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NVIDIA will lose $ 150-200 million on defective laptop chips
NVIDIA has acknowledged the existence of problems with some early series products that were “in significant quantities” used in notebooks.
The exact cause of the defects is not named, but the company associates them with the materials used in the cases of the microcircuits and the temperature conditions in some laptops. In simple terms, poor-quality plastic and poor cooling did their job.
To deal with the problem, NVIDIA released a driver that forces fans to turn on to reduce the “heat load” and sent it to the laptop manufacturers.
However, the driver is a driver, and the losses associated with the replacement and repair of defective products, including graphics processors and system logic kits, are estimated at 150-200 million. Doll. Interestingly, no specific product models are named.
As a result, the company was forced to adjust its forecast for the second quarter results downward.
In addition to losses associated with low-quality products, NVIDIA’s revenue in the second quarter was affected by pricing pressure from a major competitor and delays in new products. In other words, AMD’s plans to increase its discrete desktop graphics market share by 10% in a year looks more than reasonable.