Here Is Why The “Other” Segment Important For Texas Instruments
The “other” segment of Texas Instruments’ (NYSE:TXN) constitutes revenues from its globally known calculators. It also includes revenues from other smaller product lines, ASICs (Application Specific Integrated Circuits) and DLP products that are used in projectors to create high-definition images. Apart from this, it includes royalty revenues that come from TI’s patent portfolio. The company’s revenues from this segment have declined in the last couple of years. This can be attributed to the exit of TI from its wireless business and a weak demand for custom ASIC products due to headwinds in the wireless infrastructure segment. Further, calculators are a low growth business segment and can’t provide enough growth to offset the revenue decline in the overall segment. Thought this segment provided only 14% of TI’s overall revenues in 2015, it is still quite important for TI. Below we list down the reasons for this:
Notes:
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