So I guess it wasn't a fluke, and maybe it wasn't Nokia
When Texas Instruments
Some pundits concluded that TI was looking at a soft quarter, solely because a couple of its larger customers had shifted market share to a TI competitor -- Qualcomm
Turns out, this latter group was right.
Sony Ericsson warned yesterday that it was indeed experiencing a slowdown in sales of its high-end cell phones -- one big enough to cut its Q1 profits in half. Whereas Sony Ericsson had earned about $571 million pre-tax in last year's Q1, this time around, the company expects to earn no more than $276 million -- a good 12% shy of analyst projections.
The news sliced about 10% off Ericsson's market cap yesterday. The much more diversified Sony lost just 2%. Nokia and Motorola rang in with 10% and 4% losses, respectively.
Equally interesting, companies that make the chips for these high-end gadgets also suffered. Qualcomm and Broadcom, for example -- both of which could have been expected to benefit, if each were merely capturing TI's lost market share -- both shed about 6% of their value.
But the most interesting thing of all? To this Fool's mind, it's the fact that the companies with the highest-end cell phones of all -- Apple
I wonder how long that will last?