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Texas Instruments drops OMAP tablet support

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TI plans on dropping tablet and smartphone processor support in favor of car computer systems

In a surprising change of direction, Texas Instruments has decided to forego their tablet and smartphone processor support and head towards development of car systems. TI is hoping that this will lead to a more profitable and stable business, as they seem to see the current smartphone/tablet market as a less attractive option moving forward.

In a webcast meeting, the company announced the decision but added that they would retain support for existing customers. Unfortunately, that wasn't enough to reassure investors, as the company's stock dropped 3% by the end of the day. In addition, the company had no qualms with acknowledging that the overall growth will be slower than the current tablet/smartphone market, but they do expect more stable and long-term benefits from the move. There was no mention as to what would happen with projects currently in development, including their prototype Windows RT tablet.

The Dallas-based company's OMAP line of processors are currently used in various devices, including the Kindle Fire HD, Nook Color and Motorola's line of Droid smartphones. Sadly, NVIDIA's Tegra and Qualcomm's Snapdragon SoCs appear to be more appealing options for manufacturers, and Texas Instruments will be hoping for better luck with onboard car computers. 

 

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Omar Qudsi, 2012-09-26 (Update: 2012-09-26)