Where are we heading?

Despite Microsoft’s anticipated release of new version of Windows on October 26, 2012, the PC sales are either stagnating or heading down.  Instead sales of tablet computers and smartphones are on the rise and expected to supersede PC sales in terms of number of units sold.

The chip maker Nvidia used to sell graphics-processing units (GPU) to major PC makers for years and the saw the coming avalanche of the demise of the PCs.  They provided the chips that gave us the pictures on our PCs and desktops.  Now they are on the quest to capture the oncoming invasion of smartphones and tablets.  Its Tegra chip applies its knowledge gained from PCs and desktops to new tablets and smartphones.  Apple recently announced that it is using Nvidia chips on its new laptops.  On the other hand, Nvidia beat the Advanced Micro Devices (AMD) in the ever diminishing PC sales.  Tegra is used in Google’s recently released Nexus 7 tablet.  One version of Microsoft’s Surface tablet due to be released this coming fall will also use the Tegra chip.

Nvidia’s competition to capture the market share of tablet and smartphone will come from Qualcomm and Broadcom who are capable of undercutting the price.

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