There’s an outside chance that TI might see some long term benefit should the market recovers. But I wonder if if is a case of “too little too late” – particularly as rivals such as Qualcomm, Nvidia and Broadcom have started to ramp up their product portfolios. Aside from firing workers and being in a state of chronic restructuring, Texas Instruments must figure out a way to secure more business and get its revenues going in the right direction again. This is the only way for the stock to work – despite how undervalued it might appear.
The smartphone and tablet processor market represented roughly 8% of TI’s revenue. Although it is not a significant number when compared to the likes of Qualcomm, it is nonetheless a growing market. That Texas Instruments have essentially giving up on this business implies that it is no longer able to compete with the likes of Broadcom and Maxim. What’s more, this just might have presented an opening for beleaguered Intel and Atmel to steal some market share
As one poster put it, When the going gets tough, TI folds like a used condom.