Erach Desai, an analyst with American Technology Research, has some great insights into this recent brouhaha about Texas Instruments and Nokia and Samsung.
TXN feels the concerns over current weakness from Nokia (NOK, $14.05, Buy-Lin) to be somewhat overstated. Cell phone market demand, in TXN’s view, remains healthy with market share issues being more of the problem for Nokia rather than a reflection of demand. Indeed, TXN is seeing notable strength from other cell phone makers but acknowledges weakness from Nokia does have an impact on TXN. Notable positives include TXN’s efforts to penetrate the Samsung business, particularly in camera phones (as well as the separate DLP TV business). Recent wins at Samsung should be viewed as a “foot in a door” and not material near term but an opportunity longer term. A notable highlight is that TXN has twice the chip content in a Motorola phone than that in a Nokia phone.