According the Nvidia CEO Jen-Hsun Huang, Nvidia is not interested in normal smartphones and will instead focus their Tegra efforts on tablets and what is being dubbed “superphones”. Nvidia is mainly interested in devices that can take full advantage of the Tegra’s graphics capabilities such as gaming systems. Nvidia is also very interested in cars in which a demand for visual components are growing.
Nvidia briefly entered the budget smartphone market with their Tegra 3, which was in a number of devices from companies like HTC, Lenovo and Motorola. The chip that came after the Tegra 3, the Tegra 4, was a disappointing product, and hence Nvidia lost their hold on the market.
Nvidia is no longer willing to compete in the budget market with companies like MediaTek taking the lead. They’re also unwilling to compete in markets with single or dual core chips because the company can’t afford lower returns.
Source: PC World