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Texas Instrument exits smartphone & tablet market

The race to be the best processor out there proves to be too much to handle for the company behind OMAP (Open Multimedia Applications Platform) System-on-Chips as they bid farewell to the mobile industry and to focus their attention to “a broader market”.

In line with this, Texas Instruments will be abandoning their OMAP lineup which serves as an engine for the likes of Samsung Galaxy Nexus, BlackBerry PlayBook and Amazon Kindle Fire and will shift to the industrial market which hopefully brings them a more lucrative business.

One of the reasons why device manufacturers chose other chips instead of TI’s OMAP lineup is because of the SoC’s lack of built-in modem which adds to a device’s cost of production which then leads to a pricier device. Because of this, Texas Instruments had a tough time competing with other chip manufacturers like Qualcomm who caters to the majority of device manufacturers and the growing popularity of MediaTek for cheap devices. In addition, device manufacturers like Apple and Samsung also fashions their own chips for their devices with the latter even distributing their chips to be used by other companies.

Things are out of shape for the TI right now and to make things worse investors are losing their trust on the company which reflects on its decreasing shares. Can the Texas Instrument smoothly transition from one side of the world to the other? Your guess is as good as ours.

Source: reuters
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