Nvidia to Lower Retail Prices for PC Graphics Parts
(Update3)
By Sean B. Pasternak
Santa Clara, California, April 24 (Bloomberg) -- Nvidia Corp., one of the two
main makers of chips that improve computer graphics, will drop prices on
components sold in stores and online as competition with ATI Technologies
Inc. intensifies.
Nvidia wants to increase retail sales, which accounted for about 15 percent of
its $735.3 million in revenue last year, said company spokesman Brian Burke.
Through its purchase of 3dfx Interactive Inc. this year, Nvidia ranks second
behind ATI in the U.S. retail market, according to Reston, Virginia-based
research firm NPD Intelect.
Santa Clara, California-based Nvidia is trying to replicate its success in the
market for chips sold to makers of desktop PCs, where it overtook Markham,
Ontario-based ATI last year. Nvidia has 48 percent of the desktop market,
compared with ATI's 34 percent, according to Tiburon, California-based
industry researcher Jon Peddie Associates Inc.
``Nvidia has the operating leverage and the business model now so they can
compete more aggressively,'' said David Hodgson, an analyst at Dundee
Securities Corp. in Toronto. ``They're just being cognizant of the fact that
greater share in the retail channel is important.''
Nvidia shares fell $5.83, or 7.1 percent, to $76.54 in U.S. trading.
Nvidia includes its graphics chips on boards -- a type of processor consumers
purchase to install in their computers -- made by Germany's Elsa AG, closely
held Asus and others, which will be sold for a suggested retail price of $399.
That's about a third cheaper than originally projected, spokesman Burke said.
Other boards will sell for $129 and $299, 28 percent and 38 percent cheaper
respectively than previous versions.
ATI sells versions of its comparable series of boards under the Radeon name
for retail prices ranging from $99 to $229, a company spokesman said.
The price decrease won't affect component sales to PC makers, Burke said. |
