updated 06:55 am EDT, Thu June 9, 2011
Texas Instruments lowers forecast for Q2
Texas Instruments has lowered its outlook for the next quarter this year citing weaker demand from one of its principal customers, Nokia. Although Nokia will be using TI's ARM-based OMAP 4 chips in its Windows Phone 7-based phones starting later this year, it has in the meantime been dropping market share at an alarming rate. However, any upturn that Nokia may experience when its WP7 will not arrive in time to impact on TI's guidance for the coming quarter.
TI's vice president of investor relations said that it would not be overstating the case to say that the bulk of the of blame in TI's market downturn lays in Nokia's woes. "All of the change in the middle range of the update, versus where we were previously, was associated with that customer," he said during a conference call on Wednesday.
The company's second-quarter forecast in other areas is "doing well", however it is being dragged down by its reduced handset chipset sales. However, it is not all doom and gloom for TI. There is a strong possibility that Google's will switch its preferred chipmaker for the next version of Android, Ice Cream Sandwich, from NVIDIA to TI. Microsoft is also rumored to be making its own hardware for the tablet version of Windows 8. A rumor is circulating that it plans on integrating a 1.8GHz OMAP4470 chip into the tablet. [via Wall Street Journal]