SAN FRANCISCO—Texas Instruments Inc. said Wednesday (Nov. 14) it will cut about 1,700 jobs worldwide as part of a previously disclosed plan to re-target R&D for its OMAP product line at the embedded systems market, away from smartphones and tablets.
The announcement that TI would refocus OMAP caught many off guard because the product had notched a number of high-profile design wins. But analysts, particularly Will Strauss of Forward Concepts, said the trend in smartphones is toward integration of the applications processor and baseband processor—a trend TI can't keep up with because it began phasing out its baseband technology years ago.
At the time, TI also noted that Apple Inc. and Samsung Electronics Co. Ltd.—which together dominate the smartphone and tablet markets—design their own applications processors, leaving less of an available market for OMAP to compete in.
In an interview following TI's announcement Wednesday, Strauss said he was expecting TI to cut jobs after changing course with OMAP.
"We knew the hatchet was coming down. It had to," Strauss said. "They had a bloated operation there for the reduced market that they were facing."
But Strauss—who said he was certain TI explored the possibility of selling all or part of the OMAP division prior to Wednesday's announcement—said he was surprised by the number of jobs eliminated. "TI's way is usually more subtle," Stauss said. "But then again, we've got an overall market that is headed down right now."
it's hard to imagine a marketing ppl with a business degree, ok maybe a mba, how can he guide a tech company to compete.
I just watched another salesman turned coo's address, it's pretty much bullsh t.
all he know is cost saving,
APs are now low margin commodities, better to focus capital and resources om something that will return net margins. analog, mixed-signal, power management, custom embedded ARM with mixed signal and NV memory. Why stay in a market and drag down overall margins? Need to find markets where they can innovate and differentiate.
"TI can't keep up with because it began phasing out its baseband technology years ago"... They shoot their feet, and now blame wounded feet to cut leg.. they may kill themselves oneday blaming not having leg.
Competitiveness is not the sole responsibility of a specific technology but should be ingrained as a corporate culture. A rare thing to be maintained over the life of an 'old' tech co. like Moto/TI. GE is one of the few cos. the exude this- but then again look what Jack Welch built!
This comes as a surprise ? Not. When the attitude was to demand a virgin, cure for cancer, mobile account or first born - (take your pick from the multiple choice) before one could be "privileged" to work with OMAP - potential accounts were turned off. Stop begging the big wigs to work with you and support those that do.
This is what happens when there is vanilla designs based on ARM....no differentiation, means You Die. Period. Next one is Freescale, then Marvell, then broadcom, and on and on. ARM means loss of jobs. Send ARM back to UK. They can live with their Austerity over there