News by Andrew Kameka on Wednesday September 26, 2012.
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Investors in Texas Instruments (TI) have wanted the company to exit the mobile processor market to pursue more profitable businesses. TI, which produces processors for the Samsung Galaxy Nexus and Amazon Kindle Fire tablets, says it may heed that advice and place less emphasis on the wireless market. In an investor meeting webcast, TI executive Greg Delagi said prospects for developing processors for smartphones and tablets are not as attractive in the future, so it will seek to move its OMAP business towards embedded services like smart consoles in automobiles.
TI did not explicitly state it will exit the smartphone and wireless business, but its comments did give investors and analysts cause to believe that the company is going to pursue that route. TI sees embedded products as a more stable business to pursue because the smartphone market is so competitive and volatile. A manufacturer may choose rivals like Qualcomm or NVIDIA for a number of reasons. A phone maker might even follow Apple, Samsung, or Huawei and design its own processor. TI is currently third, behind Qualcomm and Samsung, in processor vendor revenue. Investors and TI executives believe there may be more value for the company to leave the smartphone and tablet business to others, or at least invest fewer resources into the wireless segment of its business.source: Reuters
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.