Feeds

Texas Instruments sounds alarm on 3G

Someone's cutting back

The essential guide to IT transformation

Texas Instruments, one of the world's largest semiconductor manufacturers, is sounding the alarm over the demand for 3G phones.

The company said one of its major clients had sharply cut back on its orders. Though TI declined to name the customer, analysts are speculating it is Nokia, TI's largest customer for mobile chipsets.

As a result, TI cut its financial forecasts for the first three months of the calendar year. It now expects to make revenues of between $3.21bn-$3.35bn, down from its prior forecast of $3.27bn-$3.55bn.

"The wireless market and the revenue in that market have often fluctuated on a short term basis," said Ron Slaymaker, vice president and manager of investor relations for TI. "Very recently we received pretty significant downward revision in wireless customer demand."

He tried to remain upbeat, adding: "The long term trend towards smartphones represents a great opportunity for Texas Instruments given the strength of our position with OMAP applications processors."

OMAP processors are proprietary chips designed by TI to run multimedia applications on mobile devices.

TI's downgrading of its forecasts have had ramifications for many other companies in the mobile sector. Nokia's shares tumbled six per cent on TI's news, while the European technology share index slipped two per cent. The shares of rivals Infineon and ST Micro both also fell.

The downgrading only seems to have affected TI's 3G prospects, according to Slaymaker. He said that sales of its entry-level products, which it typically sells into emerging markets, should still meet its earlier expectations.®

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
EE plonks 4G in UK Prime Minister's backyard
OK, his constituency. Brace yourself for EXTRA #selfies
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.