Texas Instruments, the second largest U.S. semiconductor maker, reported earnings and gave a forecast that missed analysts’ estimates amid slowing demand for its mobile phone and analog chips, according to Bloomberg.com.
The report notes that second-quarter net income declined to $US588 million, from $610 million a year earlier. Sales also fell 2.1 per cent to $US3.35 billion.
Demand for analog chips, which perform basic functions in devices from computers to washing machines, was worse than expected in the last month of the quarter and Texas Instruments also lost orders for its mobile-phone chips at Sony Ericsson Mobile Platforms.
As demand for chips used in mobile phones slows, wireless sales also fell by 12 per cent to $US903 million in the quarter, the company said.
Analog chips which accounted for about 35 per cent of sales last year and semiconductors used provided 30 per cent.
The Bloomberg report also notes that some analysts are concerned that Texas Instruments is “losing out on sales of chips used in the most expensive, so-called third- generation phones and last year, the company lost its leading position in the phone-chip market to Qualcomm”.