MSI To ATI?

Dave Baumann

Dave Baumann

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http://finance.yahoo.com/mp#nvda

8:34AM NVIDIA estimates trimmed at FBR on large design loss; target $11 (NVDA) 12.57: Friedman, Billings, Ramsey has learned that NVDA has lost a large design win at Micro-Star (one of its largest customers) to ATYT; firm now believes that other designs at Micro-Star are at risk, given that they had been an NVDA-exclusive customer; additionally, firm believes NVDA's new GeForce FX line will ramp more slowly than expected due to low yields on both discrete and board-level products; trims FY04 rev/EPS ests to $1.80 bln/$0.61 from $1.83 bln/$0.63 (consensus $1.82 bln/$0.59). Price target is $11.
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I guess this is the effects of the GeForce FX deley. I don't think MSI will become ATI only as I've heard that more board vendors are looking more to multiple supplies. If a large one like MSI is going to do it, it could spur on others to follow a similar path.
 
So, um, where's all the "One late / bad product from nVidia isn't going to mean much" folks? ;)

Granted, this isn't necessarily (probably isn't) "just" the result of the underwhelming NV30. It may be an indicator that the entire FX line-up (product performance, price, expected availability, or combination of one or more) doesn't look as good to MSI as ATI's line-up.
 
Oh, and I guess this explains that Poll a while back...

http://www.beyond3d.com/forum/viewtopic.php?t=4284&highlight=msi+poll[/url]
 
Tech. aside. I would have to think that the cost of making the FXultra is quite high and perhaps even the non ultra. That being said, since Nividia is making the boards and supplying them (FX ultra) what possible margin could they be making. If they make a good margin of profit it will come at the expense of Nvidia subsidising the cost and possibly selling them for a loss. This is not something any company likes to do. On the other hand if Nvidia prices the board high enoogh to recover their COM and R&D it does not leave much profit for thier partners and this may cause some of them to switch to ATI chips. Could you blame them. If you could sell a card that performs better (or thereabouts) and makes you more money wouldn't you. In the end it seems that the NV30 puts Nvidia in a no win situation so maybe they will cancell it.


edit: rephrased
 
Take this for what it's worth. In the thread about this @ nvnews, a guy claimed that he called MSI (he also claims to have a few thousand invested in both nvda & atyt) & that MSI advised that this is not true.

Disclaimer: I too am an atyt shareholder.


However, as an amd investor, I know too well, what the power of tech analysts can be.
 
A little bit more detail on this:

http://biz.yahoo.com/djus/030228/1155000456_1.html

The design win was for products produced for Medion, a German retailer, Rothdeutsch said, adding that he believes other Nvidia designs at Micro-Star are at risk, as Micro-Star had been an exclusive Nvidia customer.
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So Dave seems to be on the right track. It appears one of MSI's cusotomers, Medion, said something along the lines of: "Either you supply us with ATI boards, or we'll find someone who will."

So, MSI will start building ATI cards for Medion. As Dave and the articles are suggesting, now that MSI is dealing with ATI, this could open the door for other MSI customers to also request ATI parts....
 
If this is true, it's a major loss for nVidia.
I think MSI does the Creative nVidia cards and Creative is the top seller in my country. For us this could be a huge revolution in the videocard market.

Sorry for my poor english......
 
to be clear again...

It doesn't appear that MSI stopped making nVidia cards.

MSI makes cards for several vendors. One of them is Medion, which is apparently pretty big in Germany? (Don't know who Medion makes cards for, or if that's a big retail brand in Germany.)

If Creative gets their cards from MSI, they can still get nVidia cards.

HOWEVER, now that MSI has a relationship with ATI and is building AIT cards, it's much easier for any of MSIs customers (including Creative) to say "me too!".

This news more or less opens a big door for ATI, but doesn't yet indicate masses of customers stepping through it....yet.
 
Joe DeFuria said:
A little bit more detail on this:

http://biz.yahoo.com/djus/030228/1155000456_1.html

The design win was for products produced for Medion, a German retailer, Rothdeutsch said, adding that he believes other Nvidia designs at Micro-Star are at risk, as Micro-Star had been an exclusive Nvidia customer.
Click to expand...

So Dave seems to be on the right track. It appears one of MSI's cusotomers, Medion, said something along the lines of: "Either you supply us with ATI boards, or we'll find someone who will."

So, MSI will start building ATI cards for Medion. As Dave and the articles are suggesting, now that MSI is dealing with ATI, this could open the door for other MSI customers to also request ATI parts....
Click to expand...

Ouch !

Medion is one of the big OEM's in germany. They supply PC's to mediamarkt, Aldi and others. I have even heard that they are number one in germany, but I'm not sure.
 
They are a big OEM in the UK too, selling at PCWorld, Dixons and Curry's.
IIRC Medion for all intents and purposes = MSI
 
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