SOURCE: The Bedford Report

The Bedford Report

November 18, 2010 08:46 ET

Adapting to the Tablet Trend Is Imperative for These Chipmakers

The Bedford Report Provides Analyst Research on Intel & Texas Instruments

NEW YORK, NY--(Marketwire - November 18, 2010) - It has been a mixed bag this year for chipmakers. While the smartphone and tablet trends have given certain key industry players many new sources of revenue, we are seeing somewhat of a double edged sword as the tablet craze is having a negative effect on PC sales. As a result, semiconductor companies whose niches are focussed on PCs are already seeing their ratings slashed by analysts and are beginning to report less-than impressive earnings. Even companies with products that assist smartphones and tablets have to be careful. With the rush to manufacture more products faster, quality has at times been compromised, and reputations have been tainted. The Bedford Report examines the outlook for companies in the Semiconductor Industry and provides research reports on Intel Corporation (NASDAQ: INTC) and Texas Instruments, Inc. (NYSE: TXN). Access to the full company reports can be found at:

Analysts had been forecasting negative long term effects of the iPad and other tablet computers on the PC industry. According to market research firms Gartner and IDC's estimates, worldwide PC shipments grew 7.6 percent during the most recent quarter, well below its anticipated projection of 12.7 percent. CEO Paul Otellini of the semiconductor juggernaut Intel downplayed the threat from tablet computers like Apple's iPad, and noted that the year should still be pretty good for PC makers and forecasted an 18 percent increase in industry growth.

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The market for graphics processors is also hurting due to a slowdown in Laptop sales. According to the analyst firm Jon Peddie Research, graphics product shipments were down 1 percent sequentially in the third quarter.

Intel remains the clear-cut market share leader in graphics products with 55.6 percent market share according to Jon Peddie Research. Intel is hoping to steal more market share from graphics chip rivals Nvidia and AMD early next year when it launches a chip called "sandy bridge" that combines a traditional core processor with a graphics processor.

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