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Friday, 11 November 2011 16:25

Tegra 3 costs more than $15

Written by Fuad Abazovic

T3 super phones in Q1

Analyst Romit J. Shah from Nomura Securities Co. Ltd, Research Division asked Nvidia about the price of Tegra 3 and of course Nvidia didn’t disclose its entire pricing policy. Romit implied that OMAP 4 sells for $12 to $14, while Tegra ranges from $15 to $25.

Jensen was a bit more specific in his answer: “I don't know which Tegra is $15. But there are no - if we're still talking about Tegra 3, there is no Tegra 3 that's $15. It's higher than that.”

Jensen continues hat Tegra 3 and OMAP4 aren’t targeting the same generation of devices and not targeting the same market. Nvidia is very clear that Tegra 3 is top of the offer of high performance tablets and super phones while OMAP4 is more like a strong competitor to Tegra 2 chips.

Jensen said that Tegra 3 has a 10 dollar Bill of Material (BOM) system reduction cost and he even elaborated saying that since it needs less power than Tegra 2, it needs fewer power components that are usually expensive. This is how Tegra 3 can save about $10 in product BOM, but we believe Tegra 3 costs some $10 more than Tegra 2 and eventually you end up at very similar cost for both generations.

Tegra 3 comes with 32GB Transformer prime for $499 and should be selling by December. Jensen also talked about the claim that phones based on Tegra 3 are coming in Q1.

“Well, we're working on these devices as hard as we can, but we're not the device makers. And so my expectation is that Q1 is an appropriate time for most of these (phones)-- for many of these devices to come to market. But we'll get there as quickly as we can,” he said.

Of course, quad-core processors are better at multithreaded applications and some examples are website loading, gaming that is multithreaded on both PCs and consoles, and now on phones. The analogy is simple, four is better than two and four threads with the fifth companion core than can save you some power when you don’t need a lot of performance.

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