NVIDIA Not Going To Sell Netbooks, Here’s Why

Earlier today, there were reports that NVIDIA would sell Netbooks under its own brand, after having them manufactured by another company. Websites cited an “NVIDIA spokesperson” saying that the Netbook would be out in time for the holiday shopping. The rumor also included a bundle deal with wireless carriers and the computer would be priced for about $250.

I don’t put much faith in this rumor for one simple reason: economics. NVIDIA is in the business of selling high-margin products (well, as high as they can, at least) and clearly the notebook market does not fulfill this objective. They are better off finding ways to make the Netbook trend work in their favor instead of thinking of news ways to shave another buck on a computer in a low-margin business. I don’t know how Tegra is truly priced, but I guess that it is in the $12-$25 range, and if I’m right, this is a very good price for such a small chip.