Altera, another chipmaker, has also forecasted lower revenue because of weak sales across all of its business verticals, except for sales to the military.
Blame it on the customers
Texas Instruments won orders from Amazon.com
But the situation at Amazon is probably not the only reason. Texas Instruments supplies chips to Nokia
The way ahead
The good news is that demand continues to remain upbeat for the rest of the company's businesses. For instance, its network infrastructure and automotive segments have been looking particularly strong of late.
Besides, the company can look forward to a better second quarter as client inventories deplete and order growth returns. Add to this the growing popularity of smartphones and tablets, and Texas Instruments can surely look forward to some good results in the coming months, but that again would be linked to the fortunes of its customers.
The Foolish bottom line
While Texas Instruments' wireless segment is likely to see a slowdown for some time, it should not undermine the company's growth and profitability in the long run. The stock may not have a huge dividend yield, but there are enough reasons to feel optimistic about the company for the year ahead.
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