Poor Turing RTX sales dampen Nvidia’s predictions

Following Intel and Apple, Nvidia also blames China for poor sales.

Nvidia’s shares plummeted after the company said it expects much lower Q4 earnings than previously estimated, blaming the new RTX (Turing) graphics cards as a deadweight for the lack of profit.

Nvidia’s preliminary expectations for revenue for the 4th quarter – until the end of January this year – amounted to $ 2.7 billion (175.5 billion rubles), but now the company publishes a moderate figure of up to $ 2.2 billion (about 143 billion rubles ). The $ 500 million cut in projected earnings is a severe downturn, followed inexorably by a 15% drop in the company’s stock.

According to MarketWatch, the company said in a press statement that revenue from gaming and data centers also fell short of expectations.

On the gaming front, the manufacturer confirmed that “some high-end graphics cards” from the new Turing series are not selling as well as planned.

Nvidia continues to argue that Turing graphics cards deliver “a revolutionary leap in real-time ray tracing performance powered by artificial intelligence,” but notes that some buyers will wait for prices to drop along with widespread adoption of ray tracing technology in games – before buying. RTX video cards.

Without a doubt, most gamers are dumbfounded by the asking price when you consider the price tag of the flagship RTX models.

To outline the perspective, the manufacturer’s version of the GeForce RTX 2080 Ti (Founders Edition or FE) comes for $ 1,199 (RUB 78,000 + VAT), even the original RTX 2080 will ease the wallet of the average gamer by $ 799 (RUB 52,000 + VAT).

The latter is strikingly more expensive than the previous generation GTX 1080, the pricing of the video card started at $ 549 (36,000 rubles + VAT), although this price tag can hardly be called affordable.

CHINA’S DESTROYING FORCES

The graphics card maker also noted that “deteriorating macroeconomic conditions, especially in China, are impacting consumer demand for Nvidia gaming graphics cards.”

As a result, the negative but pervasive economic impact of the international market has played a role, highlighting China as the main weakness in Nvidia’s sales – which is interesting, as Intel previously blamed China for slowing sales growth as the main reason that the processor manufacturer did not keep up with performance. financial results for the 4th quarter.

As if that weren’t enough, Apple pointed the finger at the economic weakness of the Chinese market earlier this month, warning that iPhone sales would be weaker than expected. One gets the impression that China is now having a tangible negative impact on the entire technology industry as a whole.

Somewhat more cynical users might assume that the US hardware market has found a handy scapegoat.

Returning to the data centers, the manufacturer said that the chain of deals that were supposed to be closed did not actually come to an end by the expected date.

Nvidia CEO Jen-Hsun Huang commented, “The fourth quarter was an unusual, unexpectedly turbulent and disappointing financial quarter.”

Here are the best graphics cards you can buy in early 2019.