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