The growing market of low cost $200 to $400 10" to 15" laptops is expected to cut into the sales of AMD and NVIDIA's mobile GPUs as they are forced to focus more on higher end models. That is a much smaller market and the margins generally favour the laptop vendor as opposed to the company providing the mobile GPU. This will be felt more strongly by NVIDIA as AMD's APU lineup will appear in the smaller and less expensive notebooks but will still have an effect on AMD's bottom line over the coming quarters. DigiTimes also mentioned that AMD's R9 390X is due out in the first half of 2015 and that both companies are currently reducing the price of their GPUs in the hopes of increasing their sales volumes on the desktop.
"Notebook vendors including Hewlett-Packard (HP), Dell, Lenovo, Asustek Computer, Acer and Toshiba, will launch low-cost models with CPUs with integrated graphics in the fourth quarter of 2014 and therefore AMD and Nvidia are expected to see demand for their discrete mobile GPUs decrease, according to Taiwan-based supply chain makers."
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