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Last year, Nvidia failed to give Qualcomm a run for its money when it comes to smartphones, but the quad-core Tegra 3 chip made a splash in the market tablet, with big wins such as the Nexus 7, the Transformer line, and the Microsoft Surface.

According to a Wall Street analyst, Nvidia might not enjoy a similar success in 2013, with Google reportedly ditching the Tegra 4 SoC in favor of the more competitive Snapdragon S4 Pro.

Michael McConnell from the Pacific Crest investment firm has trimmed his estimates for the Santa Clara-based company after “supply chains conversations” indicated that Google has opted for a System on a Chip made by Qualcomm.

According to McConnell, Google chose the Snapdragon S4 Pro APQ8064 chip over Tegra 4 for two reasons – competitive pricing and a better integration with 3G/4G modem technology, which would allow the maker of the Nexus 7 to cut costs and simplify logistics.

McConnell also writes that the new Nexus 7 is scheduled to begin shipment in the second quarter of 2013, but it’s not clear if he knows that for a fact or if it’s just an educated guess.

This report ties in with previous gossip that suggested manufacturers are not very interested in the new Tegra 4 chip, despite the massive performance improvements over Tegra 3 that Nvidia promised. So far, we know about a few manufacturers that will be using Tegra 4, including Toshiba and Vizio.

The new Tegra 4 chip was revealed by Nvidia during CES, and features four Cortex A15 CPU cores and a powerful 72-core GPU, that is supposedly six times faster than the GPU on Tegra 3. Nvidia has not integrated cellular connectivity on Tegra 4, although the company does offer an “add-on” LTE modem.

We’ve reached out to Nvidia for an official comment, and we’ll update the post as soon as we get more info.

Bogdan Petrovan
Bogdan is the European Managing Editor of Android Authority. He loves tech, travel, and fantasy. He wishes he had more time for two of those things. Bogdan's phone is a Nexus 6P.