GPS chip maker SiRF Technology has reduced first-quarter sales estimates and implemented a cost-savings plan that will cost about 50 people their jobs and result in the closure of SiRF’s offices in Stockholm and South San Francisco. Aside from general economic malaise softening demand for personal navigation systems, the other whammy for SiRF was a lousy mobile-TV market. According to the release, it’s getting out of the market altogether.
“Although SiRF has made considerable progress on the development of its mobile TV technology, the market for mobile TV has been slow to ramp up. In view of this, the Company has stopped further product developments in the mobile TV space and will focus its efforts on its core business.”
Much of the data has pointed to this, but companies, such as Broadcom, which has pushed its mobile TV chips into higher-volume production and Dish Networks, which recently bid $712 million for spectrum that can be used for mobile television, still haven’t gotten the memo. Either they can afford to play now at a loss, in hopes of a slow market eventually arriving, or they know something we don’t.