all those Tegra 3's that are in all the Surface RT's. They got paid for them. There just wasn't as much follow-up business from that corner of the market as they had hoped.

But the chip is there, it is proven and it will over time be used in cheap low power devices.