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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

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!