Nvidia Tegra 3 To Negative Impact On Per Core Revenue For ARM

The introduction of new multicore ARM based processors may cause the average revenue per core to drop by as much as 54 per cent, from 24 cents to 11 cents according to a report published by an RBS analyst.

Didier Scemama however reiterated its "buy" rating for ARM holdings based on news reports pointing to the fact that Nvidia may cram more ARM cores for each system on chip prompting others do to the same and slash their products' time to market.

Although this may increase royalty and license revenues, it will depress earnings per core; however the increase in volume and average selling price will almost certainly more than make up for the drop.

The Tegra 3 - which is based on the Cortex A9 - has already been sampled to strategic partners and it is likely that the first Tegra 3 devices will be launched in the second quarter of the year.