NVIDIA is expected to face some rough rides in the near future, as the chip maker is reported to have recorded order cuts from some of its major partners, including Palit Microsystems. According to the most recent details in the industry, the Santa Clara, California-based graphics maker has seen an order cut for the first quarter of 2009 of approximately 400,000 units of the company's GeForce GPUs. This is expected to affect the chip maker's financial performance in the first fiscal quarter of this year.

 

It appears that the effects of the worldwide slow economy are further expanding, as companies see a considerable drop in consumer demand, which basically creates overstock, making it difficult for major retailers to deal with expenses. Such is the case with Palit, which still has an overstock of NVIDIA-based graphics cards, for which reason it has to cut orders for more NVIDIA graphics processors. The company is reported to have cut orders for approximately 400,000 NVIDIA GPUs, a considerable loss for the graphics chip maker.

 

Late last week, NVIDIA announced that it expected a lower Q4 revenue, reducing its revenue forecast by a considerable 40 to 50%. The complete report of the company's financial results for the past year is expected to emerge on February 10, when the chip maker is said to release additional commentary.

 

Digtimes reports that, aside from Palit's considerable order cut, other major graphics card makers, including ASUS, MSI, Gigabyte and PC Partner, have also reduced their NVIDIA-made GPU orders. The chip maker is estimated to have lost orders for close to 1.5 million GPUs, a loss that is likely to affect the Q1 financial performance of the company.

 

Despite the fact that the chip manufacturer succeeded in reclaiming the top spot in the graphics card sector, with the release of the new GeForce GTX 285 and GTX 295, the two graphics cards are still far from a general adoption.