Users buying tablets in place of cheap PCs

The cannibalization of PCs by tablets is not just a figment of your imagination, and can be substantiated by hard figures. Well, at least according to the numbers made public by Nvidia at a conference call with analysts. Nvidia is a chip maker that churns out GPUs, Graphics Processing Units, as well as mobile processors used in tablets and smartphones.

Nvidia Chief Executive Jen-Hsun Huang pointed to how 30 percent of Nvidia's revenues now come from non-PC chips, which is a huge increase from 3 percent just three years ago. Seen in that context, it would appear that the popularity of tablets is increasing at the expense of the PC.

Huang believes that consumers who have previously opted for cheap PCs will instead buy a tablet. "A great tablet is better than a cheap PC," says Huang. Of course, an alternative reason could be users are increasing adoption of tablets to complement their PCs.

Huang considers the release of Windows RT to be a monumental event for the PC industry. The company is making a renewed push into PCs with the release of Windows RT. As noted by CNET, Microsoft's Surface tablet uses its Tegra chip, as do Windows RT devices from Lenovo and Asus.

For more:
- check out this article at CNET

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