Texas Instruments plans to exit the smartphone and tablet market

By on September 27, 2012, 8:30 AM

Texas Instruments is planning to pull out of the smartphone and tablet sector with ambitions to reach a broader market that they believe will be more profitable and stable. The announcement was made by senior vice president for embedded processing Greg Delagi during an investor meeting earlier this week.

Delagi said Texas Instruments wants to focus on embedded systems like those found inside automobiles. The company currently supplies processing solutions for some well known products like Amazon’s Kindle Fire and the just-announced Nook HD. The problem, however, is that they’ve been facing increasing pressure from rival Qualcomm. It also doesn’t help that industry giants Apple and Samsung have been developing their own chips instead of using ready-made solutions from TI.

Share value dropped nearly three percent following the admission but has since rebounded to less than one percent lower than pre-news pricing. The executive didn’t outline how the new direction would affect financial results which likely led to the fluctuation in share value. Delagi said it was too early to detail how the move would impact financials as they are still working on a strategy internally.

This uncertainty has left some analysts unsure as to how long TI will continue to support existing customers. Investors are also left scratching their heads trying to determine when revenue from smartphones and tablets will disappear and how long it will take before the new strategy starts to pay off.




User Comments: 6

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Guest said:

Hummm...

Freescale should purchase the IP & roll this in. Having Amazon and B&N as customers could be quite a shot in the arm.

mosu said:

Texas Instruments, beware! A new "Carly Fiorina " is rising..Also, shame on Motorola for using Intel crap instead of TI.

Guest said:

...and how is Intel crap, hmmmm? You made the claim, now substantiate!

Guest said:

Think of it like this, x86 is just about the worst architecture in history and it takes all Intel's ingenuity to attempt to mitigate that awfulness. Intel can afford to keep throwing megabucks at it to keep their place in the market (and the other three x86 licensees under their thumb) but as an architecture it is truly the worst out there. There is only one thing that is pushing x86 into the mobile space that is dominated by already superior ISA models like ARM. Money.

Guest said:

That is perhaps the worst explaination I have heard anyone pump out on the subject. All I read was, "x86 is the worst architecture out there, because it's awful..." ...AND? Where is your proof, where have you explained why the CISC architecture, used by Intel based chips (read x86), is worse than a RISC model (ARM). I'm struggling to understand here, so please explain...

Camikazi said:

That is perhaps the worst explaination I have heard anyone pump out on the subject. All I read was, "x86 is the worst architecture out there, because it's awful..." ...AND? Where is your proof, where have you explained why the CISC architecture, used by Intel based chips (read x86), is worse than a RISC model (ARM). I'm struggling to understand here, so please explain...

Guest arguing with Guest gets really confusing for me :P

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