Feeds

Nvidia CEO: Android 'the most disruptive operating system in decades'

Jen-Hsun Huang loves Google's green robot thiiiiiis much

Providing a secure and efficient Helpdesk

Nvidia cofounder, president, and CEO Jen-Hsun Huang is a big, big fan of the Android operating system – a fact that he made abundantly clear when speaking with analysts and reporters after announcing his company's financial results for the third quarter of its 2014 fiscal year on Thursday.

"Android is the most disruptive operating system that we've seen in a few decades, in a couple of decades," Huang said.

"Android is not just about phones," he added, citing its appearance in not only smartphones, but also in tablets, set-top boxes, gaming systems, and all-in-one PC such as the HP's Slate21.

The Slate21, not coincidentally, is powered by Nvidia's quad-core Tegra 4 processor, revenues for which more than doubled from the previous quarter, helping Nvidia hit or slightly exceed analysts' expectations despite declining GPU sales in mainstream PCs. For the quarter just passed, Nvidia booked revenues of $1.054bn, resulting in an earnings-per-share of $0.20.

Tegra's success is closely tied to Android success, and Huang waxed enthusiastic about Google's operating system. "Android is probably the most versatile operating system that we've ever known," he said, "and has the benefit of also being connected to the cloud. And so the day that you turn it on, it's incredibly useful, with all kinds of applications already on it."

The Tegra 4 is also in Nvidia's Android-powered Shield gaming system, which Huang called "our initiative to cultivate the gaming marketplace for Android. We believe that Android is going to be a very important platform for gaming in the future, and to do so we have to create devices that enable great gaming to happen on Android."

Shield, however, won't be a big revenue driver for Nvidia. According to Huang, "Our investment there is modest, or expectations are modest, and our distribution is modest."

Expectations for Tegra sales, however, are not modest. When asked what would be the company's biggest driver of growth during 2014, Huang was unequivocal. "In terms of absolute dollars, I would say number one would be Tegra," he said.

Not that Nvidia's core GPU business is chopped liver. Nvidia's VP for investor relations Rob Csongor, also speaking on the call, extolled the popularity of PC gaming, where high-end kit such as Nvidia's new GeForce GTX 780 Ti bring in the bucks, helping keep the company's balance sheet in balance despite a slide in the PC market overall.

"PC gaming represents almost 40 per cent of the worldwide gaming market," Csongor said, "larger than console, tablet, or any other gaming markets." Nvidia's GPU gaming revenues were up 6 per cent year-to-date when compared to the same period last year, he said, and notebook GPU gaming revenues have doubled in the last two years.

Revenues from Nvidia's Tesla line of HPC accelerators also hit a new high, said Csongor, and the professional workstation Quadro GPU-card line posted record revenues as well.

"Visual computing is increasingly important to more and more markets," said Huang in a statement. "It's creating demand for GPUs and opening up large opportunities."

Those large opportunities, however, aren't seen by the Nvidia brain trust to sweeten the company's bottom line anytime soon – it predicts that revenues for the fourth quarter of fiscal 2014 will remain flat at $1.05bn, plus or minus 2 per cent.

It's that damn shrinking PC market that's hurting Nvidia, as it is nearly every other company in the industry. If Huang and his fellow execs are fortunate, however, Android will metastasize into the entire computing ecosystem and boost demand for Tegra.

Remember, Android is the "the most disruptive operating system" to have appeared in decades – possibly disruptive enough to bump a flat revenue stream upwards. ®

Bootnote

Android devices powered by Tegra may be be Huang's BFF, but Microsoft's Surface 2 running Windows RT on a Tegra 4? Not so much. "The vast majority of Windows on ARM will be Surface," he said. "The vast majority of everything else on Tegra is Android."

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
DVLA website GOES TITSUP on day paper car tax discs retire
Welcome to GOV.UK - digital by de ... FAULT
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.