NVIDIA Might Lose $150-200 Million Because Of Bad Notebook Chips
NVIDIA admitted there were issues with certain earlier GPU and MCP products, large quantities of which were used in notebooks.
While no exact reason of defects was stated, the company attributed them to chip package materials and to temperature modes of some notebooks. In other words, low-quality plastic and unsatisfactory cooling did their job.
To sort this out, NVIDIA released a special fan driver for notebook manufacturers that was called to reduce temperature.
Still, the losses related to repair, return, replacement, etc. are estimated at $150-200 million. It's interesting that the company hasn't specified, which products exactly have issues.
As a result, the company was forced to correct its Q2 revenue forecast to a lower number.
Aside from losses caused by low-quality products, NVIDIA's Q2 revenue was negatively affected by price pressure of its key rival and new product delays. In other words, AMD's plans to increase its share of the discrete graphics market by 10% within a year are more than reasonable.
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