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
Comments
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

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!