Oneslowz28
08-06-2010, 12:06 AM
Looks like Nvidia posted a decent loss this quarter.
Read the full article here http://www.semiaccurate.com/2010/07/29/nvidias-mistakes-catch-bottom-line/ .
If you read the release here (http://phx.corporate-ir.net/phoenix.zhtml?c=116466&p=irol-newsArticle&ID=1453347&highlight=), Nvidia states what we all knew was coming, that their Q2 revenue would crater. Nvidia says it will be down from an expected $950-970 million to $800-820 million. That is a nearly 20% drop, and it comes less than a week before the end of the quarter. It is astounding that that Nvidia financial folk didn't realize this before, even more so if you know their channel problems. It is almost like the company was trying to mislead investors, but such an honest company would never do that................
To make matters more problematic, Nvidia's entire line from $198 MSRP down, is obsolete. Last September, the first DirectX 11 graphics card was released, and by early 2010, ATI had a top to bottom DX11 lineup. Nvidia's cheapest DX11 card costs $199, and prices go up from there, a vanishingly small market segment in terms of units. This means they can only compete for 10% or less of the market with non-obsolete parts....................
If you recall, before the launch of the GTX470 and GTX480, Nvidia forced retailers to buy several junk cards for every non-obsolete card they wanted (http://www.semiaccurate.com/2010/03/23/nvidia-forces-garbage-those-wanting-gtx480s/). This is called channel stuffing, and from what we gather, it lead to an almost total stoppage in orders later in Q2. Nvidia knew this would happen, but they did it anyway to forestall Dear Leader from having to face the analysts with bad news during the company's Q1 call. Once again, the hope was that some miracle (http://www.semiaccurate.com/2010/04/14/samsung-dumps-nvidia-tegra/) would save them........................
To make matters worse, sources in both Santa Clara and the far east tell SemiAccurate that Nvidia is canceling wafer starts on 40nm. ATI can't get enough, the industry is on massive allocation, and Nvidia is giving up some of those precious wafer starts. Ironically, these excess wafers will probably go to ATI, a company who's products do not seem to be affected by those darn prevailing economic conditions or RAM fluctuations. Imagine that!.............
Read the full article here http://www.semiaccurate.com/2010/07/29/nvidias-mistakes-catch-bottom-line/ .
If you read the release here (http://phx.corporate-ir.net/phoenix.zhtml?c=116466&p=irol-newsArticle&ID=1453347&highlight=), Nvidia states what we all knew was coming, that their Q2 revenue would crater. Nvidia says it will be down from an expected $950-970 million to $800-820 million. That is a nearly 20% drop, and it comes less than a week before the end of the quarter. It is astounding that that Nvidia financial folk didn't realize this before, even more so if you know their channel problems. It is almost like the company was trying to mislead investors, but such an honest company would never do that................
To make matters more problematic, Nvidia's entire line from $198 MSRP down, is obsolete. Last September, the first DirectX 11 graphics card was released, and by early 2010, ATI had a top to bottom DX11 lineup. Nvidia's cheapest DX11 card costs $199, and prices go up from there, a vanishingly small market segment in terms of units. This means they can only compete for 10% or less of the market with non-obsolete parts....................
If you recall, before the launch of the GTX470 and GTX480, Nvidia forced retailers to buy several junk cards for every non-obsolete card they wanted (http://www.semiaccurate.com/2010/03/23/nvidia-forces-garbage-those-wanting-gtx480s/). This is called channel stuffing, and from what we gather, it lead to an almost total stoppage in orders later in Q2. Nvidia knew this would happen, but they did it anyway to forestall Dear Leader from having to face the analysts with bad news during the company's Q1 call. Once again, the hope was that some miracle (http://www.semiaccurate.com/2010/04/14/samsung-dumps-nvidia-tegra/) would save them........................
To make matters worse, sources in both Santa Clara and the far east tell SemiAccurate that Nvidia is canceling wafer starts on 40nm. ATI can't get enough, the industry is on massive allocation, and Nvidia is giving up some of those precious wafer starts. Ironically, these excess wafers will probably go to ATI, a company who's products do not seem to be affected by those darn prevailing economic conditions or RAM fluctuations. Imagine that!.............