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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 (opens in new tab) 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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.