Financial muscle sets to shake up the sector.
Much like the digital audio player industry, the graphics card sector is a dog eat dog world of fast product cycles, low margins and fierce competition so why would anyone want to get into it? Personally I have no idea, but perhaps you should ask Foxconn.
Having been a components provider of substance for many years, the company has quickly established itself as a respected name in the motherboard market and plans to use its resources to shake up the graphics world after inking a deal with nVidia.
To be fair, we knew for a while Foxconn was planning this move but now we have the first official products and – predictably – it is seven series all the way. Every flavour of nVidia’s latest and greatest will be catered for (and that’s a lot!) with Foxconn’s range stretching all the way from a GeForce 7950 GX2 down to an entry level 7100 GS and the twelve other steps between them.
Pricing hasn’t been leaked yet but with the monstrous resources Foxconn has at its disposal – the company turned over in excess of $16bn in 2004 and has over 130,000 employees – we could be about to witness new lows. Certainly smaller players will be feeling the heat of this announcement since their VGA boogieman just turned up to give them nightmares…