This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TI Dials It Down

Updated from 5:09 p.m. EDT

Texas Instruments (TXN - Get Report) said sales growth in the last quarter of the year will be less than seasonally expected, as the wireless market that has propelled the company all year shows signs of cooling off.

Monday's anemic outlook is the first time that Texas Instruments, the world's No.1 maker of chips for cell phones, has acknowledged any significant weakness in that key market. Over the course of the summer, several of TI's competitors cut their sales projections citing their customers' rising chip stockpiles.

TI officials stressed that the company was not seeing any fundamental drop in demand for cell phones, adding that their expectations for the industry's total handset unit sales in 2006 had not changed.

Rather, TI said its weak outlook was the result of a slowdown in adoption of the high-end, so-called 3G cell phones, which account for roughly one-third of TI's wireless-chip sales.

"What we're seeing here in the outlook is the mix between the low-end, or relatively inexpensive cell phones, and 3G has shifted," CFO Kevin March said in an interview. "The expectations will be more weighted toward the low end than previously anticipated."

March described the pause in 3G sales as a normal "growing pattern" in the adoption of new cell-phone technology, as demand moves in fits and starts.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NSM $25.32 0.00%
TXN $57.33 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs