With the boost in Mobile phone sales worldwide, many suppliers of component chips do not seem to be pleased enough with it as their sales and profits began to be hurt as a result of strong demand for affordable cellphones in the emerging markets of Mobile phone. As low-cost phones are built-in with fewer chips than costly smartphones, they have started tempting plenty of consumers in money-spinning western markets. And could be, by the second half of this year a new, feature-packed phones, come to market, bringing about lots of problems for the chip manufacturers.
US-based Texas Instruments and Franco-Italian STMicroelectronics, both leading purveyors of chips for cellphones, reporting their earnings this week, revealed that sales came down to 8% and 1.2% correspondingly in the conventionally robust Q4, while sales skip from the Q3 as a result of end-of-year holidays purchases.
The abrupt hurting amongst chip manufacturers is noteworthy since the world’s leading cellphones producer Nokia has been experiencing the bang of the shift to low-cost phones over years, but for it in fact impacting its top chip providers. Analysts indicate that well-off consumers in developed countries are not making purchase of costly phones the way they used to, but now they are switching on to the cheap and best Mobile phones, which have lots of features and functionality at the minimum prizes.
