After Apple Snubs Them, NVIDIA Prepares For The Worse [After Being Taken Out Of Default iMacs, NVIDIA Tells Wall Street To Expect Poor Revenues]

Tweet

Graphics manufacturer NVIDIA got some bad news yesterday. The new Apple iMacs unveiled saw Apple going with ATI graphics cards as the cards in the default configuration of the iMac at every size. A big change, surely, as they’ve been going with NVIDIA lately for the past few cycles, at least. Possibly (un)related to that – NVIDIA today warned Wall Street that it’s revenue would be lower in Q2.

According to the Wall Street Journal, NVIDIA revised its Q2 revenue estimates, lowering them considerably. Big Green cited weak consumer spending on their latest graphics card processors – and we assume they’re talking about the recent GeForce 400 series. Previously, NVIDIA had estimated it would make $950 to $970 this Q2. Now, they’re predicting revenues of just $800 to $820 million.

In addition to the weakened consumer market, NVIDIA also blamed the volatile cost of NAND memory – which is in constant flux due to the manufacturing uncertainty (read: Foxconn suicides and price hikes) in Asia. NVIDIA said that because of the high-cost of RAM, consumers were going with cheaper NVIDIA cards, or cards from ATI.

NVIDIA’s earnings report is due August 12th. No word on how this will affect their upcoming graphics card offerings.