) has already confirmed its plans to develop an Android-based
handheld gaming device. Now the company is rumored to be
interested in manufacturing smartphones and tablets for other
corporations. According to
(which translated a report by Russian tech site
), NVIDIA is investigating the possibility of producing
smartphones and tablets as a so-called "white-label"
manufacturer. White-label companies typically produce items for
one or more partners, who then place their own names on the
If the report is accurate, NVIDIA hopes to begin the design
and manufacturing process by May or June, leading to a fall or
winter ship date.
It is not yet known which companies may be interested in
buying NVIDIA's creations.
Another option could be lesser-known Chinese corporations that
are trying to break into the global market. They could use the
NVIDIA name -- which would likely be highlighted in some capacity
-- to bolster their own brands.
) could also provide NVIDIA with some interesting opportunities.
The retailer intended to break into the tablet business by
applying the GameStop brand to an existing device. Those plans
did not pan out, however, as the company decided to sell
refurbished tablets instead.
Without a key partner (or several partners) that want NVIDIA's
items, it is unclear how the company may proceed with this
venture. NVIDIA could simply push ahead and send the items
straight to retail.
Until the company has produced an actual device, it is
difficult to say how well it could perform. However, there is no
denying that tablets and smartphones are two of the toughest
industries in technology. Apple (NASDAQ:
) has already taken a large part of the tablet market with the
iPad and the iPad Mini. The two devices have sold
more than 120 million units
worldwide. With so many other corporations already fighting for
the remaining market share, NVIDIA might find that it is
impossible to compete.
The same could be said for the smartphone industry, which is
arguably the most crowded in the world. In both cases, NVIDIA is
faced with a series of obstacles it may not be able to
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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