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Nvidia cuts prices on entry-level and mainstream processors
Charles Chou,Taipei; Jessie Shen, DIGITIMES [Thursday 16 June 2005]

Nvidia recently lowered the price of its GeForce 6200 with TurboCache by US$15, according to sources at Taiwan graphics-card makers. In addition, the company cut the price on its GeForce 6600 series US$5 and the prices for all parts from its GeForce 6200, GeForce FX5200 and GeForce MX4000 series were reduced US$1-2, indicated the sources.

The price cuts are aimed to drive market demand during the traditional off-season, as Taiwan-based graphics card makers are reporting sequential drops in their May shipments, sources at graphics-card makers commented.

However, the price cuts on its entry-level and mainstream chips may prevent Nvidia’s from reaching its earnings estimates for its fiscal third quarter, and rumors of the price cut have already damaged the company’s share price, according to TheStreet.com.

Nvidia reported strong results for the first quarter of fiscal 2006, which ended May 1, 2005.

In related news, next week Nvidia will open its branch office in Beijing, where it plans to introduce its SLI-supporting G70 graphics chip during the inauguration.

Rival ATI Technologies said that its market share in the China channel market has surpassed 50% from March, as a chipset shortage in the first quarter is easing, but in the OEM market, Nvidia claims it continues to maintain about a 60% share.

May graphics-card shipments (thousand units)

 

April

May

M/M

Asustek Computer

800

630

(21.3%)

Micro-Star International (MSI)

600

500

(16.7%)

Tul

260

220

(15.4%)

Gigabyte Technology

300

200

(33.3%)

Leadtek Research

240

154

(35.8%)

Source: companies, compiled by DigiTimes, June 2005.

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