Rumors that Nvidia is losing Apple’s graphics processing business is forthcoming MacBook notebook lines, “Rajvindra Gill with Needham & Co. remarks this afternoon that the whole matter is basically a dead horse,” Tiernan Ray blogs for Barron’s. “‘This is not news,’ Gill tells me this afternoon by phone. ‘The fate of the chipset business has been telegraphed for some time now by management and by the Street.’ Chipsets are a business Nvidia is exiting, so it’s really all about the pace of the run-off of that business.”
“Gill estimates that of Nvidia’s $150 million per quarter in chipset revenue, $100 million comes from Apple,” Ray reports. “He sees sales at Apple falling to $50 million in Q1 of next year, as MacBooks are released with Intel’s (INTC) Sandy Bridge processor. However, Nvidia will still get about $50 million per quarter from the MacBook Air, which was released this past fall and which likely wouldn’t have a major redesign before next fall.”
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