October 24, 2013
People are switching to cheaper smartphones
Losses by a prominent European chip producer add weight to claims that high-end smartphones are losing appeal. Salon reports.
STMicroelectronics NV, Europe’s biggest semiconductor maker, said chip demand is taking a hit as smartphone manufacturers trim orders, adding to testimony of weakening appetite for high-end handsets.
Fewer orders and slower demand have dominated third-quarter reports in the chip industry. “It’s not just us, you’ll see it also from our competitors,” Chief Executive Officer Carlo Bozotti said in a conference call. He said the slowing demand is temporary.
A shift in demand toward lower-priced smartphones will drive handset shipments this year, according to a report this week by researcher Gartner Inc. The year-end shopping season will “be all about smaller tablets as even the long-term holiday favorite — the smartphone — loses its appeal,” she said in the statement.
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