Needham: News of Nvidia losing Apple’s notebook business is beaten to death

ZAGG Deal!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.”

Full article here.

9 Comments

  1. Nvidia’s answer to the inevitable integration of the GPU onto the processor was the Tegra, dual-ARM + GPU solution. Unfortunately, Microsoft and not Apple adopted the Tegra.

    Nvidia has a niche in supercomputer processing at the point, and will do well there for a while, but the handwriting is on the wall. Just like the FPU and MMU before it, the GPU will be integrated onto the processor and those GPU vendors that can’t provide a single-chip CPU/GPU solution will perish.

  2. It’s a win for Intel in the competition with Nvidia. While Intel can put a GPU in their CPU, Nvidia does not have a place to put a GPU. It was a writing on the wall and just a matter of time for Intel to manage to integrate northbridge on one die.

    Auch … $100M business loss. There is not much Nvidia can do but to get out of this business.

    In less then 6 years similar fate for ARM. Intel is focussing on handhelds and once they catch up with power saving architecture their at least 2 node process advantage will get them Apple win. I can’t see a a way ARM (TSMC) to catch up in process technology.

  3. “Gill estimates that of Nvidia’s $150 million per quarter in chipset revenue, $100 million comes from Apple,”

    Wow o_O That is 2/3 of their business. So they basically do what ever Jonathan wants..

  4. I will only ever buy computers with discrete GPUs (or the option of adding them, at least). Nvidia makes great video cards, but perhaps more importantly, great video card drivers. Of course, that only matters to those of us with Boot Camp or PCs (or both).

    Regarding GPU drivers, I don’t need any more BSODs, and I certainly don’t understand why I need an ATI/AMD logo sitting in the Windows Notifications area simply because I have an ATI/AMD video chipset and drivers installed. Stupid ATI Catalyst.

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