However, it is worth noting that the report comes from Digitimes and its “upstream supply chain” sources, which have a chequered track record – and that’s putting it mildly. Despite the less than reliable source, the report makes sense.
Although Nvidia got a few fancy design wins for flagship tablets, Tegra 4 isn’t getting much attention in the fastest growing segment of the tablet market, in 7- to 8-inch no-frills tablets. The chip is too pricey for makers of budget tablets, who are turning to Chinese SoCs instead.
We don’t know of any Tegra 4 design wins in the sub 10-inch space and if that doesn’t change volumes won’t be spectacular, as 10-inch high-end Android tablets don’t sell in huge numbers. What’s more, there are practically no Tegra 4 phones, either. Basically even if Nvidia can get more design wins for the next generation chip than it did with last year’s Tegra 3, that won’t automatically translate into higher volumes. Tegra 3 ended up in several high-volume devices, such as the HTC One X, LG Optimus 4X and Nexus 7.
This year Nvidia might end up with more high-end tablet designs and more design wins in total, but ship fewer chips in the process. It’s worth noting that Tegra 4 won’t be used in the new Nexus 7 and that HTC and LG have chosen Qualcomm as well.