We’ve already heard rumors that this year’s Google I/O in May could bring with it a new Nexus 7 tablet, and so far those claims have focused on introducing changes like a thinner bezel and the move to a full HD 1080p screen. Now, an analyst report is suggesting that Google and ASUS could dump NVIDIA as the company behind the tablet’s chipset, instead moving to a Qualcomm-made component.
Pacific Crest’s Michael McConnell claims that Google and ASUS will likely move to a Snapdragon S4 Pro for the new Nexus 7, like the APQ8064 chip in the Nexus 4. While that won’t offer quite the same performance as newer A15-based designs, it should still represent a nice performance boost over the Tegra 3 in the current Nexus 7.
McConnell also estimates that something like ten million of these new Nexus 7s could sell between their launch and Q1 2014, meaning NVIDIA is liable to lose out on $200 to $250 million in potential sales. Considering what else we’ve heard about the company’s difficulty in securing homes for its new chips, this is all adding up to spell bad news for its SoC business.