Texas Instruments (NYSE:TXN) reported profit of 45 cents that met analysts’ expectations, and sales that were a little bit light at $3.76 billion, below the $3.79 billion analysts were looking for. Not the disaster that might have been expected following weak results from analog chip competitor Linear Technology (NASDAQ:LLTC) last week. Like Linear, TI is calling for 4th quarter results below expectations: sales of $3.75 billion will be below analysts’ forecast of $3.8 billion, though profit of 46 cents a share is more than the 45 cents analysts had been expecting.
TI says the fourth quarter’s semiconductor industry revenue growth will be less than seasonal norms, and one of the prime culprits: cheap cell phones driving down chip prices, said TI president and chief executive officer Rich Templeton in a statement.
So cell phone price wars really are hurting. But maybe not as bad as everyone thought. Until the next pre-announcement. TI says it will give an update on the outlook on Dec. 11.
TI shares are down slightly in after hours trading, at $31.31, reversing a modest 1.63% gain during normal trading.
Related: We'll post the Texas Instruments conference call transcript here.