mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

TI Gives Up On Smartphones And Tablets

TI has given up on the smartphone and tablet markets for it OMAP processors and connectivity products, and is going to focus those products on the embedded processing market, says Greg Delagi, senior vice president for embedded processing at TI.

The rationale is that the smartphone and tablet market is coming down to two major players, Samsung and Apple, which each have their own processors.

 

TI will continue to support existing smartphone and tablet customers like Amazon, where it is in the Kindle Fire, but will not develop future ICs for smartphones and tablets.

 

“We believe that that opportunity is less attractive as we move forward,” says Delagi.

 

In May, TI folded its wireless business into its embedded processing division. It is the second largest player in embedded processing with 30,000 active customers and 12% market share, says Delagi.

 

Delagi concedes that growth in the embedded market will be slower – about 7% a year – but says it “generate a more stable, profitable long-term business” with gross margins between 55% and 60% and operating margins of about 30%.

Tags: market share, processors, samsung, smartphone, term business

Related Tech News

5 Comments

  1. Bitter
    September 30, 2012 21:46

    Or perhaps they finally have given up trying to milk their old dried up cash-cow Nokia? And following the death-spirals of STM/STE might have “assisted” in their decision?
    http://blogs.wsj.com/digits/2012/09/26/why-ti-is-moving-away-from-smartphone-and-tablet-chips/

  2. David Manners
    September 28, 2012 09:04

    You’re right Bitter. If they get their shit together they’re in the hunt.

  3. Bitter
    September 28, 2012 08:59

    Don’t forget STE/STM, if they (ever!) get manage to their sh1t together. ;)

  4. David Manners
    September 28, 2012 08:29

    I think it gives Qualcomm (+ Nvidia and Broadcom) a pretty clear run, SecretEuroPatentAgentMan.

  5. SecretEuroPatentAgentMan
    September 28, 2012 08:23

    How does Qualcomm chips fit into this? So far their Snapdragon chips have done well. And like TI they do quite a bit of DSP work too.
    Perhaps they are a bit too quiet; getting information on their Linux capable Hexagon DSP is surprisingly hard even though several such blocks are found in their Snapdragon chips. Perhaps this is in line with the CEO who seems to believing in speaking softly…

Share your knowledge - Leave a comment