Declining iPhone Sales Can Have Ripple Effect On Texas Instruments’ Earnings In Q1’16

-1.63%
Downside
169
Market
166
Trefis
TXN: Texas Instruments logo
TXN
Texas Instruments

Leading analog chip maker, Texas Instruments (NASDAQ:TXN) is set to report its Q1 2016 earnings on April 27th. For Q1’16, the company expects to see a decline of $150 million in personal electronics segments, which contributed to 30% of TI’s overall revenues in 2015. However, the decline can be more severe as Apple’s iPhone sales are forecasted to slump  in this quarter for the first time since their introduction. Apple, which contributed to 11% of TI’s overall revenues in 2015, buys touch screen controllers, power management chips and control devices for iPhones and iPads from TI. TI’s drop in personal electronics segment can be further supported by a forecast of Consumer Technology Association (CTA) of U.S, which predicts a 2% drop in the consumer electronics spending in 2016. Nevertheless, the company will continue to benefit from an efficient manufacturing operation by expanding to 300 mm analog production in 2016.

TXN_Q&A_PreEarnin

*Source [1]

Notes:

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Notes:
  1. StraitsTimes, Consumer Tech Spending Taking A Hit, January 2016 []