When will TI learn that lavishing direct support on the telecom giants whilst leaving organic growth areas such as the industrial sector to the mercy (and disloyalty) of their distributors will always come back to haunt them. TI budgets look overcooked & mightily exposed as the failings of Nokia & MOT are having an unpleasant & immediate impact on TI's revenue.
"This is more a customer performance in the market issue. This is not a competitor coming in to displace TI in these handsets."
That's not completely true. Nokia is declining - right - but it's still a big business.
ST took the Nokia market from TI two years ago because TI was drastically reducing investments on Nokia ASICs and OMAP chips to make more profits and TI failed to meet their expectations from outsourcing R&D to India. Now we see the results.
Analog business will never catch what they did with Nokia.
Very interesting. Nokia is a dying breed and Elop is a double agent to the Finnish. If they cannot sell their things, they better get ready because this is just the beginning of a long decline in Nokia.
Analysts have a funny way of pointing out the silver lining in bad news. Yes, the revenue shortfall is in a business that TI is getting out of anyway, but still -- lower guidance is never received very well on Wall Street. Nobody ever says, "we didn't really want those sales anyway."
TI was knowing this from long time i dont understad why TI is crying. They know their 4 Bn from 2006 Wireless business will come down to 1 Billion if they are lucky and they get huge OMAP wins. Worst is they never invested in Wireless in last 5 years and still wants the same result. Going forward for TI it will be bloody path without full portfolio (because of lack of wireless Modem) they will loose major chunk around ~85% of market going forward and will face stiff competion from ST-E, Qualcomm, Nvidia, Broadcomm, Samsung and Renesas on APE + connectivity side for Tablets and very high end Mobile devices.
Good thing that Nokia slow down gave a warning for TI on where to concentrate their eforts. Their dependence on Nokia for majority of their OMAP chips was detrimental in the long run.
Heck they could have done more to OMAP than just sell it to OEM's. They, like NXP are not keeping up with the changing times and that shows in their results.
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