It's no secret that a sinking market share doesn't help revenue. Fittingly, not long after seeing Mercury Research's graphics market data, we noticed that Nvidia has issued a "business update" for its second-quarter results. The message? Q2 revenue will be lower than expected.
Instead of the previously predicted $950-970 million, Nvidia says revenue for its ongoing fiscal quarter, which will end on August 1, will only add up to $800-820 million. That would admittedly still be an improvement over last year, but not a very big one. Here's what Nvidia has to say for itself:
The revenue shortfall occurred primarily in the consumer GPU business, resulting from increased memory costs and economic weakness in Europe and China. The increased solution cost of discrete GPUs led to a greater-than-expected shift to lower-priced GPUs and PCs with integrated graphics.
Everything from the Greek banking crisis to allegedly more popular integrated graphics is to blame, according to Nvidia. Yikes!
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