Hewlett-Packard Company (HPQ) Needs Its New Tablet to Succeed — and So Does NVIDIA Corporation (NVDA)

Page 1 of 2

Hewlett-Packard Company (NYSE:HPQ) announced this week that it’s getting back into the mobile game by working on a high-end Android-based tablet. NVIDIA Corporation (NASDAQ:NVDA)‘s been unofficially named as the processor supplier for the tablet, which would be the first device to use its Tegra 4 chip. Both have much to gain from the tablet — if HP can make it in the mobile world.

Hewlett-Packard Company (NYSE:HPQ)New tablet, new opportunity
HP set up its new mobility division late last year to focus on consumer tablets and other mobile offerings, and it looks like this new announcement is the company’s first fruits of the division. The new tablet will push HP into new mobile territory, something it hasn’t excelled at in the past.

When HP launched its TouchPad two years ago, the company hosted a huge press event to drum up excitement, but then launched the product six months later. All the press attention had died down and the TouchPad went on sale with no real interest from consumers. Soon after, HP canceled the TouchPad, along with the webOS running it, and sold off the remaining tablets for less than a $100 each.

But the newest tablet isn’t just an opportunity for HP; it’s also a boost for NVIDIA as well. Last month, NVIDIA showed off its new Tegra 4 chip at the Consumer Electronics Show in Las Vegas. The company claims the new Tegra chip is the world’s fastest processor, but it’s not expected to show up in any tablets until later this year.

NVIDIA isn’t new to the mobile processing world. The current Tegra 3 processor can be found in notable mobile devices like the Motorola Solutions Inc (NYSE:MSI) MMI Droid X2, HTC One X, Google Inc (NASDAQ:GOOG)‘s Nexus 7 and the Windows RT Surface tablet. But launching the new HP tablet with a brand-new NVIDIA processor may push both companies further into the right direction. HP needs to compete in the mobile space, and NVIDIA wants to grab more mobile processing market share.

NVIDIA currently comes in second place in tablet processor market share with 17%, behind Apple Inc. (NASDAQ:AAPL)‘s 53%. NVIDIA’s Tegra Group, which focuses on its Tegra chips, grew 90% year-over-year this past quarter and brought in $208 million in revenue. But some analysts are worried that NVIDIA won’t be able to gain more mobile market share in such a competitive environment.

The (possible) road ahead
NVIDIA already has more than a foot in the tablet processor door, but Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NYSE:AMD), and QUALCOMM, Inc. (NASDAQ:QCOM) aren’t sitting idly by while mobile explodes. NVIDIA needs to grow its tablet and smartphone chips sales to ensure it can stay ahead of the pack. With PC juggernaut like HP using a Tegra chip, NVIDIA may find a good partner going forward. The PC maker knows how to sell products. HP sold more than 56 million PCs — a 16% market share — in 2012. But as HP has already learned, mobile is a completely different space.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!