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Q: Some reports say Nvidia isn't targeting smartphones and tablets with Tegra anymore. Has your strategy shifted?. Jen-Hsun Huang: The strategy has shifted, but that's not quite right. The reason for that is this: First of all, we see that mobile is not about phones only. One of the most important mobile devices is a phone, but mobile technology is revolutionizing [products] all over the place..It's going to revolutionize TVs. It's going to revolutionize, obviously, computers. But it's also going to revolutionize games and cars and all kinds of stuff. Our strategy is to go and focus our energy on segments of mobile where we can add the most value. The area where we can add the most value is visual computing, graphics, GPUs, etc.
In some phones, visual computing is important, but in a lot iphone case nordstrom of phones, visual computing is just not that important, So what we wanted to do was focus on No, 1, gaming, where we can add a lot of value, and we think gaming on Android is going to be important, We're going to focus on car computers where visual computing and supercomputing technology is really important to the future of cars, And then we're going to focus our energy on segments of mobile computing, segments of phones and tablets where computer graphics are really important..
Are those gaming-specific devices, or what do you mean?. Huang: A gaming-specific device certainly is one example. [Also] set-top boxes that are designed for gaming, tablets where they would like to highlight gaming. Tablets where instead of just highlighting the design, they'd also like to highlight the performance. That goes hand in hand with gaming processors as performance. If you want to build the Porsche of tablets or phones, we're a fabulous partner for that. That's why companies like Xiaomi like working with us. They're reaching out to a technology-forward fan base.
Does that mean we're not going to see Nvidia in smartphones? You earlier said gaining share in smartphones was a matter of releasing a processor, called Tegra 4i, that integrated 4G with your apps processor, Has that not iphone case nordstrom worked?, Huang: [Tegra 4i] wasn't that successful for us, I would say that when we first started this, we thought that bringing 4G to entry-level phones, mainstream phones, integrated with our apps processor would be a real opportunity, I think that the phone marketplace has commoditized really, really fast, It is not our strategy to go after commodity phones, It is not our strategy to go after mainstream devices, But our strategy is to focus on performance-oriented, visual computing-oriented, gaming-oriented devices where we can add a lot of value..
Of course, if I said these things three years ago, it would have sounded really strange. And the reason for that is because cars weren't really prevalent with computers inside and it wasn't a very large part of our strategy or a large part of our business. Now it's growing significantly; it's a large part of our business now. And you're seeing more and more Android compute devices, whether it's game consoles or gaming devices in China from Huawei or ZTE. You're seeing devices that are highlighting their gaming and performance capabilities much more.
People are recognizing [that in] the Google Play store, the No, 1 download is games, Now all of a sudden, there's a lot more discussion about Android as a platform for gaming..Just three years ago if I said these things, all people wanted to focus on was phones, Now we have a lot more pillars of growth in mobile, and we're just not going to go focus on mainstream phones, Why did Tegra struggle in smartphones?, Huang: Our focus as a company is still performance-oriented, The mainstream phone market commoditized so fast that really the..differentiators were price, And you can see the pressure that MediaTek is putting on iphone case nordstrom Qualcomm, and you can see the pressure that MediaTek is putting on Marvell and Broadcom and all of these companies, Because guess what? They're the lowest-cost provider, I think that for mainstream phones, there's one strategy that really works right now, which is price, That's not our differentiator, That's not what we do for a living..
Will there be a Tegra 5i or whatever you would call a chip that integrates 4G with an apps processor?. Huang: We don't talk about future products, but I also haven't talked about T5i. You delayed Tegra 4 for Tegra 4i. Did that turn out to be a mistake? Did you miss this whole design cycle?. Huang: I would say that Tegra 4i didn't pan out. We learned a lot in the process. But there are many things in our company that didn't pan out. That's OK. If you want to be an innovative company, you have to fail.
Look, we built a great chip, LG's shipping it in the rest iphone case nordstrom of the world outside the United States, It's a fantastic processor, But from a business strategy, it wasn't a success, So I learned a lot from it, It's OK, I'm glad I did it, and now we're moving on, So what did you learn?, Huang: I think that I learned we are not a commodity player, Going after something that starts with mainstream should have discouraged us, At the time, it looked like our 4G solution was quite far ahead of the market..But that window's closing very quickly, We're just not a cost player..