The Channel logo

News

By | Brid-Aine Parnell 11th December 2013 11:43

Drooping smartphone sales mean hard times ahead for Brit chipmaker

Imagination Tech says Big Two mobemakers shipping fewer units in Q2

British chip firm Imagination Technologies has said that a slowdown in the top end of the smartphone market, where Apple and Samsung dominate, will hit the number of chips it ships in the second half of the year.

The company warned that it now expected its partners, including the fruity firm, to need between 580 million and 630 million chips in Q2, down from its previous forecast of around 650 million.

If the company's MIPS processors are taken into account, from its acquisition of MIPS Technologies earlier this year, total chip shipments will reach 1.3bn.

At the same time, it said that its first half adjusted pre-tax profit had dropped to £13.2m from £16.8m, partly due to losses in its Pure digital radio unit. Revenue in the months to the end of October grew by 19 per cent to £85.2m.

"There will continue to be fluctuations and changes in the markets in which we operate, but we are confident that our strong and comprehensive IP families, and the solution-centric platforms they are enabling, will allow us to take advantage of the numerous growth opportunities ahead," chief exec Hossein Yassaie said in a statement.

The news sent shares falling over 15 per cent, dropping to around 205p on the London Stock Exchange. ®

comment icon Read 9 comments on this article alert Send corrections

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever