That is true. There are products that need to be phased out because of compatible products between the two portfolios. I think TI is looking at personnel redundancies first, but the product line needs to be streamlined as well. I don't think the upper management of TI will notice any downturn in their pocketbook, but many of the rank and file will.
@dylan.mcgrath: could it be that TI's product portfolio is not diverse enough to ride this ride out this slow down? After all, there are many common products between what TI had before NSC merger (like the power management ones)... though it certainly added more in customers.
Don't be surprised if another round of mergers takes place over the next 6 months. Any thoughts on the next targets? Soon we will be down to only 2 major vendors in each key market. That may provide a clue...
I would think that it is obvious that the current economy is at best faltering along, it does not surprise me that future sales orders are slowing. I am not sure how many companies feel strong about the next few quarters, given that it makes a lot of sense for cautionary buying. What surprises me is that we do not see more of this!
@daleste- TI was pressed on this during the analyst call. One analyst said Intel and Xilinx are not expecting sales to be down as much compared to a typical third quarter. Slaymaker basically said those are different companies and that TI has a broader product portfolio than both of them. He also said that different management teams will likely interpret what is happening in different ways.
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