Texas Instruments Slides as Analysts' Estimates Prove Unreachable

Texas Instruments has disappointed investors with a fourth-quarter sales forecast that fell short of analysts' expectations, following increased competition and reduced demand in the electronics components markets.

The company has issued a statement indicating that its revenue for the last quarter will be between $3.19 billion to $3.33 billion, causing the company's stock to fall three per cent in its biggest drop in four months, joining a 7.9 per cent overall slide this year.

"The weakness is pretty much broad-based, with the exception of wireless," Texas Instruments vice president Ron Slaymaker claimed during a call with analysts. "Orders will likely decline some from the third quarter."

The company's figures are a significant drop from the average analyst estimate of $3.41 billion, as calculated by Bloomberg for a Businessweek article on the matter.

Despite growing interest in ARM-based processors, of which Texas Instruments produces the OMAP family as used in Amazon's latest Kindle Fire tablet, increased competition in that market from the likes of Samsung, Qualcomm and Nvidia has resulted in reduced shipments, joining an overall trend across the industry for a sales slowdown that has hurt the company's forecast.