Texas
Instruments
(
TXN
) or "TI" has launched a low-voltage power management unit, the
TPS659119-Q1 for automotive infotainment systems.
TI's new power management unit has the fastest start-up time
in the industry to meet the demands of instant-on automotive
applications, such as the entertainment unit and advanced driver
assistance systems (ADAS) in an automobile.
The new unit may work better with TI's own automotive OMAP
processors, which include DRA6x infotainment processors and other
ARM Cortex -A product offerings.
The infotainment systems may include rear-seat entertainment
(movies, games, TV, social networking and others), GPS navigation
system, internal connectivity to mobile devices, USB ports and
others. Thus, the need for power-efficient microprocessors is
required to run the complex features of the infotainment
system.
Currently,
Intel Corp.
(
INTC
) and others are offering these low power consumption processors
for in-vehicle infotainment systems. Thus, TI may face
competition going forward.
Currently, automobile companies such as
General Motors Co.
(
GM
),
Toyota Motor Corp.
(
TM
) and others are trying to attract customers by providing
state-of- the-art in-vehicle infotainment systems. It has become
one of the crucial marketing strategies for automobile companies
worldwide to boost sales. Thus, TI's continued drive toward
launching new products in this segment is allowing manufacturers
to deliver advanced features to customers.
According to IHS iSuppli, the electronic content of automotive
infotainment equipment may touch $41.2 billion by 2016. TI has
the scope to widen its net in this segment but it has to keep up
with other competitors by launching better processors in the
market.
In the fourth quarter of fiscal 2012, TI generated total
revenue of $2.98 billion, down 12.1% sequentially and 12.9% year
over year (slightly better than the mid-point of the recently
narrowed guidance range of $2.89 billion to $3.01 billion). The
Analog business fell 9.4% sequentially and 1.5% year over year.
The sequential decline was attributable to broad-based weakness
across the HVAL, HPA, SVA and power management product lines.
Texas Instruments has a Zacks Rank #3 (Hold).
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